VIX down as equities erase losses
Chris McKhann | firstname.lastname@example.org
Equity indexes ended last week with a strong rebound from Thursday's selloff, driving the CBOE Volatility Index back below 13.
The S&P 500 was up 23.46 points to finish at 1770.61. That was its second-highest close and made up for Thursday's losses. It has support at 1720. (When equity indexes are at highs, further resistance levels are obviously projections not based on previous trading patterns. We therefore will refrain from listing any.)
The Nasdaq 100 was up 45.53 points to 3366.84. Resistance is at 3408 and support at 3300.
The Russell 2000 gained 20.89 points to close 0.03 points shy of 1100. That too was enough to regain Thursday's losses, though was not the high of the week. The small-cap index has resistance at 1123 and support at 1043.
The VIX was down 1.01 points, or 7.26 percent, to 12.90. That was just a fraction above its session low, as the volatility index lost ground all day.
The VIX futures fell slightly. Both the November and December futures were down 0.10 points, to 13.60 and 14.85 respectively. The iPath S&P 500 VIX Short-Term Futures Note (VXX) was down 2.18 percent to 48.62, a new all-time closing low.
Video: Traders see elevated VIX
October 5, 2015
Even with the volatility index falling below 20 today, Group One's Jamie Tyrrell says traders are buying calls and selling puts in the VIX.
Videocast: Target 35 level in VIX
October 2, 2015
Group One's Jamie Tyrrell says traders are targeting the 35 level for the volatility index in October, November, and December contracts.
Video: Traders sell VIX premium
October 1, 2015
Although the spot VIX remains elevated, Group One's Jamie Tyrrell says implied volatility is "pretty normal" for October.
Video: Sharp moves seen in VIX
September 30, 2015
Group One's Jamie Tyrrell says an October 23.50 straddle traded for about $5, indicating that a big move is expected in volatility levels.
Video: Big trades sell calls in VIX
September 29, 2015
Group One's Jamie Tyrrell says two big trades today are selling October 22 calls and closing a December 20/35 call spread.