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, equities rise slightly after Fed

July 31, 2014

The major equity indexes and the CBOE Volatility Index closed higher but little-changed after the Federal Reserve announced its monetary policy yesterday.

VIX

Videocast: How VIX is trading Fed

July 30, 2014

As the market declines today, Group One's Jamie Tyrrell says all of the major volatility measures are rising ahead of the Fed's afternoon announcement.

VIX

VIX above 13 with stocks at lows

July 30, 2014

Equity indexes ended yesterday's session mixed but near their lows of the day, while the CBOE Volatility Index closed near its high.

VIX

Videocast: Volume falls in VIX pits

July 29, 2014

With the volatility index continuing to remain below 20, Group One's Jamie Tyrrell says volume has dropped in VIX contracts with fewer traders buying protection.

VIX

VIX, equity indexes close almost flat

July 29, 2014

The major equity indexes were mixed but essentially unchanged at the end of yesterday's session, as was the CBOE Volatility Index.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER