VIX falls below 14 as S&P rises again
Chris McKhann | email@example.com
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.
Videocast: Huge call spread in VIX
August 4, 2015
Group One's Jamie Tyrrell says a major player bought the VIX August 16/18 call spread 300,000 times yesterday and sold August 12.50 puts to help finance the trade.
Video: 3-way play for higher VIX
August 3, 2015
The volatility index is little-changed even with the market lower today, but Group One's Jamie Tyrrell says one September three-way strategy is looking for a spike higher.
Video: VIX drop lures call buyers
July 31, 2015
With the spot volatility index slipping below 12 today, Group One's Jamie Tyrrell says traders are buying the VIX August 12 calls while premiums are relatively low.
Videocast: VIX put selling pays off
July 30, 2015
The VIX is little-changed today, and Group One's Jamie Tyrrell explains how recent put selling has paid off for volatilty traders.
Video: Case study in VIX pullback
July 29, 2015
Group One's Jamie Tyrrell says the volatility index's move down in the last week illustrates just how quicly the VIX can fall as well as rise.