VIX rises as equities post losses
Chris McKhann | email@example.com
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.
Video: Traders unload puts in VIX
July 28, 2015
As the market rallies today, Group One's Jamie Tyrrell says traders are selling August 14 and 14.50 VIX puts in the belief that downside will be limited.
Video: Call buyers ride pop in VIX
July 27, 2015
With the spot volatility index jumping well above 15 today, Group One's Jamie Tyrrell says VIX call buyers are targeting the 20 strike in August and September.
Video: Steady buying in VIX calls
July 24, 2015
With the market down again today, Group One's Jamie Tyrrell says traders are snapping up calls in August, September, and October.
Video: August VIX calls pick up
July 23, 2015
Group One's Jamie Tyrrell says traders are buying VIX calls again today, with the largest purchase in the August 18 contracts.
Videocast: July VIX settles at 12.82
July 22, 2015
With this morning's July expiration out of the way, Group One's Jamie Tyrrell says traders are buying the VIX August 18 and 22 calls.