OptionsHouse

Options Trading News

December 13, 2012  Thu 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The S&P 500 barely extended its winning streak to six straight sessions yesterday, but that didn't stop the CBOE Volatility Index from rising as the major stock indexes gave up earlier gains to close mixed.

The SPX was up just 0.64 points to finish at 1428.48. It had climbed above 1438 in the midday rush but then slipped with the rest of the equity indexes in the afternoon as Fed Chairman Ben Bernanke spoke. That 1438 level is now resistance, while support remains at 1398.

The Nasdaq 100 lost 7.50 points to close at 2674.57. The NDX had been above 2696 at the morning high and climbed above 2691 on several occasions throughout the day, but it fell less than two hours before the close. Support and resistance remain at 2600 and 2700 respectively.

The Russell 2000 was also lower, dropping 5.60 points to 829.39. The small-cap index opened the day at its high above 837, which it retested in the early afternoon, but dropped to its session low just before the bell. Support is at 810 and resistance at 842.

The VIX was up 0.38 points, or 2.44, percent to 15.95. The volatility index spent part of the morning above 16 but fell to the day's low of 15.41 with two hours left to trade.

The December VIX futures gained 0.60 points to finish at 16.15, and the January VIX futures were up 0.60 points to 17.10. The iPath S&P 500 VIX Short-Term Futures ETN (VXX), which comprises those two futures contracts, was up 2.5 percent to 29.57 at the close but only after hitting a new all-time low of 28.58 during the session.

The VIX options were third in total volume on the day at 589,000 contracts. Calls barely outpaced puts, with calls trading heavily late in the day. The VVIX Index, which measures the implied volatility of the VIX options, was up 5.5 percent to 83.02 as it came off the morning low.
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

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 »