OptionsHouse

Options Trading News

January 23, 2013  Wed 1:16 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The major equity indexes pushed higher again yesterday, driving the CBOE Volatility Index and its futures down further.

The S&P 500 gained 6.58 points to close at its session high of 1492.56, another new five-year high. Resistance remains at 1523 and support at 1457.

The Nasdaq 100 gained almost 3 points to finish at 2746.19. It continues to underperform its peers as that close remains below Thursday's. The NDX is 130 points off its September highs and is just above its 10-day moving average. Resistance is at 2785 and support at 2704.

The Russell 2000 finished at yet another all-time high of 899.23. The RUT gained more than 6 points, or 0.72 percent--the best percentage gain of the three indexes--and is up about 20 percent from the mid-November lows. It has support at 872.

The VIX was higher for almost all of the day but collapsed further into the close, finishing down 0.03 points to 12.43--its lowest level since April 2007. This was relative strength compared to the actual drop in volatility levels because the SPX options, on which the VIX is based, were getting repriced after the three-day weekend.

The lower volatility levels were reflected in the VIX futures. The February VIX contracts were down 0.60 points to 14.05, and the March futures lost 0.95 points to 15.35. The open interest set a new high of 454,000 contracts coming into the day.

The drop in those VIX futures left the iPath S&P 500 VIX Short-Term Futures ETN (VXX) down to yet another new low, losing 2.8 percent to close at 23.30.

More than 840,000 VIX options changed hands, putting it second on the total volume list, with 475,000 calls. The VVIX Index, which measures the implied volatility of the VIX options, was barely higher off of Friday's all time low.
Share this article with your friends


Related Stories

VIX

Videocast: Volatility settles down

July 6, 2015

The spot VIX is still higher, but Group One's Jamie Tyrrell says volatility has pulled back from its initial spike this morning as the market digests the Greek situation.

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.

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

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

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 »