VIX below 17 as stocks extend streak
Chris McKhann | email@example.com
More gains in the major equity indexes yesterday made for the market's best three-day run in 2013.
The S&P 500 was up just shy of 10 points, or 0.62 percent, to close at 1613.20. Earlier in the session it peaked at 1620, the 20-day moving average, but found resistance there and pulled back. It has further resistance at 1652 and support at 1560.
The Nasdaq 100 was up 13 points, or 0.45 percent, to 2906.84. It has resistance at 3000 and support at 2825.
The Russell 2000 gained 16 points, or 1.67 percent, to finish at 979.92 as it led the other indexes in percentage gains. It resistance at 1000 and support at 943.
The CBOE Volatility Index continued its slide, giving up 0.35 points, or 2 percent, to finish at 16.86. The VIX touched 16.34 in the morning and vacillated from there. It remains at a discount to actual volatility in the S&P 500.
The VIX futures fell more than the spot volatility index. The July VIX futures shed 0.65 points to finish at 18.20, and the August contracts gave up 0.55 points to close at 19.05. This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 4 percent to $20.81.
Video: Traders unload puts in VIX
July 28, 2015
As the market rallies today, Group One's Jamie Tyrrell says traders are selling August 14 and 14.50 VIX puts in the belief that downside will be limited.
Video: Call buyers ride pop in VIX
July 27, 2015
With the spot volatility index jumping well above 15 today, Group One's Jamie Tyrrell says VIX call buyers are targeting the 20 strike in August and September.
Video: Steady buying in VIX calls
July 24, 2015
With the market down again today, Group One's Jamie Tyrrell says traders are snapping up calls in August, September, and October.
Video: August VIX calls pick up
July 23, 2015
Group One's Jamie Tyrrell says traders are buying VIX calls again today, with the largest purchase in the August 18 contracts.
Videocast: July VIX settles at 12.82
July 22, 2015
With this morning's July expiration out of the way, Group One's Jamie Tyrrell says traders are buying the VIX August 18 and 22 calls.