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

VIX slips as SPX hits new highs

July 24, 2014

Major equity indexes posted more gains yesterday, pushing the S&P 500 to new highs as the CBOE Volatility Index declined again.

VIX

Videocast: Target 19 line in VIX

July 23, 2014

Group One's Jamie Tyrrell says traders are targeting the VIX 19 line today, selling calls in August and buying them in October.

VIX

VIX down as SPX posts new high

July 23, 2014

A broad market rally pushed the S&P 500 to a new all-time high while sending the CBOE Volatility Index lower by more than 4 percent.

VIX

Videocast: Betting on lower volatility

July 22, 2014

As the market rallies today, Group One's Mike Palmer says traders are betting that the recent pops in volatility will be short-lived.

VIX

Videocast: No panic in the VIX pits

July 21, 2014

Group One's Jamie Tyrrell says today's volatility is relatively muted even after the morning downturn, though traders are buying August and October call spreads.

Premium Services

Free Webinars

Education & Strategy

How to navigate earnings season

We are embarking on one of the most frustrating times for new option traders: earnings season.Many new traders buy options,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER