Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 19, 2012  Wed 9:12 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The settlement for the December VIX futures and options came in unexpectedly high this morning at 16.69.

The volatility index is at 16.58, up 6.4 percent on the day, which is highly unusual because the S&P 500 opened unchanged and is now down only 2 points. The VIX and the SPX typically move in opposite proportions.

The January futures, now the front-month contracts, are up 0.25 points to 16.40 and are immediately below the spot VIX. The February futures are up by the same amount to 17.35.  

The December futures finished trading yesterday at 15.55, so it had a curiously big lift to settlement this morning with no action in the SPX. And the SPX options volume is light so far at just 185,000.

Remember that the futures settlement is based on trade prices of the SPX options this morning as opposed to the spot VIX, which is derived from the midpoint of the bid/ask spread.
Share this article with your friends


Related Stories

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.

VIX

VIX drops as equities bounce back

July 21, 2014

Equity indexes rebounded sharply at the end of last week, making up most of Thursday's steep losses and pushing the CBOE Volatility Index back down to the 12 level.

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