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.
Video: Huge VIX call spread in focus
February 10, 2016
Group One's Jamie Tyrrell says traders are taking both sides of the VIX March 30/50 call spread, with heavy volume at yesterday's close taking it to 500,000.
Video: Big call selling in volatility index
February 9, 2016
With the market "all over the map today," Group One's Jamie Tyrrell says traders are selling the VIX February 28 calls and the March 30/40 call spread.
Video: Call buyers chase spike in VIX
February 8, 2016
Group One's Jamie Tyrrell says traders are buying February calls in the VIX amid today's market drop, targing the 25 to 29 levels.
Video: Near-term VIX calls purchased
February 5, 2016
Group One's Jamie Tyrrell says volatility traders had been looking farther out but are now picking up February 28 calls.
Videocast: Huge VIX call spread sold
February 4, 2016
As the market continues to churn, Group One's Jamie Tyrrell says today's big trade is the sale of a VIX March 30/40 call spread 115,000 times.