OptionsHouse

Options Trading News

January 10, 2013  Thu 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Yesterday's session was the reverse of the previous two days, with the big three stock indexes  and the CBOE Volatility Index all higher.

The S&P 500 was in positive territory all day and finished at 1461.02, up 3.87 points. It had climbed above 1464 in the first hour of trading but gave up ground from there. Support remains at 1420 and resistance at 1475.

The Nasdaq 100 was up almost 9 points to 2727.65. It was as high as 2735 but followed a pattern similar to that of the SPX. It has support and resistance at 2670 and 2785 respectively.

The Russell 2000 was up 4.81 points to 879.51, a new all-time closing high. The small-cap index is right up against resistance, but support continues to 853.

All three equity indexes are above their 10-day moving averages.

The VIX rose 0.19 points, or 1.4 percent, to end the day at 13.81. It had fallen to 13.22 in the morning, its lowest level since May 2007, but rebounded quickly from there--indicating that option sellers are looking for a floor in volatility levels.

The VIX futures were mixed at the end of the day. The January futures gained 0.05 points to close at 14.70, while the February futures lost 0.05 points to finish at 16.40.

The early action pushed the iPath S&P 500 VIX Short-Term Futures ETN (VXX) below 27 to yet another all-time intraday low, but it did end the day with a small gain.

More than 568,000 VIX options changed hands, led by 359,000 calls. The action left the VVIX Index, which measures the implied volatility of the VIX options, barely higher at 78.51.
Share this article with your friends


Related Stories

VIX

Video: VIX call buying in August

July 7, 2015

As the spot volatility index climbs above 18, Group One's Jamie Tyrrell says traders are buying August VIX calls above the 40 level.

VIX

Videocast: Volatility settles down

July 6, 2015

The spot VIX is still higher, but Group One's Jamie Tyrrell says volatility has pulled back from its initial spike this morning as the market digests the Greek situation.

VIX

VIX at highest level in 4 months

June 29, 2015

The CBOE Volatility Index is up 23.75 percent to 17.35 in midday trading, just off its intraday peak and its highest level since Feb. 11.

VIX

DRJ: Keep a close eye on volatility

June 29, 2015

As the Greek crisis intensifies, we are likely to see an explosion in volatility as widespread selling in European markets in turn pressures our indexes.

VIX

Video: Heavy July VIX call selling

June 24, 2015

After a steady stream of buying recently, Group One's Jamie Tyrrell says a trader sold 75,000 July 17 calls yesterday, and those levels are holding today.

Invest Like a Monster - San Antonio: October 9-10

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

View more education articles »