Options Trading News

December 11, 2012  Tue 1:16 AM CT

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.
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