VIX climbs as stocks reverse lower
Chris McKhann | email@example.com
The equity indexes gave up a bit of ground yesterday after a string of record rallies, pushing the CBOE Volatility Index and it futures higher.
The S&P 500 finished the day at 1626.67, giving up 6 points. It hit a new intraday high of 1635.01 in the early afternoon but slid from there. That session high could be resistance, while support is at 1587.
The Nasdaq 100 was down 7.12 points to 2961.11. The NDX hit a 13-year intraday high in the afternoon, climbing above 2980. That session peak could be resistance, with support at 2864.
The Russell 2000 slipped 4.15 points to 966.26. The small-cap index briefly broke above 970, a new intraday high. It has support at 936.
The VIX was up 0.47 points, or 3.71 percent, to 13.13. It traded as high while 13.53 as the S&P 500 dropped, as the two indexes usually move inversely. The VIX remains at a discount to the 20-day historical volatility for the SPX, which is 14.6 percent.
The May VIX futures gained 0.15 points to close at 14.15, and the June futures were up 0.20 points to 15.30. This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 1.8 percent to end the day at $18.64 after breaking above $19 as the volatility index peaked.
Videocast: Huge call spread in VIX
August 4, 2015
Group One's Jamie Tyrrell says a major player bought the VIX August 16/18 call spread 300,000 times yesterday and sold August 12.50 puts to help finance the trade.
Video: 3-way play for higher VIX
August 3, 2015
The volatility index is little-changed even with the market lower today, but Group One's Jamie Tyrrell says one September three-way strategy is looking for a spike higher.
Video: VIX drop lures call buyers
July 31, 2015
With the spot volatility index slipping below 12 today, Group One's Jamie Tyrrell says traders are buying the VIX August 12 calls while premiums are relatively low.
Videocast: VIX put selling pays off
July 30, 2015
The VIX is little-changed today, and Group One's Jamie Tyrrell explains how recent put selling has paid off for volatilty traders.
Video: Case study in VIX pullback
July 29, 2015
Group One's Jamie Tyrrell says the volatility index's move down in the last week illustrates just how quicly the VIX can fall as well as rise.