Options Trading News

April 9, 2013  Tue 1:16 AM CT

Major equity indexes bounced yesterday, driving the CBOE Volatility Index and its futures lower.

The S&P 500 finished the day down almost 10 points, closing at 1563.07. That brings it back to its range from last Wednesday. The SPX slipped below 1549 in the first hour and then climbed from there, ending at the high of the day. Resistance is at 1573 and support at 1539.

The Nasdaq 100 gained 14 points to close at 2786. The NDX was below 2745 right at the open, and it too finished at the high of the day. Resistance is at 2828 and support at 2745.

The Russell 2000 had the best percentage gain, picking up 8.21 points, or 0.89 percent, to finish at 931.49. The small-cap index dipped below 910 at the open, and that will be support going forward. Resistance remains at 954.

The action drove the VIX down 0.73 points, or 5.24 percent, to 13.19. It had climbed to 14.50 in the first hour of the session and finished at its low of the day.

The April VIX futures were down 0.75 points to 13.60, while the May futures lost 0.45 points to close at 15.05. This left the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 2.8 percent to 19.55, yet another new all-time low.

The VIX options traded 369,000 contracts, making it second on the overall volume list. Calls outpaced puts by 2 to 1.

The VVIX, which measures the implied volatility of the VIX options, was down 2.8 percent to 82.12. The VXX, meanwhile, saw 302,000 options change hands, with 165,000 puts. 
Share this article with your friends

Related Stories


Video: VIX traders sell premium

November 25, 2015

As activity slows the day before Thanksgiving, Group One's Jamie Tyrrell says traders are selling December 21 calls.


Video: Big call spreads in the VIX

November 24, 2015

After the VIX Weekly contracts settled at 16.56 this morning, Group One's Jamie Tyrrell says today's big trades are December and February call spreads.


Video: Complex January call play

November 23, 2015

As volume slows this Thanksgiving week, Group One's Jamie Tyrrel says the largest trade today is buying the January 19 calls and selling the January 24 and 26 calls.


Video: Will VIX hold at 16 level?

November 20, 2015

The spot volatility index is dropping below 16 today, but Group One's Jamie Tyrrell says one large put seller does not expect the VIX to go much lower.


Video: VIX call buying accelerates

November 19, 2015

Group One's Jamie Tyrrell says heavy VIX call buying continues to mount this week, with 96,000 December 27 contracts purchased today.


Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »