OptionsHouse

Options Trading News

December 4, 2012  Tue 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
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

VIX

Videocast: Volatility in September?

August 20, 2015

Group One's Jamie Tyrrell says traders are buying next month's calls on the volatility index, bracing against a pullback in the S&P 500.

VIX

Videocast: VIX draws September buyers

August 19, 2015

Group One's Jamie Tyrrell says large electronic buy programs are snapping up crash protection in the volatility index.

VIX

Videocast: VIX premiums down before expiry

August 18, 2015

Group One's Jamie Tyrrell says premium is getting sucked out of on volatility index calls on their last full day of trading.

VIX

Videocast: The VIX at crossroads

August 7, 2015

The volatility index has seen broad swings with the market today, and Group One's Jamie Tyrrell says traders think that the VIX can go either way from here.

VIX

Video: Put buyer bucks pop in VIX

August 6, 2015

Volatility is jumping with today's market declines, but Group One's Jamie Tyrrell says a large player continues to bet that the VIX will fall below 12.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »