VIX rises along with equity indexes
Chris McKhann | firstname.lastname@example.org
Equities surged yesterday on optimism that a deal would be reached to raise the federal debt ceiling. The CBOE Volatility Index also gained, bucking its usual inverse relationship with the S&P 500.
The SPX rose 6.94 points to 1710.14, just off its high of the day. The benchmark index has closed higher only two other times, in mid-September. It has resistance at the all-time high of 1729 and support at 1647.
The Nasdaq 100 was up 22.19 points to 3256.02, a new 13-year closing high. It has support at 3120.
The Russell 2000 added 5.99 points to 1090.30, an all-time record high. It has support at 1040.
(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 was up 0.35 points, or 2.2 percent, to 16.07. It climbed to 17.74 during the morning selloff, then fell below 16 in the final minutes before regaining ground just before the close.
The VIX futures were also higher. The October contracts, which have only day left to trade, gained 0.20 points to close at 15.90. The November futures were up 0.25 points to close at 16.65. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 1.03 percent to $14.68.
Videocast: VIX going to Weeklies
May 28, 2015
Group One's Jamie Tyrrell says new VIX Weekly options will soon replacee available, replacing the nine-day CBOE Short-Term Volatility Index (VXST) contracts.
Video: June VIX calls bought again
May 27, 2015
Even though the market has reversed course with today's rally, Group One's Jamie Tyrrell says traders are buying VIX June 18 calls for the second session in a row.
Video: Volatility measures jump
May 26, 2015
Group One's Jamie Tyrell says traders are buying June and July VIX calls with the spot index up 15 percent and the nine-day CBOE Short-Term Volatility Index (VXST) spiking 40 percent.
Video: Huge June VIX call buy
May 22, 2015
Group One's Jamie Tyrrell says one large player purchased 140,000 July 18 calls in the VIX, adding to heavy upside buying earlier in the week.
Video: Heavy June VIX call action
May 21, 2015
A day after the May VIX contracts settled at 12.80, Group One's Jamie Tyrrell says 250,000 June calls changed hands.