VIX falls back under 20; futures follow
Chris McKhann | firstname.lastname@example.org
The CBOE Volatility Index ended yesterday back below the 20 level.
The volatility index ended the day at 19.72, down 0.66 points, or 3.24 percent. The S&P 500 gained 6.27 points to settle at 1319.99, coming off its highs in the last hour. The two indexes typically move inversely.
The VIX futures followed the spot volatility index. The July futures were down 0.75 points, or 3.34 percent, to 21.70 as the August futures fell 0.6 points to 23.65.
The VIX options traded 206,000 contracts, including 125,000 calls. The iPath S&P 500 VIX Short-Term Futures ETN (VXX) saw more than 83,000 contracts change hands, with calls slightly outpacing puts.
Video: What the VIX 'curve' shows
September 2, 2015
The CBOE's Russell Rhoads says nearer-term VIX futures are above the later contracts in what's known as "backwardation," indicating that higher volatility may not end right away.
Video: What VIX pits are seeing
September 1, 2015
Traders were buying VIX calls above the 40 level early in the session, but Group One's Mike Palmer says that activity quickly pulled back.
Video: Whipsaw moves in the VIX
August 31, 2015
Group One's Mike Palmer explains why the volatililty index saw broad swings right before and after the weekend. Traders are now focused on today's close.
Videocast: Volatility in September?
August 20, 2015
Group One's Jamie Tyrrell says traders are buying next month's calls on the volatility index, bracing against a pullback in the S&P 500.
Videocast: VIX draws September buyers
August 19, 2015
Group One's Jamie Tyrrell says large electronic buy programs are snapping up crash protection in the volatility index.