VIX falls below 14 as S&P rises again
Chris McKhann | firstname.lastname@example.org
Equity indexes ended yesterday mixed, while the CBOE Volatility Index and its futures tumbled again.
The S&P 500 was up 5.14 points to close at its session high of 1689.13. It was negative for the first couple of hours before climbing out of its hole. It has resistance at 1700 and support at 1627.
The Nasdaq 100 was down 5.21 points to 3179.86. It dipped to 3160, weighed down by Apple, but also closed at its high of the day. The NDX has resistance at Tuesday's high of 3189 and support at 3060.
The Russell 2000 was off 0.38 points to 1055.34, the middle of its range for the day. The small-cap index has resistance at its high of 1063 and support at 1010.
The VIX fell 0.71 points, or 4.89 percent, to close at the session low of 13.82. The 20-day actual volatility of the S&P 500 is still above 11 percent, so the VIX's premium is quite low.
The VIX futures followed lower. Both the September and October futures were down 0.6 to 14.55 and 15.75 respectively. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 3.18 percent to $14.47.
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Group One's Jamie Tyrrell says one large player purchased 140,000 July 18 calls in the VIX, adding to heavy upside buying earlier in the week.
Video: Heavy June VIX call action
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A day after the May VIX contracts settled at 12.80, Group One's Jamie Tyrrell says 250,000 June calls changed hands.
Video: VIX June 17-18 call action
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Following this morning's May contract settlement, Group One's Dominic Savino says traders are now targeting the VIX June 17 and 18 calls.
Video: VIX going into expiration
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Group One's Jamie Tyrrell says traders are expecting a quiet May settlement tomorrow morning but are active in the June contracts.
Video: Low premium in May VIX
May 18, 2015
Group One's Jamie Tyrrell says VIX options are showing little premium levels ahead of the May settlement on Wednesday morning.