Volatility rebounds as equities slip
Chris McKhann | email@example.com
Equity indexes lost a bit of ground yesterday, ending their recent winning streak and driving the CBOE Volatility Index higher.
The S&P 500 was down 6.24 points to 1676.26. It dipped below 1672 at midday and then bounced around from there. The index's intraday high of 1687 may continue to be resistance, while support is at 1629.
The Nasdaq 100 fell just over 2 points to 3077.46, right in the middle of the day's range. It has resistance at 3170 and support at 3000.
The Russell 2000 lost 4.55 points to finish up at 1038.75. It has resistance at 1085 and support at 1018.
The VIX added 0.63 points, or 4.57 percent, to close at 14.42. Its session high of 14.56 came about 30 minutes before the bell.
The VIX futures followed suit. July futures, which settle this morning, rose 0.20 points to finish at 14.25. The August VIX futures gained 0.45 points to close at 16.20. This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 2.59 percent to $17.41.
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.
Videocast: Volatility levels decline
October 6, 2015
Group One's Jamie Tyrrell says volatility trading today is implying that the type of VIX action from August and early September will not repeat itself.
Video: Traders see elevated VIX
October 5, 2015
Even with the volatility index falling below 20 today, Group One's Jamie Tyrrell says traders are buying calls and selling puts in the VIX.