VIX falls back under 20; futures follow
Chris McKhann | firstname.lastname@example.org
The CBOE Volatility Index ended yesterday back below the 20 level.
The volatility index ended the day at 19.72, down 0.66 points, or 3.24 percent. The S&P 500 gained 6.27 points to settle at 1319.99, coming off its highs in the last hour. The two indexes typically move inversely.
The VIX futures followed the spot volatility index. The July futures were down 0.75 points, or 3.34 percent, to 21.70 as the August futures fell 0.6 points to 23.65.
The VIX options traded 206,000 contracts, including 125,000 calls. The iPath S&P 500 VIX Short-Term Futures ETN (VXX) saw more than 83,000 contracts change hands, with calls slightly outpacing puts.
Videocast: Traders shift as VIX drops
May 17, 2013
As the volatility index falls with today's rally, GroupOne's Jamie Tyrrell says traders are no longer looking for crash protection in May contracts and are buying June VIX calls instead.
Videocast: View of VIX before settlement
May 16, 2013
GroupOne's Dominic Salvino, filling in for Jamie Tyrrell, says VIX traders are targeting the 13 or 14 level ahead of May settlement next week.
VIX rises even as SPX breaks record
May 16, 2013
Equities posted more gains yesterday, while the CBOE Volatility Index bucked its usually inverse relationship with the S&P 500 and rose along with stocks.
Videocast: Low premiums in volatility
May 15, 2013
GroupOne's Jamie Tyrrell says VIX premiums are surprisingly low, indicating that traders are not expecting much of a move before next week's May settlement.