Learn the trade here. Make it on tradeMONSTER

Options Trading News

August 8, 2013  Thu 2:14 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equities continued to drift lower yesterday, but volatility remained subdued.

The S&P 500 declined 0.38 percent to 1690.91, its third straight drop and second consecutive close under 1700. It also dipped below its 10-day moving average, which could suggest a potential weakening of bullish momentum. The index bounced around the same 1687 level where it peaked in May and has further support at 1670.

The Nasdaq 100 was the strongest of the three major indexes we track, shedding just 0.11 percent to 3118.69. Support remains at 3030.

The Russell 2000 small-cap index led to the downside for the second straight day, falling 0.74 percent to 1044.34. Support is at 1020.

(When equity indexes are at highs, further resistance levels are obviously projections not based on previous trading patterns, so we will not guess at them here.)

The CBOE Volatility Index rebounded 2 percent to 12.99 but surrendered most of its earlier gains. The VIX and S&P 500 usually move in opposite directions. The iPath S&P 500 VIX Short-Term Futures Note (VXX), which is based on the two nearest-month VIX futures contracts, rose 1.1 percent to $14.64.
Share this article with your friends


Related Stories

VIX

Videocast: Heavy VIX call buying

October 24, 2014

Group One's Jamie Tyrrell says traders are buying November calls and futures in large size, quickly driving premiums higher.

VIX

VIX slips as big rally erases losses

October 24, 2014

Equity indexes rallied sharply yesterday, erasing the losses of the previous session and sending the CBOE Volatility Index lower.

VIX

Videocast: Protection gets cheaper

October 23, 2014

Although the volatility index is dropping with today's rally, Group One's Jamie Tyrrell says traders are buying VIX protection at lower premiums.

VIX

Volatility rises as equities pull back

October 23, 2014

The major equity indexes gave up ground yesterday, and the key volatility measures reacted by moving sharply higher.

VIX

Videocast: Quiet returning to VIX?

October 22, 2014

Group One's Jamie Tyrrell says the VIX fell 10 percent a day for three straight sessions, the first time that has ever occurred.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER