OptionsHouse

Options Trading News

August 20, 2013  Tue 1:47 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equity indexes extended their recent string of losses yesterday, pushing the CBOE Volatility Index back above 15.

The S&P 500 was down 9.77 percent to close at 1646.06. That is the lowest close since July 8 and broke another level of support. Resistance is at 1700 and support at 1600.

The Nasdaq 100 lost 4.15 points, or 0.14 percent, to finish at 3069.75. It has held up better than its peers and was positive for much of the day. It has resistance at 3100 and first support at 3030.

The Russell 2000 lost 11.05 points, or more than 1 percent, to end at 1013.25. It is closely following the SPX at this time. Like the SPX and NDX, the small-cap index steadily fell through the afternoon and finished at session lows. It has resistance at 1055 and support at 1000.

The VIX was up 0.73 points, or 5.08 percent, to 15.10. The implied-volatility index was just off its high of the day, which came just before the bell. It remains significantly higher than actual volatility, as the 10- and 20-day historical volatility readings for the SPX are both around 8 percent.

The VIX futures followed higher. The August futures, which only have one day left to trade before settlement, were up 0.60 points to 15.05. The September futures gained 0.35 points to close at 15.95. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 2.81 percent to $15.39.
Share this article with your friends


Related Stories

VIX

Videocast: How to hedge volatility

September 3, 2015

Russell Rhoads of the CME explains the pros and cons of leveraged exchange-traded funds that are based on VIX futures.

VIX

Video: What the VIX 'curve' shows

September 2, 2015

The CBOE's Russell Rhoads says nearer-term VIX futures are above the later contracts in what's known as "backwardation," indicating that higher volatility may not end right away.

VIX

Video: What VIX pits are seeing

September 1, 2015

Traders were buying VIX calls above the 40 level early in the session, but Group One's Mike Palmer says that activity quickly pulled back.

VIX

Video: Whipsaw moves in the VIX

August 31, 2015

Group One's Mike Palmer explains why the volatililty index saw broad swings right before and after the weekend. Traders are now focused on today's close.

VIX

Videocast: Volatility in September?

August 20, 2015

Group One's Jamie Tyrrell says traders are buying next month's calls on the volatility index, bracing against a pullback in the S&P 500.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Options Academy: On Options Strategies in General

Before we hop into the different option strategies, I have a few thoughts for you to remember concerning the strategies and our use of them.

View more education articles »