OptionsHouse

Options Trading News

December 11, 2012  Tue 1:16 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equities slipped into the close but still finished slightly higher yesterday, as did the CBOE Volatility Index.

The S&P 500 finished the day at 1418.55, up less than half a percentage point. It climbed past 1422 in the morning and was above 1420 into the last minutes of trade. The SPX remains above its 20-day moving average and its actual volatility has dropped below 7 percent. Support is at 1400 and resistance remains at 1420.

The Nasdaq 100 was up just over 7 points to finish at 2647.57 after trading above 2661 in the first two hours of the session. It remains right in the middle of support and resistance at 2600 and 2700 respectively.

The Russell 2000 had the best percentage gain of the major equity indexes, picking up 0.5 percent or 4 points, to close out the session at 826.26. It just about matched its morning high and was climbing right into the bell. The small-cap index faces resistance at 830 and support at 810.

The VIX ended the day up 0.15 points to 16.05. It popped to 16.47 at the open, held around 16.20 in the middle of the day, and then slid into the close--briefly trading below 16 at the bell. The gain is likely just because it was a Monday, when the SPX options are repriced to reflect the weekend time decay.

The move leaves the spot VIX back above the December VIX futures, which finished flat at 16 even. The January futures were down 0.25 points to 17 even.
 
More than 576,00 SPX options traded, with 350,000 puts. The VIX options turned over more than 388,000 contracts, with calls outpacing puts by 2 to 1. The VVIX Index, which measures the implied volatility of the VIX options, was up 1 percent to 81.56.
Share this article with your friends


Related Stories

VIX

Videocast: Huge call spread in VIX

August 4, 2015

Group One's Jamie Tyrrell says a major player bought the VIX August 16/18 call spread 300,000 times yesterday and sold August 12.50 puts to help finance the trade.

VIX

Video: 3-way play for higher VIX

August 3, 2015

The volatility index is little-changed even with the market lower today, but Group One's Jamie Tyrrell says one September three-way strategy is looking for a spike higher.

VIX

Video: VIX drop lures call buyers

July 31, 2015

With the spot volatility index slipping below 12 today, Group One's Jamie Tyrrell says traders are buying the VIX August 12 calls while premiums are relatively low.

VIX

Videocast: VIX put selling pays off

July 30, 2015

The VIX is little-changed today, and Group One's Jamie Tyrrell explains how recent put selling has paid off for volatilty traders.

VIX

Video: Case study in VIX pullback

July 29, 2015

Group One's Jamie Tyrrell says the volatility index's move down in the last week illustrates just how quicly the VIX can fall as well as rise.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Stops

With the growing popularity of the Advantage Point newsletter, we are picking up new members every single day. So, the powers that be have asked me to stray away from our Option Theory and Strategy topics and discuss a couple of topics related to our weekly trade ideas. This week we are going to talk about how to set and execute our stops.

View more education articles »