Learn the trade here. Make it on tradeMONSTER

Options Trading News

February 21, 2013  Thu 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Fear--and volatility--came back into the market yesterday.

The CBOE Volatility Index leapt more than 19 percent yesterday, its biggest gain in more than a year, as equity indexes sold off.

The S&P 500 fell 18.99 points, or 1.24 percent, to close at 1511.95. The SPX gave up its gains of the last two weeks after coming off Tuesday's five-year highs. It fell virtually all day, but the selloff accelerated in the afternoon as shares finished at their lows. Resistance is now at Tuesday's high of 1531, while support is at 1495.

The Nasdaq 100 dropped 42.87 points, or 1.54 percent, to 2739.99, its lowest close since Feb. 4. It too fell sharply in the afternoon and finished at session lows. It has resistance at 2783 and support at 2715.

The Russell 2000 gave up its gains of the last week or so, falling 18.50 points, or 1.99 percent, to close at 913.50. Most of the losses came in the last hour. Tuesday's all-time high of 932 will be resistance, while support should be at 895.

All three equity indexes closed below their 10-day moving averages, and the NDX was even under its 20-day average. They also posted bearish "engulfing candlestick" patterns.
http://stockcharts.com/help/doku.php?id=chart_school:chart_analysis:candlestick_bearish_#bearish_engulfing

The VIX had its larget percentage gain since November 2011, up 19.25 percent. It gained 2.37 points to finish at 14.68, matching its close from the first day of 2013.

The VIX futures followed higher, with March contracts up 1.50 points to 15.40 and April futures gaining 1 point to 15.95. This drove the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 8.6 percent to close at 22.83, coming off an all-time low from Tuesday.

More than 625,000 VIX options traded, with calls outpacing puts by 2 to 1. The VVIX Index, which measures the implied volatility of the VIX options, was up more than 13 percent to 79.65. It was at an all-time low on Tuesday.
Share this article with your friends


Related Stories

VIX

Videocast: VIX pits quiet down

August 29, 2014

Despite persistent geopolitical issues, Group One's Jamie Tyrrell says volatility trading is slow ahead of the three-way weekend.

VIX

VIX above 12 as equities rebound

August 29, 2014

Equity indexes finished yesterday lower but regained much of the ground lost early in the session. The CBOE Volatility Index rose back above the 12 level but was well off its high of the day.

VIX

Videocast: Big buyer in VIX puts

August 28, 2014

As the market cuts its early losses, Group One's Jamie Tyrrell says the big VIX trade of the day is a purchase of September puts.

VIX

S&P 500 ekes out new record high

August 28, 2014

Equity indexes closed almost unchanged on light volume and low volatility yesterday, but the S&P 500 was able to eke out a new closing high.

VIX

Videocast: Low volume in VIX pits

August 27, 2014

Group One's Jamie Tyrrell says volume is low in the VIX pits as one large player appears to done buying upside calls.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

It's all skewed up

Most new option traders know little about implied volatility, and learn the hard way. Today we want to help you...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER