The Russell 2000 (RUT) was a stellar performer in 2013, but has been slow getting out of the gate in 2014. This past week RUT played a little catch up with the S&P 500 gaining almost 3%. Based on the strong performance of RUT, the CBOE Russell 2000 Volatility Index dropped over 14% closing at 18.34. At least one market participant is happy about the drop in RVX. There has been a seller of the RVX Feb 21 Calls showing up periodically when RVX has strong days. Barring a big move in RVX over the next couple of days those calls will expire out of the money on Wednesday morning.
The Nasdaq-100 (NDX) rose 2.86%, just behind the strong week for the RUT. VXN came in over 11% based on the strong performance from NDX. Of course the holiday weekend contributed some to this drop, but that was definitely not the biggest factor this past week.