Options Trading News

May 29, 2012  Tue 11:21 AM CT

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


Video: VIX pits shift to November

October 13, 2015

With the October settlement next week, Group One's Jamie Tyrrell says VIX traders are moving ahead by selling November 15 puts and buying a November 22/28 call spread.


Video: Buying cheap calls in the VIX

October 12, 2015

As the spot volatility index drops below 17, Group One's Jamie Tyrrell says traders are buying 70,000 VIX November 30 calls for $0.50.


Video: Traders targeting higher VIX

October 9, 2015

The volatility index is little-changed today, but Group One's Jamie Tyrrell says some big trades are still looking for a higher VIX in October.


Video: VIX October 22 calls bought

October 8, 2015

The VIX Weeklies began trading today, but Group One's Jamie Tyrrell says the big trade is in standard options with a purchase of 45,000 VIX October 22 calls.


Videocast: VIX call buyers return

October 7, 2015

Group One's Jamie Tyrrell says traders were selling VIX calls early in the day but reversed course as the market rally fizzled.



The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »