Last Week in VIX – 4/13/2014

VIX did what VIX does when the stock market sells off, it moved up.  Specifically VIX rose 22% last week settling just over 17 as the S&P 500 showed some real signs of weakness on Thursday and Friday last week.  April VIX futures and options trade for two more days and then expire this coming Wednesday morning.  Since there are only two trading days remaining before April VIX goes off the board the future was at a slight discount to the index.  The May future was just slightly lower which is an indication that the market may not believe this time the S&P 500 is going to rebound to new highs and push VIX back down to the lower teens.

Option trading on Friday was pretty interesting.  There appeared to be several instances of taking off long April call positions, but not rolling into May.  Could be with VIX at high levels traders are going to try to exit their April positions and then leg into May option positions on any VIX weakness.

Finally, I came across a couple of interesting posts this week related to my favorite topic (VIX) –

Jay Wolberg at Trading Volatility talking about a new uptrend in VIX and VIX Futures –

http://www.tradingvolatility.net/2014/04/say-hello-to-new-uptrend-in-vix-and-vix.html

Carley Garner of DeCarley Trading commenting on VIX as an indicator of market nervousness –

http://www.insidefutures.com/article/1195757/Markets%20on%20the%20brink…check%20out%20the%20VIX.html

VIX

Last Week in Gold and Oil Volatility – 4/13/2014

While the equity markets continue to receive a lot of attention due to the recent downside moves the commodity space has been unusually quiet.  The SPDR Gold Shares ETF (GLD – 126.93) rose 1% last week and seems destined to be stuck in the upper 120’s.  Oil did a little better with the United States […]

Last Week in VIX Options and ETPs – 4/13/2014

What a difference a week makes especially in the volatility world.  Based on an equity market drop, which came mostly at the end of the week, of 2.65% last week VXST was up over 33% and VIX climbed a hair under 22%.  The shift in the curve is pretty dramatic, going from what we are […]

Last Week in Russell 2000 and NASDAQ-100 Volatility – 4/13/2014

Last week, especially the end of the week was an ugly one for the equity markets.  The big loser among the S&P 500, NASDAQ-100, and Russell 2000 was the Russell 2000 which lost about 1% more than the other two broad based market indexes with associated listed volatility markets.  Despite the underlying market being down […]

Last Week in Emerging Market Volatility – 4/13/2014

Before talking about the volatility markets I did want to point out an emerging market trade that caught my eye on Friday.  Mid-morning there was a buyer of 12,000 EEM Jun 40.00 Calls at 2.62 that also sold 12,000 EEM Jun 43.50 Calls for 0.72 and a net cost of 1.90.  EEM was around 41.65 […]

Last Week in VXST – 4/13/2014

CBOE picked a heck of a week to launch VXST options as the S&P 500 lost 2.65% last week which is the worst weekly performance since May 2012.  Of course months of planning went into the successful launch of VXST options on Thursday and there was no way the price action in the S&P 500 […]

Exciting First Day for VXST Option Trading at CBOE

The first day for VXST option trading is history and what a day it was in the equity markets with the S&P 500 losing just over 2% and the NASDAQ-100 dropping over 3%.  Operationally trading in the new VXST option market was smooth as any established market despite the extra equity market volatility.  Just before the close […]

VIX Properly Reflecting Fear

Over the past couple of weeks I have been out and about representing CBOE and The Options Institute in diverse places such as Schaumburg, IL, San Jose, New York, and Omaha, NE.  On these travels I have often been asked about the persistent low level for VIX despite pockets of weakness in the stock market.  […]

VXST Options – Day 1 Est. Volume of 3,134, as Index Jumps 30% – By Matt Moran

APRIL 10, 2014 –  Today CBOE launched options on the CBOE Short-Term Volatility Index (VXST), and the VXST Index rose 30% to close at 16.50. VXST options trading volume was an estimated 3,134 contracts, with much of the volume focused on near-term VXST call options (with an April 16 expiration and a 16 strike price) […]

VXST Options to Launch April 10 – By Matt Moran

April 8, 2014 – CBOE plans to launch options on the CBOE Short-Term Volatility Index (VXST) on Thursday, April 10.  Below are points that can help in your analysis.  Much more information is available at www.cboe.com/VXST. 1.    VXST INDEX – The VXST Index is based on real-time prices of options on the S&P 500 Index […]

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