Options Trading News

October 9, 2012  Tue 12:14 AM CT

The gap narrowed between the CBOE Volatility Index and the VIX futures as the major stock indexes gave up more ground yesterday.

The VIX finished at 15.11, up 0.78 points, or 5.44 percent on the day. It closed a big of the gap to the October futures, which gained 0.20 points to 15.95. The November futures were up 0.15 points to 17.40.

The SPX and VIX options each traded about 258,000 contracts. Calls led the VIX options with 140,000 contracts, while puts made up the majority of the SPX volume with 170,000.

The S&P 500 gave up 5.05 points to end the day at 1455.88. Resistance remains at 1471 and support at 1438.

The Nasdaq 100 lost 25.02 points to close at 2786.92. It appears to be completing a bearish "head and shoulders" top pattern with a potential downside target of 2680. Resistance is 2851 and support is 2780.

The Russell 2000 index fell 4.45 points to close at 838.41. Resistance for the small-cap index is 856 and support is 832.
Share this article with your friends

Related Stories


Video: VIX traders sell premium

November 25, 2015

As activity slows the day before Thanksgiving, Group One's Jamie Tyrrell says traders are selling December 21 calls.


Video: Big call spreads in the VIX

November 24, 2015

After the VIX Weekly contracts settled at 16.56 this morning, Group One's Jamie Tyrrell says today's big trades are December and February call spreads.


Video: Complex January call play

November 23, 2015

As volume slows this Thanksgiving week, Group One's Jamie Tyrrel says the largest trade today is buying the January 19 calls and selling the January 24 and 26 calls.


Video: Will VIX hold at 16 level?

November 20, 2015

The spot volatility index is dropping below 16 today, but Group One's Jamie Tyrrell says one large put seller does not expect the VIX to go much lower.


Video: VIX call buying accelerates

November 19, 2015

Group One's Jamie Tyrrell says heavy VIX call buying continues to mount this week, with 96,000 December 27 contracts purchased today.



The fastest money in the market
View full report »

Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »