Options Trading News

May 23, 2013  Thu 1:16 AM CT

Equity indexes finally gave up some ground yesterday, pushing the CBOE Volatility Index and its futures higher.

The S&P 500 was down 13.81 points, or 0.83 percent, after opening the day by climbing to a new intraday high of 1687.18. It then saw significant volatility as it traded as low as 1648.86 before bouncing a bit into the bell. That 1687 level will likely be resistance, while support is at 1627.

The Nasdaq 100 lost 27.32 points, or 0.9 percent, to close at 2999.13. It followed a similar pattern, climbing as high as 3053.51. That price will be resistance, while support is at 2948.

The Russell 2000 had the worst percentage loss of 1.65 percent, or 16.52 points, to close at 982.26. It climbed to a new intraday high of 1008.23 and then gave up more than 30 points to the low shortly before the bell. That 1008 level will be resistance, while support is at 966.

The VIX was up 0.45 points, or 3.4 percent, to 13.82. It reached a high of 14.45 about 30 minutes before the bell and slipped from there. Those were the volatility index's highest levels since May 2, when the S&P 500 was 90 points lower. The VIX and the SPX usually move inversely.

The VIX futures were down at the end of the day after the May contracts settled on the open at 13.17. Both the June and July VIX futures gave up 0.10 points, to 15.30 and 16.40 respectively. But the iPath S&P 500 VIX Short-Term Futures Note (VXX), which comprises those two futures, was up 1.09 percent to $18.63.

The VIX options traded 766,000 contracts, led by 484,000 calls. The SPDR S&P 500 Fund (SPY) options topped yesterday's total option volume with 4.4 million contracts.
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.



The fastest money in the market
View full report »

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 »