Learn the trade here. Make it on tradeMONSTER

Options Trading News

May 29, 2012  Tue 11:21 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The CBOE Volatility Index is up even as the S&P 500 gains, which is unusual because the two indexes typically move inversely.

The VIX was down earlier with the strong market rally, which boosted the SPX almost to 1335. But now that the S&P has pulled back 11 points from that peak level, the VIX is up more than 2 percent to 22.22 after hitting an intraday high 22.29.

Much of the rise in the VIX could have been anticipated as SPX options are repriced after the long weekend. (The volatility index is based on those options.)

The VIX futures, on the other hand, are all lower. The June and July futures are both down 0.45 to 24.10 and 25.65 respectively. VIX option volume is relatively light at 158,000 contracts.
Share this article with your friends


Related Stories

VIX

What's next, the 'Cortisol Index'?

April 18, 2014

Most traders believe themselves rational and logical But all of the work done in behavioral economics has exposed our various psychological biases, which tend to hurt us in our investing.

VIX

Why you need to understand volatility

April 18, 2014

Volatility trading may sound like a complex and obscure strategy, but it is important because every option trade is also a volatility trade, whether intentional or not.

VIX

Videocast: Huge straddle in VIX

April 17, 2014

Group One's Jamie Tyrrell says one major player is opening the equivalent of a giant straddle in the May VIX contracts.

VIX

Equities extend streak; VIX near 14

April 17, 2014

The major equity indexes extended their winning streak to a third consecutive session yesterday, driving the CBOE Volatility Index back near 14.

VIX

Videocast: VIX pits focus on May

April 16, 2014

Now that the April contracts have settled, Group One's Jamie Tyrrell says traders are focusing on May options at the 16 level.

Premium Services

Education & Strategy

When cash is king (of hedging)

Whether your trades are winning or losing, it can be tempting to add to your positions. But in either case,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER