Options Trading News

December 4, 2012  Tue 12:45 AM CT

Major equity indexes closed fractionally lower on the day, but the CBOE Volatility Index jumped again.

The S&P 500 was down 6.72 points to close at 1409.46. It jumped above 1423 at the open but then slid all day. Support and resistance remain unchanged at 1380 and 1428 respectively.

The Nasdaq 100 followed the same pattern. The NDX climbed above 2699 at the open but declined steadily for the rest of the day until it closed at 2671.51, down 6.04 points. Resistance at 2700 held up, while support is still 2600.

The Russell 2000 gave up a bit more than one point to close at 820.80. It surged at the open as well, getting up above 826, but did not close at its low of the day. Support is at 800 and resistance at 830.

The VIX was up 0.77 points, or 4.85 percent, to 16.64. Normally we would attribute at least part of that move to the fact that it was a Monday, when SPX options are repriced after the weekend time decay. But this was not necessarily the case because the December VIX futures gained 0.80 points to close at 16.35, while th January futures were up 0.55 points to 17.70.

More than 640,000 SPX options traded yesterday, led by 400,000 puts. The VIX options turned over 614,000 times, with calls outpacing puts by almost 3 to 1. The VVIX Index, which measures the implied volatility of the VIX options, was up 7 percent to 84.07 but remains near its lows.
Share this article with your friends

Related Stories


Videocast: Target 35 level in VIX

October 2, 2015

Group One's Jamie Tyrrell says traders are targeting the 35 level for the volatility index in October, November, and December contracts.


Video: Traders sell VIX premium

October 1, 2015

Although the spot VIX remains elevated, Group One's Jamie Tyrrell says implied volatility is "pretty normal" for October.


Video: Sharp moves seen in VIX

September 30, 2015

Group One's Jamie Tyrrell says an October 23.50 straddle traded for about $5, indicating that a big move is expected in volatility levels.


Video: Big trades sell calls in VIX

September 29, 2015

Group One's Jamie Tyrrell says two big trades today are selling October 22 calls and closing a December 20/35 call spread.


Video: Limited upside seen in VIX

September 28, 2015

Even as volatility jumps with today's market selloff, Group One's Jamie Tyrrell says traders are selling VIX calls in strikes above the 30 level.


Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »