VIX up as Russell 2000 leads selloff
Chris McKhann | email@example.com
Equity indexes pared early losses but still finished lower yesterday, while the CBOE Volatility Index and its futures rose.
The S&P 500 was down 11.70 points, or 0.7 percent, to close at 1648.36. It had dipped to 1640 in the morning before regaining some ground and finishing in the middle of the day's range. Resistance remains at 1687 and support at 1635.
The Nasdaq 100 lost 17.12 points, or 0.57 percent, to close just below 2994.82. It bounced at 2980 before grinding higher. Resistance is at 3053 and support at 2965.
The Russell 2000 fell 10.39 points, or 1.04 percent, to 986.96. That was the worse percentage loss of the three indexes, giving up most of Tuesday's gains in the RUT. Resistance is at 1008 and support at 977.
The VIX was up 0.35 points, or 2.42 percent, to 14.83. It had climbed to 15.65 when the SPX bottomed.
The VIX futures were mixed, with the June futures gaining 0.20 points to close at 15.40 and th July contracts up 0.05 points to 16.40. This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 1.52 percent to $18.55.
Video: Traders see elevated VIX
October 5, 2015
Even with the volatility index falling below 20 today, Group One's Jamie Tyrrell says traders are buying calls and selling puts in the VIX.
Videocast: Target 35 level in VIX
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Group One's Jamie Tyrrell says traders are targeting the 35 level for the volatility index in October, November, and December contracts.
Video: Traders sell VIX premium
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Although the spot VIX remains elevated, Group One's Jamie Tyrrell says implied volatility is "pretty normal" for October.
Video: Sharp moves seen in VIX
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Group One's Jamie Tyrrell says an October 23.50 straddle traded for about $5, indicating that a big move is expected in volatility levels.
Video: Big trades sell calls in VIX
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Group One's Jamie Tyrrell says two big trades today are selling October 22 calls and closing a December 20/35 call spread.