Thursday, July 12, 2007

New VIX Options Volume Record Yesterday

The VIX has been setting records for options volume on a fairly regular basis. This should not come as a surprise, as VIX options are still less than a year and a half old, making records easy to come by, even without resorting to steroids and corked bats.

Yesterday marked another VIX options volume record, with the 322,484 contracts easily besting the previous record of 277,260 from back on May 16, 2007. I generally don't bother to mention this type of news, because I have yet to find a meaningful relationship between VIX futures volume or VIX options volume and subsequent market moves.

Given that it's a slow day from a VIX perspective, I thought I'd throw out the 'news' and see if any readers care to comment on VIX options volume and what it may tell us about the direction of the markets.

1 comments:

Anonymous said...

Hi Bill,
I monitor the VIX on Excel spreadsheets on a daily basis. I noted that Wednesdays' puts were 5 times its' 45 dma, while the calls were 3 times its's dma.I have only collected 45 days of data, but will build this up to a 100 dma.Now somebody knew or planned something as these were also record volumes compared to the dma.
I feel that by monitoring the volumes against the individual dma, a trader may gain an edge over other traders average traders. I am a regular visitor to Brett Steenbarger's websites and he mentioned the 100dma possibilities in a previous article.
Malcolm Buchanan

DISCLAIMER: "VIX®" is a trademark of Chicago Board Options Exchange, Incorporated. Chicago Board Options Exchange, Incorporated is not affiliated with this website or this website's owner's or operators. CBOE assumes no responsibility for the accuracy or completeness or any other aspect of any content posted on this website by its operator or any third party. All content on this site is provided for informational and entertainment purposes only and is not intended as advice to buy or sell any securities. Stocks are difficult to trade; options are even harder. When it comes to VIX derivatives, don't fall into the trap of thinking that just because you can ride a horse, you can ride an alligator. Please do your own homework and accept full responsibility for any investment decisions you make. No content on this site can be used for commercial purposes without the prior written permission of the author. Copyright © 2007-2013 Bill Luby. All rights reserved.
 
Web Analytics