VIX slips again with stocks mixed
Chris McKhann | firstname.lastname@example.org
Major equity indexes were mixed but little-changed at the end of yesterday's session as the CBOE Volatility Index continued to decompress.
The S&P 500 was down 3.18 points to 1722.34. It slid lower for most of the day and then moved sideways for the final two hours. It has support at 1680.
The Nasdaq 100 was up 6.30 points to finish at 3237.61, another 13-year high. Support is 3150.
The Russell 2000 lost 1.70 points to close at 1075.27. It has support at 1040.
(When equity indexes are at highs, further resistance levels are obviously projections not based on previous trading patterns, so I will refrain from listing them.)
The VIX fell along with the SPX as the two indexes again bucked their usual inverse relationship. The volatility index was down 0.43 points, or 3.16 percent, to 13.16. That was its lowest close in more than a month and came even as the 20-day actual volatility for the SPX remains at 10 percent.
The VIX futures were mixed, with the October contracts up 0.05 points to 14.75 and the November futures flat at 15.90. Despite that, the iPath S&P 500 VIX Short-Term Futures Note (VXX) was down fractionally to $13.58, another all-time closing low.
Video: Traders see elevated VIX
October 5, 2015
Even with the volatility index falling below 20 today, Group One's Jamie Tyrrell says traders are buying calls and selling puts in the VIX.
Videocast: Target 35 level in VIX
October 2, 2015
Group One's Jamie Tyrrell says traders are targeting the 35 level for the volatility index in October, November, and December contracts.
Video: Traders sell VIX premium
October 1, 2015
Although the spot VIX remains elevated, Group One's Jamie Tyrrell says implied volatility is "pretty normal" for October.
Video: Sharp moves seen in VIX
September 30, 2015
Group One's Jamie Tyrrell says an October 23.50 straddle traded for about $5, indicating that a big move is expected in volatility levels.
Video: Big trades sell calls in VIX
September 29, 2015
Group One's Jamie Tyrrell says two big trades today are selling October 22 calls and closing a December 20/35 call spread.