OptionsHouse

Options Trading News

August 29, 2013  Thu 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
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.
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 »