OptionsHouse

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

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.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

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 »