OptionsHouse

Options Trading News

March 6, 2012  Tue 1:43 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The CBOE Volatility Index closed higher yesterday, but the VIX futures fell with the S&P 500.

The VIX, which usually moves inversely to the SPX, ended the day just off its session low but was still up 4.4 percent to 18.04. This came with the S&P 500 down 5.3 points to 1364.33.

The March VIX futures were down 1.23 percent to 20.15. April futures were down fractionally to 23.65. The May futures were unchanged, and rest were higher.

So even though the futures closed their gap with the spot VIX reading, the spread between the futures themselves actually widened again.

The VIX-based exchange-traded funds and notes also continue to show oddities. The iPath S&P 500 VIX Short-Term Futures Note (VXX) was lower at the end of the day, giving up 1 percent to 24.04. But the the VelocityShares Daily 2X VIX Short-Term Note (TVIX), which theoretically should give 2 times that return, was up 0.86 percent to 16.36.
Share this article with your friends


Related Stories

VIX

Video: Near-term VIX calls purchased

February 5, 2016

Group One's Jamie Tyrrell says volatility traders had been looking farther out but are now picking up February 28 calls.

VIX

Videocast: Huge VIX call spread sold

February 4, 2016

As the market continues to churn, Group One's Jamie Tyrrell says today's big trade is the sale of a VIX March 30/40 call spread 115,000 times.

VIX

Videocast: Big March call spread in VIX

February 3, 2016

As the market pulled back this morning, Group One's Jamie Tyrrell says a major player bought a March 30/40 call spread 150,000 times.

VIX

Video: VIX traders buying March calls

February 2, 2016

As volatility rises with today's market decline, Group One's Jamie Tyrrell says traders are purchasing the VIX March 30 and 35 calls.

VIX

Video: VIX traders split on next move

February 1, 2016

With the market pausing after last week's rallies, Group One's Jamie Tyrrell says traders are buying both March 15 puts and Weekly 20 calls.

OptionsHouse

Premium Services

Upcoming Webinar:

How to Defend Your Portfolio and Profit in a Market Selloff

http://bit.ly/1OSMWU6

Jon Najarian and Sandy Chaikin of Chaikin Analytics demonstrate how to play defense when the market is selling off. And, how to turn misery into money, whether investing in stocks or trading options.

Education & Strategy

The sweet spot

When using the Stock Replacement Strategy, we must remember that in reality, we are doing a STOCK trade. We are just using options. We are replacing the stock position with an option position (long calls).

View more education articles »