Learn the trade here. Make it on tradeMONSTER

Options Trading News

February 14, 2013  Thu 1:16 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The CBOE Volatility Index closed higher along with major equity indexes, bucking their usually inverse relationship.

The S&P 500 was up less than 1 point to 1520.33. The SPX dipped to its session low just under 1516 with about an hour left to trade but climbed sharply into the close. The index hit another new five-year intraday high of 1524.69 in the morning and has support at 1495.

The Nasdaq 100 was up 11.15 points, or 0.4 percent, to 2773.77. The NDX peaked at 2783 in the morning, its highest level since mid-October. Support remains at 2715.

The Russell 2000 was up 3.06 points, or 0.33 percent, to 920.58. That was just off its intraday high from the morning but still marks another new all-time closing record. Support remains at 894.

The VIX rose 0.34 points, or 2.69 percent, to 12.98. It spent most of the afternoon above 13. Although the volatility index is relatively low, it is still below the S&P 500's 20-day historical volatility of 8 percent.

The February VIX futures settled in the morning at 13.07. The now front-month March contracts finished the day at 14.75, while the April futures finished trading at 15.75. This pushed the iPath S&P 500 VIX Short-Term Futures Note (VXX) up fractionally to 22.49.

More than 747,000 VIX options traded on the day, led by 594,000 calls. The VVIX Index, which measures the implied volatility of the VIX options, was actually lower by 0.8 percent to finish the day at 73.25.
Share this article with your friends


Related Stories

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.

VIX

VIX finishes wild session above 26

October 16, 2014

Equity indexes rebounded off the midday lows to finish mixed yesterday, ending a wild ride that sent the CBOE Volatility Index to its highest level in almost three years.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Analyzing a bipolar market

Economics hinges on the tenet that people, including investors and traders, act rationally and in their own best interests. But...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER