OptionsHouse

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

Video: June VIX calls bought again

May 27, 2015

Even though the market has reversed course with today's rally, Group One's Jamie Tyrrell says traders are buying VIX June 18 calls for the second session in a row.

VIX

Video: Volatility measures jump

May 26, 2015

Group One's Jamie Tyrell says traders are buying June and July VIX calls with the spot index up 15 percent and the nine-day CBOE Short-Term Volatility Index (VXST) spiking 40 percent.

VIX

Video: Huge June VIX call buy

May 22, 2015

Group One's Jamie Tyrrell says one large player purchased 140,000 July 18 calls in the VIX, adding to heavy upside buying earlier in the week.

VIX

Video: Heavy June VIX call action

May 21, 2015

A day after the May VIX contracts settled at 12.80, Group One's Jamie Tyrrell says 250,000 June calls changed hands.

VIX

Video: VIX June 17-18 call action

May 20, 2015

Following this morning's May contract settlement, Group One's Dominic Savino says traders are now targeting the VIX June 17 and 18 calls.

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

Premium Services

Archived Webinar

Education & Strategy

Long synthetic call

Long and short Synthetic stock are two of the six basic synthetic positions that exist. Number three on our list is the Synthetic Long Call...

View more education articles »