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.
Video: Traders unload puts in VIX
July 28, 2015
As the market rallies today, Group One's Jamie Tyrrell says traders are selling August 14 and 14.50 VIX puts in the belief that downside will be limited.
Video: Call buyers ride pop in VIX
July 27, 2015
With the spot volatility index jumping well above 15 today, Group One's Jamie Tyrrell says VIX call buyers are targeting the 20 strike in August and September.
Video: Steady buying in VIX calls
July 24, 2015
With the market down again today, Group One's Jamie Tyrrell says traders are snapping up calls in August, September, and October.
Video: August VIX calls pick up
July 23, 2015
Group One's Jamie Tyrrell says traders are buying VIX calls again today, with the largest purchase in the August 18 contracts.
Videocast: July VIX settles at 12.82
July 22, 2015
With this morning's July expiration out of the way, Group One's Jamie Tyrrell says traders are buying the VIX August 18 and 22 calls.