OptionsHouse

Options Trading News

October 17, 2013  Thu 1:16 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equity indexes were all higher yesterday Washington seemed to finally come to its senses with a budget agreement, sending the CBOE Volatility Index to one of its biggest drops ever.

The S&P 500 was up 23.48 points to finish the session at 1721.54, just a few ticks off its all-time closing high of 1725 set on Sept. 18. It now has support at 1660.

The Nasdaq 100 gained 37.01 points to 3281.67, its highest close in 13 years. It has support at 3150.

The Russell 2000 gained 12.80 points to a new all-time closing high of 1092.42. It has support at 1042.

(When equity indexes are at highs, further resistance levels are obviously projections not based on previous trading patterns. We therefore will refrain from listing any.)

The VIX plunged 3.95 points, or 21.17 percent, to 14.71--one of the top 10 percentage declines ever seen in the volatility index. It is now back to levels of Sept. 27, interestingly when the SPX was 30 points lower. The VIX is now below the short-term actual volatility, as the 10-day rate for the SPX is 17.5 percent.

The VIX futures followed lower, with the October contracts settled at the open at 17.21. The November futures fell 1.75 points to 15.55, and the December futures were down 1.10 points to 16.55. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 11.5 percent to $13.77.
Share this article with your friends


Related Stories

VIX

Video: Near-term VIX calls purchased

February 5, 2016

Group One's Jamie Tyrrell says volatility traders had been looking farther out but are now picking up February 28 calls.

VIX

Videocast: Huge VIX call spread sold

February 4, 2016

As the market continues to churn, Group One's Jamie Tyrrell says today's big trade is the sale of a VIX March 30/40 call spread 115,000 times.

VIX

Videocast: Big March call spread in VIX

February 3, 2016

As the market pulled back this morning, Group One's Jamie Tyrrell says a major player bought a March 30/40 call spread 150,000 times.

VIX

Video: VIX traders buying March calls

February 2, 2016

As volatility rises with today's market decline, Group One's Jamie Tyrrell says traders are purchasing the VIX March 30 and 35 calls.

VIX

Video: VIX traders split on next move

February 1, 2016

With the market pausing after last week's rallies, Group One's Jamie Tyrrell says traders are buying both March 15 puts and Weekly 20 calls.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

How to Defend Your Portfolio and Profit in a Market Selloff

http://bit.ly/1OSMWU6

Jon Najarian and Sandy Chaikin of Chaikin Analytics demonstrate how to play defense when the market is selling off. And, how to turn misery into money, whether investing in stocks or trading options.

Education & Strategy

The sweet spot

When using the Stock Replacement Strategy, we must remember that in reality, we are doing a STOCK trade. We are just using options. We are replacing the stock position with an option position (long calls).

View more education articles »