OptionsHouse

Options Trading News

October 9, 2012  Tue 12:14 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
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

VIX

Videocast: VIX calls target 2008 level

February 11, 2016

Group One's Mike Palmer says at least one trader is buying VIX May 70 calls, looking for levels not seen since September 2008.

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.

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 »