OptionsHouse

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: Huge call spread in VIX

August 4, 2015

Group One's Jamie Tyrrell says a major player bought the VIX August 16/18 call spread 300,000 times yesterday and sold August 12.50 puts to help finance the trade.

VIX

Video: 3-way play for higher VIX

August 3, 2015

The volatility index is little-changed even with the market lower today, but Group One's Jamie Tyrrell says one September three-way strategy is looking for a spike higher.

VIX

Video: VIX drop lures call buyers

July 31, 2015

With the spot volatility index slipping below 12 today, Group One's Jamie Tyrrell says traders are buying the VIX August 12 calls while premiums are relatively low.

VIX

Videocast: VIX put selling pays off

July 30, 2015

The VIX is little-changed today, and Group One's Jamie Tyrrell explains how recent put selling has paid off for volatilty traders.

VIX

Video: Case study in VIX pullback

July 29, 2015

Group One's Jamie Tyrrell says the volatility index's move down in the last week illustrates just how quicly the VIX can fall as well as rise.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Stops

With the growing popularity of the Advantage Point newsletter, we are picking up new members every single day. So, the powers that be have asked me to stray away from our Option Theory and Strategy topics and discuss a couple of topics related to our weekly trade ideas. This week we are going to talk about how to set and execute our stops.

View more education articles »