Options Trading News

September 6, 2012  Thu 12:45 AM CT

The CBOE Volatility Index, its futures, and the S&P 500 all ended down yesterday as we head into several days of market-moving news.

The VIX fell 0.24 points, or 1.3 percent, to close at 17.74. It was lower all day as the SPX dipped into negative territory on several occasions before finishing down 1.5 points to 1403.44. The two indexes typically move inversely.

The VIX futures were lower as well. The September futures were down 0.50 points, or 2.7 percent, to 18.15. The October and December futures were both down 0.40 points to 20.35 and 22.15 respectively.

While implied volatility came down slightly, they all continue to carry huge premiums to actual volatility. The 20-day historical volatility remains at a 52-week low of 6.25 percent.

More than 330,000 VIX options traded on the day, 242,000 of which were calls. The iPath S&P 500 VIX Short-Term Futures ETN (VXX) saw 195,000 options change hands, with calls outpacing puts by 2 to 1.
Share this article with your friends

Related Stories


Video: VIX traders sell premium

November 25, 2015

As activity slows the day before Thanksgiving, Group One's Jamie Tyrrell says traders are selling December 21 calls.


Video: Big call spreads in the VIX

November 24, 2015

After the VIX Weekly contracts settled at 16.56 this morning, Group One's Jamie Tyrrell says today's big trades are December and February call spreads.


Video: Complex January call play

November 23, 2015

As volume slows this Thanksgiving week, Group One's Jamie Tyrrel says the largest trade today is buying the January 19 calls and selling the January 24 and 26 calls.


Video: Will VIX hold at 16 level?

November 20, 2015

The spot volatility index is dropping below 16 today, but Group One's Jamie Tyrrell says one large put seller does not expect the VIX to go much lower.


Video: VIX call buying accelerates

November 19, 2015

Group One's Jamie Tyrrell says heavy VIX call buying continues to mount this week, with 96,000 December 27 contracts purchased today.


Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »