Learn the trade here. Make it on tradeMONSTER

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

VIX slips as SPX hits new highs

July 24, 2014

Major equity indexes posted more gains yesterday, pushing the S&P 500 to new highs as the CBOE Volatility Index declined again.

VIX

Videocast: Target 19 line in VIX

July 23, 2014

Group One's Jamie Tyrrell says traders are targeting the VIX 19 line today, selling calls in August and buying them in October.

VIX

VIX down as SPX posts new high

July 23, 2014

A broad market rally pushed the S&P 500 to a new all-time high while sending the CBOE Volatility Index lower by more than 4 percent.

VIX

Videocast: Betting on lower volatility

July 22, 2014

As the market rallies today, Group One's Mike Palmer says traders are betting that the recent pops in volatility will be short-lived.

VIX

Videocast: No panic in the VIX pits

July 21, 2014

Group One's Jamie Tyrrell says today's volatility is relatively muted even after the morning downturn, though traders are buying August and October call spreads.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Education & Strategy

How to navigate earnings season

We are embarking on one of the most frustrating times for new option traders: earnings season.Many new traders buy options,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER