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

Video: Near-term VIX calls purchased

February 5, 2016

Group One's Jamie Tyrrell says volatility traders had been looking farther out but are now picking up February 28 calls.

VIX

Videocast: Huge VIX call spread sold

February 4, 2016

As the market continues to churn, Group One's Jamie Tyrrell says today's big trade is the sale of a VIX March 30/40 call spread 115,000 times.

VIX

Videocast: Big March call spread in VIX

February 3, 2016

As the market pulled back this morning, Group One's Jamie Tyrrell says a major player bought a March 30/40 call spread 150,000 times.

VIX

Video: VIX traders buying March calls

February 2, 2016

As volatility rises with today's market decline, Group One's Jamie Tyrrell says traders are purchasing the VIX March 30 and 35 calls.

VIX

Video: VIX traders split on next move

February 1, 2016

With the market pausing after last week's rallies, Group One's Jamie Tyrrell says traders are buying both March 15 puts and Weekly 20 calls.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

How to Defend Your Portfolio and Profit in a Market Selloff

http://bit.ly/1OSMWU6

Jon Najarian and Sandy Chaikin of Chaikin Analytics demonstrate how to play defense when the market is selling off. And, how to turn misery into money, whether investing in stocks or trading options.

Education & Strategy

The sweet spot

When using the Stock Replacement Strategy, we must remember that in reality, we are doing a STOCK trade. We are just using options. We are replacing the stock position with an option position (long calls).

View more education articles »