VIX futures gain with sharp rise in index
Chris McKhann | firstname.lastname@example.org
The CBOE Volatility Index rose sharply yesterday, even though it was well off its session highs.
The VIX finished at 18.62, up 2.35 points, or 14.44 percent. It reached a high as 20.49 as the index saw its biggest spike in many months. This came as the S&P 500 fell below 1338 in the morning before recovering to close at 1350.52, down 12.14 points.
The August VIX futures were up 1.60 points, or 8.4 percent, to 20.75. The September futures rose 1.35 points, or 6.5 percent, while the October contracts gained 1.20 points to 23.85.
More than 327,000 VIX options traded, led by 258,000 calls. Not far behind were the iPath S&P 500 VIX Short-Term Futures ETN (VXX) options at 274,000, 155,000 of which were calls.
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.