Learn the trade here. Make it on tradeMONSTER

Options Trading News

May 22, 2013  Wed 1:16 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equity indexes continued to reach new highs yesterday, and the CBOE Volatility Index rose as well.

The S&P 500 gained just under 3 points to close at 1669.16. It climbed to a new intraday high of 1674.93 in the early afternoon. Support is at 1622.

The Nasdaq 100 was up just over 5 points to 3026.45. It hit 3036.71 earlier, its highest intraday level, but finished the day below Friday's close. Support is at 2944.

The Russell 2000 gained less than 1 point, but that was enough for a new record close at 998.78. It did again break above 1000 during the day but was unable to outpace Monday's intraday high. Support is at 964.

The VIX was again higher with the SPX, bucking their typically inverse relationship, rising 2.69 percent to 13.37. There is usually a strong correlation between the two--about 80 percent of the time--but that has been breaking down of late. This is especially surprising as the historical volatility of the SPX is 8.5 percent and we are coming up on a three day weekend, which should depress the VIX calculation.

The VIX futures were higher as well. Yesterday was the last trading session for the May futures, which settle at the open today. They were up 0.20 points to 13.50, while the June futures gained 0.30 points to close at 15.40. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 0.9 percent to 18.43.

The VIX options saw heavy action as more than 949,000 options traded, with 589,000 calls. The VVIX Index, which measures the implied volatility of those options, was up 3.6 percent to 88.04. 
Share this article with your friends


Related Stories

VIX

Rally drives volatility indexes lower

September 19, 2014

The major equity indexes pushed to new highs yesterday as volatility measures continued to fall. The VIX was down nearly 5 percent.

VIX

Equities slightly higher after wild ride

September 18, 2014

Equity indexes spiked lower and higher after yesterday's Federal Reserve announcement but ended the session little-changed, with slight gains.

VIX

September VIX settles at 13.03

September 17, 2014

The September VIX futures settled this morning at 13.03, right where the spot CBOE Volatility Index opened the session.

VIX

VIX declines as equities rebound

September 17, 2014

The major equity indexes rebounded sharply yesterday, driving the CBOE Volatility Index lower by nearly 10 percent.

VIX

Equities drop, send VIX above 14

September 16, 2014

Equity indexes finished yesterday in the red but were above the lows of the day. The CBOE Volatility Index posted its first close above 14 in a month.

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER