Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 24, 2012  Wed 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The major equity indexes ended sharply lower yesterday as the CBOE Volatility Index jumped more than 13 percent.

The S&P 500 fared the worst of the big three indexes, losing 1.44 percent, or 20.71 points to close at 1413.11. That is its lowest close since Sept. 5, before it gapped higher. The SPX fell as low as 1407 during the session, which is now its first level of support. The next potential level down is 1397, while resistance is now at 1440 and then 1465.

The Nasdaq 100 was down 1.06 percent, or 28.54 points, to 2666.02. The NDX finished just above its morning low and had its lowest close since Aug. 2. Support is still at 2650 and resistance at 2715.

The Russell 2000 dropped only 0.53 percent, or 4.32 points, to close at 816.20. The RUT traded as low as 807 in the morning and climbed from there. Resistance remains at 846 while the index sits at its first support, with 807 as the next potential level down.

The VIX rose 2.21 points, or 13.3 percent, to finish the day at 18.83. It reached a high of 19.65 in the morning.

The November VIX futures followed the spot volatility index higher, rising 1.80 points to 19.15. The December futures gained 1.30 points to finish at 19.35.

More than 862,000 SPX options traded on the day, evenly split between calls and puts. That is unusual for such a large selloff, when we would normally expect puts to significantly outpace calls.

The VIX options turned over 458,000 times, 293,000 of which were calls. The VVIX Index, which measures the implied volatility of the VIX options, was up 7.76 percent to 99.66.
Share this article with your friends


Related Stories

VIX

Videocast: Volatility spike in VXST

October 1, 2014

Group One's Mike Palmer says the nine-day CBOE Short-Term Volatility Index (VXST), which was below the 10 level a month ago, settled today at 17.20.

VIX

VIX above 16 as stocks end mixed

October 1, 2014

The major equity indexes finished yesterday mixed while the CBOE Volatility Index continued higher, rising back above the 16 level.

VIX

Videocast: No panic for near term

September 30, 2014

Group One's Jamie Tyrrell says the nine-day CBOE Short-Term Volatility Index (VXST) is tumbling as Weekly contracts expire.

VIX

Equities close red but well off lows

September 30, 2014

Equity indexes closed in negative territory yesterday but were well off their lows. The CBOE Volatility Index finished just shy of 16.

VIX

Videocast: October VIX calls sold

September 29, 2014

Although volatility has risen with the market swings of the last week, Group One's Jamie Tyrrell says today's big trading is selling October VIX calls.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

How Can Equity Traders Beat the Algos

Education & Strategy

When to go in or out of the money

Some of our subscribers recently asked how to gauge positions that are in or out of the money, so I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER