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

Videocast: VIX futures hold firm

November 21, 2014

Even after the market rallied hard this morning, Group One's Jamie Tyrrell says the VIX futures barely budged and actually moved higher later.

VIX

SPX hits new closing high; VIX slips

November 21, 2014

Equity indexes rallied again yesterday, pushing the S&P 500 to another milestone while sending the CBOE Volatility Index lower.

VIX

Videocast: VIX call buyer returns

November 20, 2014

For the second day in a row, Jamie Tyrrell says a big player is buying the VIX December 19 and 23 calls in large volume but at lower prices.

VIX

VIX up slightly as equities decline

November 20, 2014

The major equity indexes were lower at the end of yesterday's session, with the CBOE Volatility Index rising slightly.

VIX

Videocast: December call buying

November 19, 2014

Now that the November contracts have settled, Group One's Jamie Tyrrell says traders are snapping up the December 19 and 23 calls.

Premium Services

Webinar Playback

eSignal "Back in Black": Multi-Speaker Free Webinar

Education & Strategy

Some things aren't what they seem

As we scan the Heat Seeker, Depth Charge, and other option-tracking systems, we sometimes see heavy activity in calls and...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER