$MXEA Archives - Cboe Blogs

  • Market News | Feb 22, 2016, 2:20 PM

    Open Interest for Options on MSCI Emerging Markets Index (MXEF) Grows to 6,229 Contracts

    Open Interest for Options on MSCI Emerging Markets Index (MXEF) Grows to 6,229 Contracts

    Open interest for options on the MSCI Emerging Markets Index (MXEF) recently rose above 6,200 contacts for the first time. Over the past month the MXEF options open interest grew from 98 to 6,229 contracts. Over the past year several institutional investors have expressed to me their interest in the potential for a liquid MXEF options contract, particularly because the MXEF options contract is cash-settled and has a notional size that is about 24 times larger than options on the EEM ETF. VOLATILITY[...]

  • Education | Trade Ideas | Feb 4, 2016, 9:46 AM

    Open Interest for Options on MSCI Emerging Markets Index (MXEF) Tops 600 Contracts

    Open Interest for Options on MSCI Emerging Markets Index (MXEF) Tops 600 Contracts

    This last week the open interest for options on the MSCI Emerging Markets Index (MXEF) rose above 600 contacts for the first time. Over the past year several institutional investors have expressed interest in the potential for a liquid MXEF options contract, particularly because the MXEF options contract is cash-settled and has a notional size that is about 24 times larger than options on the EEM ETF. VOLATILITY SKEW FOR MXEF OPTIONS The volatility skew chart below shows that Bloomberg has estimated[...]

  • Market News | Nov 18, 2015, 12:31 PM

    More Tools for Managing Global Exposure - Added Expirations for Options on MSCI Indexes

    More Tools for Managing Global Exposure - Added Expirations for Options on MSCI Indexes

    Today CBOE added three new expirations for options on both the MSCI Emerging Markets Index (MXEF) and on the MSCI EAFE Index (MXEA). There now are six expiration dates for options on the MXEF and MXEA indexes – Nov-20-2015 Dec-18-2015 Jan-15-2016 Mar-18-2016 Jun-17-2016 Sep-16-2016 MXEF AND MXEA – PRICES AND IMPLIED VOLATILITY Below are two charts with daily closing values for index prices and the 30-day at-the-money (ATM) implied volatility estimates from Bloomberg. This month, the[...]

  • Market News | Aug 27, 2015, 5:33 PM

    Interested in Managing Global Portfolio Exposure? Explore Options on MSCI Indexes

    Interested in Managing Global Portfolio Exposure? Explore Options on MSCI Indexes

    Interest in managing global portfolio exposure has grown in recent weeks. As shown in the price charts below, over the five-trading-day period from August 17 through August 24 – Two key global stock indexes – the MSCI EAFE Index (MXEA) and MSCI Emerging Markets Index (MXEF) – both fell by more than 5%; Several volatility indexes rose considerably – the CBOE Emerging Markets ETF Volatility Index (VXEEM) rose 120%; CBOE EFA ETF Volatility Index (VXEFA) rose 112%, and CBOE China[...]

  • Market News | Education | Jul 14, 2015, 1:25 PM

    Comparing S&P 500 and MSCI EAFE Performance

    Comparing S&P 500 and MSCI EAFE Performance

    CBOE launched option trading on the MSCI EAFE (MXEA) index a couple of months ago. MXEA represents the performance of developed equity markets outside of the United States. There are over 900 stocks contributing to the index that cover over 20 different developed countries. As a former spread trader I always like to take a look at the performance of similar markets. Today I’m going to cover the relationship between MXEA and the S&P 500 (SPX). We have data going back to January 2000 so the[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jul 7, 2015, 12:15 PM

    Weekly MSCI Index Review - 7/7/2015

    Weekly MSCI Index Review - 7/7/2015

    Tuesday of each week is the time we have set aside to discuss international markets on the CBOE Options Hub. Recently CBOE launched index option trading on two of the most widely followed equity market indexes that depict performance for equity markets outside the United States. The MSCI EAFE Index (MXEA) measures the performance of equities in developed markets outside of North America and the MSCI Emerging Markets Index (MXEF) focuses on emerging markets such as China, South Korea, and India. The[...]

  • Market News | Jul 7, 2015, 9:52 AM

    Options on MSCI EAFE and EM Indexes – Bigger Notional Size and Added Expirations

    Options on MSCI EAFE and EM Indexes – Bigger Notional Size and Added Expirations

    CBOE recently launched trading in options on the MSCI Emerging Markets Index (MXEF) and the MSCI EAFE Index (MXEA).CBOE's options on MSCI indexes are designed to provide investors different ways to efficiently gain exposure to the global equity markets and execute risk management, hedging, asset allocation and income generation strategies. ADDED EXPIRATION DATES At the launch of options on the MSCI EAFE (MXEA) and MXEF indexes, a number of institutional customers expressed great interest in the new[...]

  • Market News | Trader Talk | Apr 23, 2015, 6:58 PM

    Block Trade Analysis - EEM Ratio Spread

    Block Trade Analysis - EEM Ratio Spread

    Late Wednesday a big trader came in who appears to have a pretty specific opinion about the Emerging Market Sector.   With less than an hour to go in the trading day there was a buyer of 25,000 EEM May 43.50 Calls at 0.66 who then also sold 50,000 EEM May 44.50 Calls for 0.26. The net result was a trade that does well if EEM moves higher over the next few weeks but not too high. The payoff diagram below shows how this works with a discussion to follow. If held to expiration, this trade[...]

  • Technical Analysis & Charts | Education | Futures | Apr 21, 2015, 10:40 AM

    $3.7 Trillion in A.U.M. Tracks EAFE and E.M. Indexes, as First-ever Index Options Launch

    $3.7 Trillion in A.U.M. Tracks EAFE and E.M. Indexes, as First-ever Index Options Launch

    On Tuesday April 21 CBOE launched its first-ever trading in cash-settled options on two MSCI indexes – the MSCI Emerging Markets Index (MXEF) and the MSCI EAFE Index (MXEA). Options on the MSCI Emerging Markets Index and the MSCI EAFE Index are designed to enable investors to efficiently hedge and manage their non-U.S. equity portfolio exposures, to diversify their portfolios, or to generate added income. $TRILLIONS IN ASSETS UNDER MANAGEMENT In mid-2014 the combined assets under management[...]

  • Market News | Trader Talk | Education | Apr 14, 2015, 2:30 PM

    New Index Option Trading Opportunities at CBOE

    New Index Option Trading Opportunities at CBOE

    Next week, specifically Tuesday April 21st, CBOE will roll out option trading on two indexes calculated by MSCI. The MSCI EAFE (Europe, Australasia, and Far East) and MSCI Emerging Markets (EEM) Index will be the first two of several index option markets based on the MSCI family of indexes that will have listed options available for trading at CBOE. These two new markets will give money managers an efficient method for managing risk exposure to equity markets outside the United States. There will[...]

  • Market News | Mar 11, 2015, 11:00 AM

    Fund Managers Request CBOE Options on MSCI Indexes, Which Will Launch April 21

    Fund Managers Request CBOE Options on MSCI Indexes, Which Will Launch April 21

    Regarding the possibility of launching new options on MSCI global indexes, in the past month I have received positive feedback from more than a dozen managers of options-based funds that are listed in a new 2015 white paper. In the past decade a number of managers have requested new CBOE options on MSCI’s global indexes. CBOE announced an April 21 launch date for cash-settled products on two of the world’s best known global indexes – Options on the MSCI EAFE® Index (MXEA),[...]