OptionsHouse

Options Trading News

December 21, 2012  Fri 1:16 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The CBOE Volatility Index finished higher yesterday even as the stock market rallied, bucking the typically inverse relationship between the VIX and the S&P 500.

The SPX rose 7.88 points to close at its session high of 1443.69 after trading as low as 1433 in the early minutes of the day. Support and resistance remain at 1414 and 1461 respectively.

The Nasdaq 100 gained just 2.56 points to finish at 2693.55. It spent most of the day in negative territory but reached a high near 2700 with about an hour left to trade. That 2700 level may now be resistance again, while probable support is at 2620.

The Russell 2000 also finished at the high of the day, gaining 4.60 points to 852.49, almost exactly matching the percentage gain for the SPX. The small-cap index has support at 820 and resistance at 860.

The VIX finished the day up 0.31 points at 17.67 after hitting a high of 17.96 just minutes before the close. The VIX futures followed suit, with the January contracts up 0.40 points to 17.50 and the February futures up 0.20 points to 18.10. The VIX futures volume has been on record-setting pace this week.

More than 538,000 VIX options traded on the day, led by 338,000 calls. Despite that action and the higher VIX, the VVIX Index, which measures the implied volatility of the VIX options, was down fractionally to 83.06.
Share this article with your friends


Related Stories

VIX

Videocast: VIX call buying returns

April 27, 2015

Group One's Jamie Tyrrell says upside VIX buyers are back after taking a break last week, today opening a May 16/21 call spread 32,000 times.

VIX

Videocast: VIX premiums fall more

April 24, 2015

As the market continues its rally today, Group One's Jamie Tyrrell says demand for upside VIX contracts falls off the cliff.

VIX

Videocast: Cheap protection in VIX

April 23, 2015

With the spot VIX and its futures falling today, Group One's Jamie Tyrrell says traders are coming back to buy protection with premiums low.

VIX

Videocast: May call selling in VIX

April 22, 2015

Group One's Jamie Tyrrell says a big player who bought more than 100,000 May calls recently is starting to let go of those options.

VIX

Videocast: Surge in May VIX calls

April 21, 2015

Group One's Jamie Tyrrell says a major volatility trader is back accumulating VIX calls in the May 20 and 21 strikes.

OptionsHouse

Premium Services

Education & Strategy

Vega

There is another Greek which measures the effects on an option's price buy changing the amount of extrinsic value in the option, and that Greek is Vega...

View more education articles »