tradeMONSTER: Trade free for 90 days

Options Trading News

February 5, 2013  Tue 12:14 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The major equity indexes all gave up more than 1 percent yesterday to close at or near their session lows, sending the CBOE Volatility Index sharply higher.

The S&P 500 dropped back below 1500, giving up 17.46 points, or 1.15 percent. The SPX ended just above its intraday low at 1495.71, the index's first close below its 10-day moving average since the last day of 2012. Resistance is now 1514 and support at 1472.

The Nasdaq 100 finished at 2715.68, losing 48.28 points, or 1.75 percent. That was barely above its low of the day and was its lowest close of 2013. The NDX has resistance at 2770 and support at 2660.

The Russell 2000 fell 11.92 points, or 1.31 percent, to 899.28. It remains the strongest of the indexes and remains above its close from last Wednesday. Friday's all-time high just shy of 913 should be resistance for the time being, while support is around 880.

The VIX jumped 1.77 points, or 13.72 percent, to 14.67. That was just 0.01 points off its highest close from 2013, which came on the first trading day of the year.

The VIX February futures gained 0.95 points to close at 15.25, while the March contracts were up 0.50 points to 15.90. This pushed the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 6.24 percent to $24.54. The VIX futures and options both set record-high volumes in January.

The VIX options turned over 366,000 contracts on the day, with 203,000 calls. The VVIX Index, which measures the implied volatility of the VIX options, was up more than 6 percent to 77.79.
Share this article with your friends


Related Stories

VIX

Videocast: VIX January calls sold

December 19, 2014

Group One's Jamie Tyrrell says traders are selling premium in the front-month VIX contracts as volatility continues to decline.

VIX

VIX retreats as equities rally again

December 19, 2014

The major equity indexes continued to rebound and recover losses yesterday, pushing the CBOE Volatility Index down more than 13 percent.

VIX

Videocast: Huge bet on lower VIX

December 18, 2014

Group One's Jamie Tyrrell says a huge trade is looking for the VIX to fall in coming weeks, selling the January 20 calls and buying the 15 puts 90,000 times.

VIX

VIX below 20 as equities rebound

December 18, 2014

Equity indexes rallied hard yesterday, accelerating higher after the Fed's policy afternoon announcement to close just off session highs. The CBOE Volatility Index fell back below the 20 level.

VIX

Videocast: Premium selling in VIX

December 17, 2014

Group One's Jamie Tyrrell says there has been "a ton" of activity in January VIX contracts, with traders selling premium heavily.

tradeMONSTER: Trade free for 90 days

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER