This Week in VIX Options and ETPs – 1/10/2014

I’m still trying to digest the relative non-reaction out of the equity market to Friday’s employment number.   About half the day the market was down and then by the end of the days the bulls took over for a slight gain.   VIX began the day by moving higher for about 30 minutes and then basically trending lower until they turned the machines off for the weekend.  VIX futures volume was relatively light and there were very few VIX option trades of size.

The four indexes based on different SPX option volatility moved down in sync last week.  The chart below shows the VXST – VIX – VXV – VXMT price action from Friday to Friday.  It appears there is very little concern for a volatility event that will hit the equity markets anytime soon.


In the ETPs space, the funds that focus on a long strategy lost value based on persistent contango and lower futures prices.  As was the case for most of 2013 the two exchange traded products that focus on a short strategy were the beneficiaries of the low volatility environment.

Options and ETPs