OptionsHouse

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

Video: Big call selling in volatility index

February 9, 2016

With the market "all over the map today," Group One's Jamie Tyrrell says traders are selling the VIX February 28 calls and the March 30/40 call spread.

VIX

Video: Call buyers chase spike in VIX

February 8, 2016

Group One's Jamie Tyrrell says traders are buying February calls in the VIX amid today's market drop, targing the 25 to 29 levels.

VIX

Video: Near-term VIX calls purchased

February 5, 2016

Group One's Jamie Tyrrell says volatility traders had been looking farther out but are now picking up February 28 calls.

VIX

Videocast: Huge VIX call spread sold

February 4, 2016

As the market continues to churn, Group One's Jamie Tyrrell says today's big trade is the sale of a VIX March 30/40 call spread 115,000 times.

VIX

Videocast: Big March call spread in VIX

February 3, 2016

As the market pulled back this morning, Group One's Jamie Tyrrell says a major player bought a March 30/40 call spread 150,000 times.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »