OptionsHouse

Options Trading News

December 11, 2013  Wed 2:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equity indexes gave up a bit of ground yesterday, while the CBOE Volatility Index rose.

The S&P 500 was down 5.75 points to close at 1802.62, just off the session's lows. It has resistance at 1813 and support at 1775.

The Nasdaq 100 fell shy of 2 points to 3514.20, in the middle of a tight range in place all day. It has support at 3450. (When equity indexes are at highs, further resistance levels are obviously projections not based on previous trading patterns. We therefore therefore will refrain from listing any.)

The Russell 2000 dropped 10.15 points to 1119.59 as it continues to lag the other indexes and is back below its 20-day moving average. It has resistance at 1147 and support at 1100.

The VIX was up 0.42 points, or 3.11 percent, to 13.91. The volatility index recouped losses from Monday's late gap lower but then saw another big drop into yesterday's close.

The VIX futures were higher, with the December contracts finishing at 14.05 and the January futures at 14.85. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 0.54 percent to $45 even.
Share this article with your friends


Related Stories

VIX

Video: Huge VIX call spread in focus

February 10, 2016

Group One's Jamie Tyrrell says traders are taking both sides of the VIX March 30/50 call spread, with heavy volume at yesterday's close taking it to 500,000.

VIX

Video: Big call selling in volatility index

February 9, 2016

With the market "all over the map today," Group One's Jamie Tyrrell says traders are selling the VIX February 28 calls and the March 30/40 call spread.

VIX

Video: Call buyers chase spike in VIX

February 8, 2016

Group One's Jamie Tyrrell says traders are buying February calls in the VIX amid today's market drop, targing the 25 to 29 levels.

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.

OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »