OptionsHouse

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

Video: Traders target VIX 14 level

May 4, 2015

The volatility index is positive despite gains in the S&P 500, bucking their usual inverse relationship, and Group One's Jamie Tyrrell says traders continue to target the VIX 14 level.

VIX

Videocast: May VIX call buys return

May 1, 2015

With VIX futures falling as the market rebounds today, Group One's Jamie Tyrrell says 38,000 VIX May 18 calls were purchased today.

VIX

Videocast: VIX traders turn to June

April 30, 2015

Group One's Jamie Tyrrell says volatility traders are targeting June VIX contracts today as the recent heavy May call buying has apparently subsided.

VIX

Videocast: VIX 20 level targeted

April 29, 2015

Group One's Jamie Tyrrell says a big VIX call buyer is back with the market down today, this time targeting 75,000 May 20 contracts.

VIX

Videocast: VIX call buying returns

April 27, 2015

Group One's Jamie Tyrrell says upside VIX buyers are back after taking a break last week, today opening a May 16/21 call spread 32,000 times.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Education & Strategy

Introduction to Synthetics

"Synthetics" is the name given to the relationship of two separate positions, constructed differently, that have the same exact risk and reward at each and every price level. They say that there is more than one way to skin a cat...well, there is always more than one way to create an option position...

View more education articles »