Options Trading News

March 21, 2013  Thu 1:47 AM CT

Equity indexes pushed higher yesterday, driving the CBOE Volatility Index and its futures lower.

The S&P 500 gained 10.37 points, or 0.67 percent, to finish at 1558.71. It was above 1561 at the day's high minutes before the closing bell. The SPX did not regain last week's highs but is just about 8 points off its all-time closing high. Resistance is at 1565 and support at 1525.

The Nasdaq 100 rose 18.64 points, also 0.67 percent, to 2805.91. It was above 2810 heading toward the bell, a resistance level that has held all month despite being tested several times. Above that there is resistance at 2846, while support is at 2760.

The Russell 2000 was up just shy of 1 percent, adding 9.10 points to end the session at 951.95. It closed at the high of the day and is about 1 point away from last week's all-time closing high. Support is at 930.

The VIX tumbled 1.72 points, or 11.95 percent, to 12.67. It was at the day's low of 12.30 just before the close.

The March VIX futures settled this morning at 12.46. The April futures fell 0.85 points to 14.55, while the May contracts slipped 0.35 points to 15.90. This pushed the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 5.27 percent to 20.44, a new all-time closing low.
More than 1.34 million VIX options changed hands, falling short of Tuesday's record day. But more than 1 million calls changed hands, which I believe is a new record. The action must have included quite a bit of selling, as the VVIX Index--which measures the implied volatility of those VIX options--was down more than 5 percent to 89.45.
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