VIX falls below 17 as equities rebound
Chris McKhann | email@example.com
Equity indexes regained some ground yesterday after the previous session's steep selloff, while the CBOE Volatility Index declined.
The S&P 500 rose 9 points to 149.94, just off the highs that came shortly before the bell. The SPX had fallen to 1485 just before noon and climbed from there. It still has resistance at 1525 and some support at 1485.
The Nasdaq 100 gained 12 points to 2713.02. It traded as low as 2690, which should provide some support, while resistance is at 2764.
The Russell 2000 was up 4.20 points to close at 900.05. It was down to 894, which should be first support. The resistance is 920.
The VIX finished the day down 2.12 points, or 11.16 percent, to 16.87. It was in the red all day and finished right at its session low.
The VIX futures were mixed. The March contracts down 0.65 points to 17 and the April futures off 0.25 points to 17.25, but the May futures were up 0.05 points to 17.60. Volume was again strong but well short of Monday's record 302,000 contracts.
More than 1.39 million VIX options changed hands, a huge volume day. Calls outpaced puts by more than 2 to 1. The VVIX Index, which measures the implied volatility of those VIX options, was down 4.4 percent to close at 90.23.
Videocast: VIX call wave subsides
March 30, 2015
Group One's Jamie Tyrrell says 250,000 VIX April 20 calls were purchased in the previous two sessions, but that big player appears to be on the sidelines with today's market rally.
Videocast: Big April VIX call buying
March 27, 2015
GroupOne's Jamie Tyrrell says a major player bought 150,000 April 20 calls late yesterday even as VIX futures fell.
Videocast: VIX not showing panic
March 26, 2015
Despite the market's downturn this week, Group One's Jamie Tyrrell says traders apparently do not believe that the VIX will hit the 20 level.
Videocast: April, August VIX calls
March 25, 2015
As the market selloff accelerates midday, Group One's Mike Palmer says traders are buying protection through VIX calls in April and August.
Videocast: Looking for higher volatility
March 24, 2015
Group One's Jamie Tyrrell says investors are buying upside calls in the VIX and selling puts, looking for the volatility index to push higher.