OptionsHouse

Options Trading News

January 24, 2013  Thu 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Major equity indexes were mixed but mostly unchanged yesterday, while the CBOE Volatility Index was fractionally higher.

The S&P 500 finished the day up 2.25 points at 1494.81, another five-year high. It hit an intraday high of 1496 an hour before the bell. The SPX still has resistance at 1523 and support at 1457.

The Nasdaq 100 was up just shy of 16 points to 2762.17, but it didn't surpass the morning high and remains well below September levels. It has resistance at 2785 and support at 2704.

The Russell 2000 was down just over 2 points to close at 896.70, though it did hit a new intraday high of 899.53. Resistance at 900 seems to be holding for now, while support is at 872.

The VIX was up 0.03 points to finish up at 12.46. It slipped to 12.3 in the early afternoon and then climbed with the SPX, though the two indexes usually move inversely.

While the VIX is relatively low, it remains at a huge premium to the actual volatility of the SPX. The 10-day historical volatility for the SPX is 4.3 percent, barely above August lows.

The VIX futures were lower, with the February contracts down 0.35 points to 13.70. The March futures were down 0.30 points to 15.10. This sent the iPath S&P 500 VIX Short-Term Futures ETN (VXX) to yet another all-time low, down 2.7 percent to 22.67.

The VIX options traded 743,000 contracts, with calls outpacing puts by 2 to 1. The VVIX Index, which measures the implied volatility of the VIX options, was down 2.7 percent to 71.86.
Share this article with your friends


Related Stories

VIX

Videocast: Near-term pop in VIX?

March 3, 2015

Group One's Jamie Tyrrell says today's action in the VIX pits indicates that traders are positioning for volatility to rise in the near term.

VIX

Videocast: Traders see floor in VIX

March 2, 2015

Group One's Jamie Tyrrell says traders are selling March VIX puts, apparently believing that further downside potential in the volatility index is limited.

VIX

Videocast: VIX 'cash spread' hedge

February 27, 2015

Group One's Mike Palmer explains the strategy behind a VIX "cash spread" as traders cover positions going into the weekend.

VIX

Videocast: Futures see higher VIX

February 26, 2015

Although the spot volatility index remains below 14, Group One's Dominic Savino says the March VIX futures are targeting the 16 level.

VIX

Videocast: Low short-term volatility

February 25, 2015

Although a big player is buying VIX March 23 calls, Group One's Mike Palmer says the iPath S&P 500 VIX Short-Term Futures Note (VXX) settled today near 11.

OptionsHouse

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

View more education articles »