OptionsHouse

Options Trading News

October 16, 2013  Wed 2:14 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equity indexes lost ground yesterday as budget talks hit a roadblock in Washington, sending the CBOE Volatility Index up sharply.

The S&P 500 fell 12.08 points to close at 1698.06. Even with that loss, it held up reasonably well given the rancor on Capitol Hill. The index saw volatile trading in the morning, topping at 1711 before pulling back in the afternoon. It has resistance at 1749 and support at 1630, though that support level will mean little if a deal doesn't get done.

The Nasdaq 100 was down 11.36 points to 3244.66. It hit a new 13-year intraday high just barely shy of 3270 in the morning before declining. It has resistance at that 3270 and support at 3120.

The Russell 2000 dropped 10.69 points to 1079.62. The small-cap index did not see positive territory in the session, one day after posting an all-time closing high. It has resistance at that high of 1090 and support at 1040.

The VIX jumped 2.59 points, or 16.12 percent to 18.66, essentially matching its session high. The volatility index dipped to 16.15 about two hours into the session before bouncing.

The VIX futures were also higher. It was the last trading day for the October futures, which settle this morning and closed at 18.20. They were substantially lower than the spot volatility index, as traders apparently expect something good to happen before the morning settlement. (Ratings agency Fitch put the United States on "negative watch" after the close, but equity futures were surprisingly higher after that news.)

The November VIX futures closed at 17.35. The iPath S&P 500 VIX Short-Term Futures Note (VXX) were up 5.99 percent to $15.56.
Share this article with your friends


Related Stories

VIX

VIX at highest level in 4 months

June 29, 2015

The CBOE Volatility Index is up 23.75 percent to 17.35 in midday trading, just off its intraday peak and its highest level since Feb. 11.

VIX

DRJ: Keep a close eye on volatility

June 29, 2015

As the Greek crisis intensifies, we are likely to see an explosion in volatility as widespread selling in European markets in turn pressures our indexes.

VIX

Video: Heavy July VIX call selling

June 24, 2015

After a steady stream of buying recently, Group One's Jamie Tyrrell says a trader sold 75,000 July 17 calls yesterday, and those levels are holding today.

VIX

Videocast: Cheap VIX call buying

June 23, 2015

With the volatility index down again today, Group One's Jamie Tyrrell says traders are buying July VIX calls but for much lower prices than last week.

VIX

Video: August insurance in VIX

June 22, 2015

After last week's heavy volume paused on Friday, Group One's Jamie Tyrrell says VIX call buying has resumed with traders focused on August.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

View more education articles »