VIX down even as SPX closes near lows
Chris McKhann | email@example.com
The CBOE Volatility Index fell yesterday even as the S&P 500 closed near its session lows. The VIX and the SPX usually move inversely.
The VIX finished at 21.72, down 0.44, or 1.99 percent on the day. It was just above 22 heading into the bell, but that was well below the morning highs.
The June VIX futures fell 1.5 percent to 23.05, down 0.35 points, while the July futures were declined 0.20 points to 25.30. The October through December futures all finished around the 28 level.
The VIX options had another big day with volume of more than 622,000 contracts, led by 375,000 calls. The iPath S&P 500 VIX Short-Term Futures ETN (VXX) saw 225,000 options trade, 120,000 of which were calls.
Videocast: Traders shift as VIX drops
May 17, 2013
As the volatility index falls with today's rally, GroupOne's Jamie Tyrrell says traders are no longer looking for crash protection in May contracts and are buying June VIX calls instead.
Videocast: View of VIX before settlement
May 16, 2013
GroupOne's Dominic Salvino, filling in for Jamie Tyrrell, says VIX traders are targeting the 13 or 14 level ahead of May settlement next week.
VIX rises even as SPX breaks record
May 16, 2013
Equities posted more gains yesterday, while the CBOE Volatility Index bucked its usually inverse relationship with the S&P 500 and rose along with stocks.
Videocast: Low premiums in volatility
May 15, 2013
GroupOne's Jamie Tyrrell says VIX premiums are surprisingly low, indicating that traders are not expecting much of a move before next week's May settlement.