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

Videocast: Reversal in VIX pits

April 24, 2014

Group One's Jamie Tyrrell says traders rushed to buy May and June calls when stocks fell early today, but the activity quickly subsided as the market has calmed down.

VIX

Equities break six-day win streak

April 24, 2014

The Nasdaq 100 led the major indexes lower yesterday, but the CBOE Volatility Index posted only a fractional gain.

VIX

Videocast: Traders sell VIX calls

April 23, 2014

Group One's Jamie Tyrrell says traders are "selling the possibility of a big move" in the VIX in the next few weeks, led by a large sale of May 18 calls.

VIX

Stock indexes climb to key levels

April 23, 2014

Equity indexes extended their winning streak to six sessions yesterday, bringing them to key technical levels while pushing the CBOE Volatility Index lower.

VIX

Videocast: VIX sellers trump buyers

April 22, 2014

Group One's Jamie Tyrrell says sell orders have overwhelmed purchases, most notably a May 20/30 call spread sold 30,000 times.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Options and high-frequency trading

There has been much talk lately of high-frequency trading (HFT) and what it does--or doesn't--mean to the markets and retail...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER