Stock selloff drives VIX up 7 percent
Chris McKhann | email@example.com
Equity indexes gave up a bit of ground yesterday but were well off session lows as last-minute wrangling continued over the federal budget.
The S&P 500 was down 10.20 points to close at 1681.55. It dipped below 1675 right out of the gate and saw some volatility in the last hour. It has resistance at 1730 and support is 1630.
The Nasdaq 100 fell 12.11 points to 3218.20. It followed a similar pattern as the SPX, dipping below 3187 early. It has resistance at 3248 and support at 3100.
The Russell 2000 was off just 0.40 points to 1073.79. It opened the day by slipping below 1062 before recovering and even going positive briefly in the afternoon. It has resistance at 1082 and support at 1040.
The CBOE Volatility Index was up 1.14 points, or 7.37 percent, to 16.60. The VIX topped at 17.49 at the open and climbed back above 17 before the closing bell.
The VIX futures followed suit, but to a lesser degree. The October futures are now lower than the spot volatility index, as those futures gained 0.70 points to close at 16.20. The November futures rose 0.55 points to 16.90. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 3.51 percent to $14.70.
Videocast: Big April VIX call buying
March 27, 2015
GroupOne's Jamie Tyrrell says a major player bought 150,000 April 20 calls late yesterday even as VIX futures fell.
Videocast: VIX not showing panic
March 26, 2015
Despite the market's downturn this week, Group One's Jamie Tyrrell says traders apparently do not believe that the VIX will hit the 20 level.
Videocast: April, August VIX calls
March 25, 2015
As the market selloff accelerates midday, Group One's Mike Palmer says traders are buying protection through VIX calls in April and August.
Videocast: Looking for higher volatility
March 24, 2015
Group One's Jamie Tyrrell says investors are buying upside calls in the VIX and selling puts, looking for the volatility index to push higher.
Videocast: Buying April VIX calls
March 19, 2015
As the market pulls back from yesterday's rally, Group One's Jamie Tyrrell says traders are buying VIX April 22, 26, and 27 calls.