Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 20, 2012  Thu 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equities were mixed yesterday as the CBOE Volatility Index spiked higher.

The S&P 500 was down 10.98 points to close at 1435.81, near its session slow, after sliding throughout the afternoon. Support is at 1414 while resistance remains at 1461.

The Nasdaq 100 followed a similar pattern as it lost 14.40 points, or 0.5 percent, to finish at 2690.99. It too jumped higher at the open and lost ground in the afternoon, then dumped into the close. Support is at 2620, and resistance will likely come first at the day's high of 2713.

The Russell 2000 was higher at the end of the day. The small-cap index peaked at 851 in the middle of the day and also declined in the afternoon, but it still closed fractionally higher at 847.89.

The surprise of the day came from the VIX, which was up 1.79 points, or 11.5 percent, to 17.36. This was an especially large gain, given the relatively tight range of the S&P 500. But it was near this level two weeks ago and closed above it on Nov. 15, the day that the SPX bounced off 1350.

The December VIX futures settled at the open yesterday, coming in at an unexpectedly high 16.69. That too was surprising, given that those futures finished trading the day before at 15.55 while the SPX was unchanged overnight.

The January VIX futures, now the front-month contracts, gained 0.95 points to close at 17.10. The February futures were up 0.75 points to 17.85.

The VIX is again above the front-month futures, and its term structure is very flat. This shows near-term concern, but still not a lot of it.
Share this article with your friends


Related Stories

VIX

VIX declines as equities resume rally

October 31, 2014

The major equity indexes resumed their rally yesterday after pausing in the previous session, sending the CBOE Volatility Index lower again.

VIX

Videocast: Fears of another drop

October 30, 2014

Group One's Jamie Tyrrell says traders have been buying November VIX calls are today are targeting the December 25s, fearing a repeat of the mid-October selloff.

VIX

VIX back above 15 as equities slip

October 30, 2014

Equity indexes finished yesterday lower but little-changed, with the CBOE Volatility Index closing back above the 15 level.

VIX

Videocast: Call spreads in VIX

October 29, 2014

Traders are buying VIX calls again wiith premiums still relatively low, and Group One's Jamie Tyrrell says that vertical spreads are today's most popular strategy.

VIX

Small caps lead rally; VIX below 15

October 29, 2014

Equity indexes continued to climb yesterday, reaching their best levels in about a month and pushing the CBOE Volatility Index well below 15.

Premium Services

Free Webinar Series

The 100K Challenge

Education & Strategy

Anatomy of a butterfly

One of the many esoterically named option strategies is known as a "butterfly." But don't be fooled: Like other advanced...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER