tradeMONSTER: Trade free for 90 days

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

Videocast: VIX drops below 16

December 22, 2014

Group One's Jamie Tyrrell says the volatility index has dropped 8 points since the December settlement last week, and traders see the VIX heading even lower.

VIX

VIX declines as rebound continues

December 22, 2014

Equity indexes continued to regain ground on Friday, closing just off their afternoon highs as the CBOE Volatility Index finished lower.

VIX

Videocast: VIX January calls sold

December 19, 2014

Group One's Jamie Tyrrell says traders are selling premium in the front-month VIX contracts as volatility continues to decline.

VIX

VIX retreats as equities rally again

December 19, 2014

The major equity indexes continued to rebound and recover losses yesterday, pushing the CBOE Volatility Index down more than 13 percent.

VIX

Videocast: Huge bet on lower VIX

December 18, 2014

Group One's Jamie Tyrrell says a huge trade is looking for the VIX to fall in coming weeks, selling the January 20 calls and buying the 15 puts 90,000 times.

tradeMONSTER: Trade free for 90 days

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER