Learn the trade here. Make it on tradeMONSTER

Options Trading News

April 17, 2013  Wed 1:47 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The CBOE Volatility Index fell back below the 14 level yesterday as equity indexes regained some of the ground lost in the steep selloff of the previous session.

The S&P 500 gained 22.21 points, or 1.43 percent, to close at its session high of 1547.57. It appears that the last week's range will now provide resistance and support, at 1597 and 1552 respectively.

The Nasdaq 100 had the same percentage gain as it picked up almost 41 points to close at 2838.41, also its high of the day. It too will have a range defined by the action of the last week. Resistance is at 2864 and support at 2800.

The Russell 2000 gained 16.12 points, or 1.78 percent, to close at 923.3. The small-cap index gained back just above half of Monday's losses. Resistance is at 950 and support at 905.  

The VIX was down 3.31 points, or 19.17 percent, to 13.96. That was essentially the low of the day and below the 10-day actual volatility of the SPX, which is now 17.6 percent.

The VIX futures followed the spot volatility index lower. It was the last day of trading for the April futures, which lost 2.75 points to close at 13.95 before this morning's settlement. The May futures were down 1.50 points to 14.70. This left the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 3.62 percent to 19.09.

More than 1.1 million VIX options traded on the day, led by 815,000 calls. The action was clearly driven by selling, as the VVIX Index, which measures the implied volatility of the VIX options, was down 15.7 percent to 88.19.
Share this article with your friends


Related Stories

VIX

VIX drops again as equities rally

October 21, 2014

All of the major equity indexes were higher yesterday, driving the CBOE Volatility Index lower by more than 15 percent.

VIX

Videocast: Volatility quieting down

October 20, 2014

As stocks drift higher after last week's selloff, Group One's Jamie Tyrrell says the big trades today are selling October VIX calls.

VIX

VIX falls as equities close mixed

October 20, 2014

Equity indexes were mixed on Friday to finish a volatile week, while the CBOE Volatility Index dropped nearly 13 percent.

VIX

Videocast: Volatility down big today

October 17, 2014

Group One's Jamie Tyrrell says the volatility index is back down near the 20 level in today's rally, with near-term futures getting "crushed."

VIX

Videocast: November VIX calls sold

October 16, 2014

Group One's Jamie Tyrrell says traders are holding onto protection for the next few days but are selling the November VIX calls, apparently believing that volatility levels are too elevated.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER