OptionsHouse

Options Trading News

May 16, 2013  Thu 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equities posted more gains yesterday, while the CBOE Volatility Index again climbed along with stocks.

The S&P 500 was up 8.44 points to 1658.78, another record closing high, after peaking at 1661.49 in midday trading. Support is at 1597.

The Nasdaq 100 gained 6.58 points to 3002.62. Despite the gains, it was unable to break above Tuesday's intraday high. Support is at 2898.

The Russell 2000 gained 2.58 points to 988.54. That too is a new record close, and it posted a new intraday high of 991.55 as well. Support is at 948.

The VIX was also higher, bucking its usually inverse relationship with the S&P 500, rising 0.04 points to 12.81. That was just a tick above the day's lows, as it was in positive territory all day. The volatility index peaked at 13.43 at the same time the SPX hit its high. It is at a substantial premium to the actual volatility, as the 10-day historical volatility for the SPX is down to 7.2 percent and the 20-day reading is 8.9 percent.

The VIX futures posted gains as well. The May futures were up 0.15 points to 13.70, while the June futures gained 0.10 points to close at 15.15. This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 0.82 percent to $18.35.
Share this article with your friends


Related Stories

VIX

Videocast: Big April VIX call buying

March 27, 2015

GroupOne's Jamie Tyrrell says a major player bought 150,000 April 20 calls late yesterday even as VIX futures fell.

VIX

Videocast: VIX not showing panic

March 26, 2015

Despite the market's downturn this week, Group One's Jamie Tyrrell says traders apparently do not believe that the VIX will hit the 20 level.

VIX

Videocast: April, August VIX calls

March 25, 2015

As the market selloff accelerates midday, Group One's Mike Palmer says traders are buying protection through VIX calls in April and August.

VIX

Videocast: Looking for higher volatility

March 24, 2015

Group One's Jamie Tyrrell says investors are buying upside calls in the VIX and selling puts, looking for the volatility index to push higher.

VIX

Videocast: Buying April VIX calls

March 19, 2015

As the market pulls back from yesterday's rally, Group One's Jamie Tyrrell says traders are buying VIX April 22, 26, and 27 calls.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Short Gamma

Last week, we talked about long Gamma. We said that long gamma is acquired by purchasing options and when you...

View more education articles »