This Week in VIX – 4/11/2014

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 –

Carley Garner of DeCarley Trading commenting on VIX as an indicator of market nervousness –…check%20out%20the%20VIX.html