OptionsHouse

Options Trading News

July 9, 2013  Tue 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Further gains in the major equity indexes drove volatility lower again.

The S&P 500 rose 8.57 points to 1640.46, its highest close since June 18. The SPX has been on a run since  bouncing off 1560 two weeks ago. Resistance is at 1652 and 1670, while support is at 1573.

The Nasdaq 100 gained 2.91 points to finish at 2966.13. The index has seen a similar pattern that of the S&P 500. Resistance is at 3000 and support at 2900.

The Russell 2000 was up 3.86 points to post a record closing high of 1009.24. Support is at 980.  

The CBOE Volatility Index fell 0.11 points to 14.78, its lowest close since May 30. That is especially interesting because the VIX usually shows relative strength on Mondays, reflecting the weekend time decay in the SPX options on which the volatility index is based.

The VIX futures declined across the board, with the July contracts losing 0.60 points to close at 15.35 and the August futures down 0.70 points to 16.75. This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 4.46 percent to $18.21. It has closed lower only once, on May 17 at $18.03.

The VXX options once again outpaced those of the VIX, taking the No. 3 spot in total option volume with 448,000 contracts, 256,000 of which were calls. The VIX options turned over 357,000 times, with 197,000 calls. The VVIX Index, which measures the implied volatility of those VIX options, was down 2.5 percent to 75.49--not far off its all-time low from February.
Share this article with your friends


Related Stories

VIX

Videocast: VIX action 'wishy washy'

January 29, 2015

After the VIX soared late yesterday, Group One's Jamie Tyrrell says today's volatility trading is "wishy washy" as the pits try to decide which way the market is heading.

VIX

Videocast: April call spread in VIX

January 28, 2015

Low volumes persist in volatility trading, but Group One's Jamie Tyrrell says one trader is buying a VIX April 18/25 call ratio spread.

VIX

VIX rises as equities fall on earnings

January 28, 2015

Equity indexes lost ground after a slew of disappointing earnings reports but did finish off the lows of the session. The CBOE Volatility Index gained nearly 11 percent.

VIX

Videocast: Traders buying VIX calls

January 27, 2015

Group One's Mike Palmer says one large trader is buying VIX February 26 calls, but volume is slow because of the big storm.

VIX

Volatility falls as equities end mixed

January 27, 2015

The major equity indexes finished yesterday mixed after climbing off morning lows, while the CBOE Volatility Index fell nearly 7 percent.

Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Archived Webinar

Option Money Machine Winter Classic

Education & Strategy

The rolling technique

In the January 7th edition of Advantage Point, we initiated the purchase of a second week-out GOOGL 535 put at...

View more education articles »