OptionsHouse

Options Trading News

February 7, 2013  Thu 1:16 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equity indexes closed mixed yesterday, but the CBOE Volatility Index collapsed in the final two hours of trade.

The S&P 500 ended the day up 0.83 points to close at 1512.12. The SPX spent most of the day in the red but climbed late in the afternoon, nearly matching its midday highs. The resistance at 1515 holds for now, while the first level of support should be around 1490.

The Nasdaq 100 was down on the day, giving up 8.64 points to close at 2746.35. It did bounce off the lows in the afternoon but was unable to regain its midday highs. It has resistance at 2770 and a first level of support at 2700.

The Russell 2000 gained 3.07 points to 911.29, an all-time closing high. The small-cap index has support at 895 and then 875.

The VIX fell sharply in the late afternoon, giving up 1.26 points, or 8.6 percent, to finish at 13.41. It had been up above 14 about two hours before the close. The February and March futures were both down 0.25 points to 14.15 and 15.35 respectively. That left the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 0.5 percent to 23.55.

The VIX options changed hands 457,000 times, with calls just outpacing puts. The VVIX Index, which measures the implied volatility of the VIX options, was up 2.9 percent to close at 77.24.
Share this article with your friends


Related Stories

VIX

Videocast: Selling VIX April calls

March 31, 2015

With volatility down from last week's spike higher, Group One's Jamie Tyrrell says traders are selling April calls that had been purchased in large volume.

VIX

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.

VIX

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.

VIX

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.

VIX

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.

Invest Like a Monster - San Diego: June 26-27

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Short Gamma

Last week, we talked about long Gamma. We said that long gamma is acquired by purchasing options and when you...

View more education articles »