Options Trading News

August 28, 2013  Wed 1:47 AM CT

Volatility rose as equity indexes fell sharply yesterday for the second session in a row on concerns about possible U.S. military involvement in Syria.

The S&P 500 lost 26.30 points, or 1.59 percent, to close at 1630.48. The SPX fell all day, finishing just above the session low. The index found resistance at its 10-day moving average and pushed down from there, finishing well below that and the 20-day moving average as well. It has resistance at 1700 and support at 1600.

The Nasdaq 100 was down 63.09 points, or 2.02 percent, to 3059.58. It followed the same pattern as the SPX. Resistance is at 3149 and support at 3000.

The Russell 2000 gave up 24.98 points, making it the biggest percentage loser at 2.41 percent. It has resistance at 1055 and support at 1000.

The CBOE Volatility Index was up 1.78 points, or 11.87 percent, to end at 16.77 after trading as high as 17.13 shortly before the bell. That was the highest close for the VIX since June. The rise in the implied volatility index follows an increase in actual volatility in the S&P 500. The 10-day historical volatility is up above 12 percent now, having more than doubled in the last month.

The VIX futures followed higher. The September futures were up 1.35 points to 17.20, remaining at a premium to the spot VIX. The October futures gained 1.20 points to close at 17.90. This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 8.11 percent to close at $16.53.
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