OptionsHouse

Options Trading News

November 27, 2012  Tue 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equity indexes ended yesterday's session at their best levels, though the S&P 500 closed slightly negative.
 
The S&P 500 was down 2.86 points to close at 1406.29 after dipping below 1398 two hours into the session. The SPX held onto most of its gains from Friday's shortened session, which saw the index close above its 20-day moving average for the first time in more than a month. Support is now 1385 and resistance at 1430.

The Nasdaq 100 finished at its session high, up 12.08 points to 2651.67. That 0.46 percent gain brought the NDX to its highest close since Nov. 6. The index also closed above its 20-day moving average, for the first time since Oct. 4. Support is 2562 and resistance at 2700.

The Russell 2000 finished at the high of the day like the other indexes, gaining 1.84 points to close at 809.02. It has support and resistance at 790 and 826 respectively.

The CBOE Volatility Index was up 0.36 points, or 2.4 percent, to 15.50, though that was the low for the session. The VIX was up mainly because it was coming off a holiday-shortened week, and the SPX options on which the index is based were repriced for a full week of time decay.

All of the VIX futures were lower on the day, a more telling look at actual volatility trading. The December futures were down 0.50 points, or 3.1 percent, to 15.60, barely above the spot index reading. The January futures fell 0.45 points to 17.45.

Total option volume was quite light, but the VIX contracts had a huge day with more than 934,000 traded, dominated by 773,000 calls. The SPX saw 460,000 options change hands, with puts slightly outpacing calls. The VVIX Index, which measures the implied volatility of the VIX options, was down 0.49 percent to a new all time low of 82.45.
Share this article with your friends


Related Stories

VIX

Video: VIX traders are selling premium

February 12, 2016

With the market rallying today, Group One's Jamie Tyrrell says traders are selling options to collect premium ahead of the three-day weekend.

VIX

Videocast: VIX calls target 2008 level

February 11, 2016

Group One's Mike Palmer says at least one trader is buying VIX May 70 calls, looking for levels not seen since September 2008.

VIX

Video: Huge VIX call spread in focus

February 10, 2016

Group One's Jamie Tyrrell says traders are taking both sides of the VIX March 30/50 call spread, with heavy volume at yesterday's close taking it to 500,000.

VIX

Video: Big call selling in volatility index

February 9, 2016

With the market "all over the map today," Group One's Jamie Tyrrell says traders are selling the VIX February 28 calls and the March 30/40 call spread.

VIX

Video: Call buyers chase spike in VIX

February 8, 2016

Group One's Jamie Tyrrell says traders are buying February calls in the VIX amid today's market drop, targing the 25 to 29 levels.

OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »