OptionsHouse

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 going to Weeklies

May 28, 2015

Group One's Jamie Tyrrell says new VIX Weekly options will soon replacee available, replacing the nine-day CBOE Short-Term Volatility Index (VXST) contracts.

VIX

Video: June VIX calls bought again

May 27, 2015

Even though the market has reversed course with today's rally, Group One's Jamie Tyrrell says traders are buying VIX June 18 calls for the second session in a row.

VIX

Video: Volatility measures jump

May 26, 2015

Group One's Jamie Tyrell says traders are buying June and July VIX calls with the spot index up 15 percent and the nine-day CBOE Short-Term Volatility Index (VXST) spiking 40 percent.

VIX

Video: Huge June VIX call buy

May 22, 2015

Group One's Jamie Tyrrell says one large player purchased 140,000 July 18 calls in the VIX, adding to heavy upside buying earlier in the week.

VIX

Video: Heavy June VIX call action

May 21, 2015

A day after the May VIX contracts settled at 12.80, Group One's Jamie Tyrrell says 250,000 June calls changed hands.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Archived Webinar

Education & Strategy

Long synthetic call

Long and short Synthetic stock are two of the six basic synthetic positions that exist. Number three on our list is the Synthetic Long Call...

View more education articles »