Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 9, 2013  Wed 1:16 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
It was another day of red, with stocks and the CBOE Volatility Index closing lower.

The S&P 500 was down 4.74 points to close at 1457.15. The index had been as low as 1452 before midday but steadily climbed through the afternoon. Support remains at 1420 and resistance at 1475.

The Nasdaq 100 was down 5.5 points to 2718.72. It followed the same pattern as the SPX, falling below 2704 and then regaining much of that ground. Support and resistance remain at 2670 and 2785 respectively.
 
The Russell 2000 lost just 1.10 points to finish at 874.7, only about 5 points off last week's all-time high. A first level of support will likely be around 853, while resistance is at 880.

The VIX and the SPX usually move inversely, but yesterday the volatility index fell along with the stock market. It was down 0.17 points, or 1.23 percent, to close at its session low of 13.62 after spending much of the morning above 14.

The only time the VIX closed lower in the last five years was on Aug. 17. But that was before a weekend, which has a depressing effect on the volatility index.

The VIX futures finished the day mixed. The January contracts fell 0.10 points to 14.65, but both the February and March futures were up 0.05 points, to 16.59 and 18 respectively.

The action left the iPath S&P 500 VIX Short-Term Futures ETN (VXX) lower again. It set another all new low of 27.09 and a record low close at 27.18, down 1.24 percent.

The VIX options were second on the total volume list with another strong day at 736,000, led by more than 536,000 calls. The VVIX Index, which measures the implied volatility of the VIX options, was up 2 percent to 78.37.
Share this article with your friends


Related Stories

VIX

Videocast: VIX pits quiet down

August 29, 2014

Despite persistent geopolitical issues, Group One's Jamie Tyrrell says volatility trading is slow ahead of the three-way weekend.

VIX

VIX above 12 as equities rebound

August 29, 2014

Equity indexes finished yesterday lower but regained much of the ground lost early in the session. The CBOE Volatility Index rose back above the 12 level but was well off its high of the day.

VIX

Videocast: Big buyer in VIX puts

August 28, 2014

As the market cuts its early losses, Group One's Jamie Tyrrell says the big VIX trade of the day is a purchase of September puts.

VIX

S&P 500 ekes out new record high

August 28, 2014

Equity indexes closed almost unchanged on light volume and low volatility yesterday, but the S&P 500 was able to eke out a new closing high.

VIX

Videocast: Low volume in VIX pits

August 27, 2014

Group One's Jamie Tyrrell says volume is low in the VIX pits as one large player appears to done buying upside calls.

Premium Services

Education & Strategy

It's all skewed up

Most new option traders know little about implied volatility, and learn the hard way. Today we want to help you...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER