VIX slips as equity indexes bounce
Chris McKhann | firstname.lastname@example.org
The major equity indexes all posted gains but finished yesterday off their best levels of the session. The CBOE Volatility Index declined, but its futures closed higher.
The S&P 500 picked up 4.48 points to close at 1634.96. It climbed above 1641 midday but lost ground in the final hour. It has resistance at 1680 and support at 1600.
The Nasdaq 100 was up 12.60 points to 3072.17. It followed a similar path as the SPX and found resistance at 3085. It has further resistance at 3149 and support at 3030.
The Russell 2000 gained 3.01 points to finish at 1016.50. It again found some support at 1013. The next level below that is 1000, and there is resistance at 1055.
The VIX fell 0.28 points, or 1.67 percent, to 16.49. It had jumped above 17 in the first minutes of the session, then fell as low as 16.10 in midday trading. It remains at a premium to the actual volatility of the S&P 500, but to a decreasing degree, as the 10-day historical volatility is now up to 12.7 percent.
The VIX futures were higher. The September contracts were up 0.15 points to close at 17.35. The October futures gained 0.05 points to close at 17.95. Interestingly, the iPath S&P 500 VIX Short-Term Futures Note (VXX) was down 0.3 percent to $16.48.
Videocast: VIX put selling pays off
July 30, 2015
The VIX is little-changed today, and Group One's Jamie Tyrrell explains how recent put selling has paid off for volatilty traders.
Video: Case study in VIX pullback
July 29, 2015
Group One's Jamie Tyrrell says the volatility index's move down in the last week illustrates just how quicly the VIX can fall as well as rise.
Video: Traders unload puts in VIX
July 28, 2015
As the market rallies today, Group One's Jamie Tyrrell says traders are selling August 14 and 14.50 VIX puts in the belief that downside will be limited.
Video: Call buyers ride pop in VIX
July 27, 2015
With the spot volatility index jumping well above 15 today, Group One's Jamie Tyrrell says VIX call buyers are targeting the 20 strike in August and September.
Video: Steady buying in VIX calls
July 24, 2015
With the market down again today, Group One's Jamie Tyrrell says traders are snapping up calls in August, September, and October.