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

Videocast: Traders buying VIX puts

April 17, 2015

Even with stocks down sharply today, Group One's Jamie Tyrrell says traders are buying in-the-money VIX May 16 puts apparently in the believe that volatility will pull back.

VIX

Videocast: VIX call buyer returns

April 16, 2015

A day after the April settlement, Group One's Jamie Tyrrell says a big player is back buying the VIX May 19 and 23 calls.

VIX

Videocast: April VIX settles at 13.81

April 15, 2015

The April VIX contracts settled at 13.81 this morning, but Group One's Jamie Tyrrell says traders are now buying the May 19 and 23 calls.

VIX

Videocast: VIX on eve of expiration

April 14, 2015

On the day before the April expiration, Group One's Jamie Tyrrell says traders are focusing on the VIX 14 puts and 15 calls.

VIX

Videocast: Huge VIX June trade

April 13, 2015

Group One's Jamie Tyrrell breaks down the strategy behind a three-way cash spread in June contracts that traded 650,000 times.

OptionsHouse

Premium Services

Education & Strategy

Investor deficiency in premium collection

Most investors have heard about selling options as a form of income generation. You hear it from brokers and financial advisors as a way to generate income without selling off pieces of your nest egg, dwindling through your retirement accounts, and then being stuck figuring out how to financially afford the rest of your life...

View more education articles »