Learn the trade here. Make it on tradeMONSTER

Options Trading News

March 12, 2013  Tue 1:16 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The CBOE Volatility Index dropped to its lowest level in nearly six years as equity indexes climbed again yesterday.
 
The S&P 500 added 5 points to end the session at 1556.22, its highest close since Oct. 12, 2007, the week of the its all-time high. That closing high, which is just 9 points away, will likely provide some resistance. The SPX opened the day lower but found support at 1548 and climbed from there, finishing at the day's highs. Support is at 1520.

The Nasdaq 100 was up 7.70 points to 2811.86, its highest close since Oct. 5, 2012. It fell to 2792 in the morning before heading higher. Resistance is at 2846 and support at 2750.

The Russell 2000 was barely higher, essentially unchanged at 942.51, though it still counts as a new all-time high. The small-cap index also set a new intraday high as it climbed to 942.62 mid-day. There is some resistance at 950, and support is at 915.

The VIX was down 1.03 points, or 8.2 percent, to 11.56. It fell all morning and held around 11.70, then collapsed into the close. The sizable loss was caused largely by the roll of the VIX's calculation, which dropped the March S&P 500 options.

The VIX futures followed suit, with the March contracts losing 0.80 points to finish at 13 even. The April futures were down 0.70 points to 14.40. This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 4.95 percent to 20.56, yet another new all-time low.

More than 732,000 VIX options traded on the day, with 415,000 calls. The VXX options turned over 286,000 contracts, with puts making up 175,000 of that volume. The VVIX Index, which measures the implied volatility of the VIX options, was up 0.9 percent to 77.32, above the lows of a month ago but still at the very low end of its range.
Share this article with your friends


Related Stories

VIX

What's next, the 'Cortisol Index'?

April 18, 2014

Most traders believe themselves rational and logical But all of the work done in behavioral economics has exposed our various psychological biases, which tend to hurt us in our investing.

VIX

Why you need to understand volatility

April 18, 2014

Volatility trading may sound like a complex and obscure strategy, but it is important because every option trade is also a volatility trade, whether intentional or not.

VIX

Videocast: Huge straddle in VIX

April 17, 2014

Group One's Jamie Tyrrell says one major player is opening the equivalent of a giant straddle in the May VIX contracts.

VIX

Equities extend streak; VIX near 14

April 17, 2014

The major equity indexes extended their winning streak to a third consecutive session yesterday, driving the CBOE Volatility Index back near 14.

VIX

Videocast: VIX pits focus on May

April 16, 2014

Now that the April contracts have settled, Group One's Jamie Tyrrell says traders are focusing on May options at the 16 level.

Premium Services

Education & Strategy

When cash is king (of hedging)

Whether your trades are winning or losing, it can be tempting to add to your positions. But in either case,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER