Options Trading News

July 18, 2013  Thu 2:14 AM CT

Equity indexes closed higher yesterday after an uneventful congressional appearance by Federal Reserve Chairman Ben Bernanke, driving the CBOE Volatility Index lower.

The S&P 500 was up 4.65 points to 1680.91, finishing in the middle of the day's tight range. It almost made up for Tuesday's losses and was its second-highest close ever. There is some resistance at its all-time intraday high of 1687, and support is at 1652.

The Nasdaq 100 gained 7.81 points to end the session at 3085.28, another 13-year closing high. The intraday high of 3090.89 was also the index's highest in that time period. It has support at 3000.

(When equities are at highs, further resistance levels are obviously projections not based on previous trading patterns, so I will not list them.)

The Russell 2000 was up 3.78 points to 1042.53. It reached an all-time intraday high of 1046.13 but finished below Monday's closing high. It has support at 1018.

The VIX fell 0.64 points, or 4.44 percent, to 13.78. The volatility index is still well off the year's lows even as the S&P 500 sits at highs. The VIX and the SPX usually move inversely.

The July VIX futures settled yesterday morning at 14.43. The front-month August futures were down 0.60 points to to 15.60, while the September contracts lost 0.50 points to close at 16.95.

This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 3.45 percent to $16.81, a new all-time closing low. 
Share this article with your friends

Related Stories


Videocast: Volatility levels decline

October 6, 2015

Group One's Jamie Tyrrell says volatility trading today is implying that the type of VIX action from August and early September will not repeat itself.


Video: Traders see elevated VIX

October 5, 2015

Even with the volatility index falling below 20 today, Group One's Jamie Tyrrell says traders are buying calls and selling puts in the VIX.


Videocast: Target 35 level in VIX

October 2, 2015

Group One's Jamie Tyrrell says traders are targeting the 35 level for the volatility index in October, November, and December contracts.


Video: Traders sell VIX premium

October 1, 2015

Although the spot VIX remains elevated, Group One's Jamie Tyrrell says implied volatility is "pretty normal" for October.


Video: Sharp moves seen in VIX

September 30, 2015

Group One's Jamie Tyrrell says an October 23.50 straddle traded for about $5, indicating that a big move is expected in volatility levels.



The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »