RUT Archives - CBOE Blogs

  • Market News | Trader Talk | Jun 23, 2015, 4:06 PM

    This Friday Completes the 2015 Russell Reconstitution Process

    This Friday Completes the 2015 Russell Reconstitution Process

    The last Friday of June means different things to different people. When I was growing up, that was the day before the Rhoads family embarked on their annual vacation to the Florida Gulf Coast. Now that I’m all grown up (which may be debatable at times) and spend most of my time focusing on the financial markets, the last Friday in June represents the annual restructuring of the Russell family of indexes. This process is commonly referred to as the Russell Reconstitution. A couple of weeks[...]

  • Market News | Jun 21, 2015, 9:30 AM

    The Week in Russell 2000 Trading - 6/15 - 6/19

    The Week in Russell 2000 Trading - 6/15 - 6/19

    Small cap stocks dominated last week as the Russell 2000 (RUT) rose 1.55% and even put up an all-time record close on Thursday. Large cap stocks fared OK with the Russell 1000 (RUI) rising 0.66% last week, but unlike the RUT, RUI did not manage to put in a new all-time closing high. We have almost reached the middle of the year and so far RUT is up 6.64% while RUI has risen 3.05%. Large cap expected volatility is best represented by the CBOE Volatility Index (VIX) which was a tad higher last week,[...]

  • Market News | Jun 19, 2015, 12:45 PM

    BXR & RUT Indexes Hit All-Time Highs, As Interest in Small-Caps Heats Up

    BXR & RUT Indexes Hit All-Time Highs, As Interest in Small-Caps Heats Up

      Yesterday (June 18) was a key day for small-cap instruments, as shown by these facts – The Russell 2000 Index (RUT) (the key gauge of for U.S. small-cap stocks) hit an all-time daily closing high of 1284.68; The CBOE Russell 2000 BuyWrite Index (BXR) (the key gauge for use of an RUT index options buywrite strategy) hit an all-time daily closing high of on 217.68; Daily volume for options on the Russell 2000 (RUT) rose to 131,638 contracts, the highest level in recent weeks. RUT CHART THREE[...]

  • Market News | Trader Talk | Futures | Jun 16, 2015, 7:14 PM

    2015 Russell Reconstitution Update

    2015 Russell Reconstitution Update

    Each June the Russell family of equity indexes are adjusted to reflect changes in the markets.  This annual process is commonly referred to as the Russell Reconstitution.   The Reconstitution occurs once a year in order to keep the cost associated with maintaining an index portfolio at a minimum or specifically to keep trading costs low. We are now half way through the Russell Reconstitution with two of the four steps behind us.  The almost month long process begins on the last[...]

  • Market News | Jun 14, 2015, 11:30 AM

    The Week in Russell 2000 Trading - 6/8 - 6/12

    The Week in Russell 2000 Trading - 6/8 - 6/12

    Small cap stocks continue the recent domination over large caps with the Russell 2000 outperforming the Russell 1000 again this week.  RUT gained 0.32% while RUI was up only 0.06%.  This puts the Russell 2000 higher by 5.01% for the year and the Russell 1000 up 2.27%.  The widening performance gap shows up in the price chart below where I indexed both the Russell 2000 and Russell 1000 to 100 at the beginning of the year. The CBOE Russell 2000 Volatility Index (RVX) was[...]

  • Market News | Jun 12, 2015, 2:54 PM

    The Weekly Options News Roundup – 6/12/2015

    The Weekly Options News Roundup – 6/12/2015

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast and online and social media outlets. Bracing for Volatility While volatility continues to rattle the bond and currency markets (see TYVIX Index), options traders believe it’s a matter of ‘when’ -- not ‘if’ -- volatility returns to equities.  Traders are moving to establish hedges in anticipation of higher volatility[...]

  • Blogging Options | Jun 11, 2015, 10:49 AM

    CBOE Mid-Day Update 6.11.15

    CBOE Mid-Day Update 6.11.15

    Volatility as an asset class Citrix (CTXS) is recently up $3.86 to $68.94 on Elliott Associates reports 7.1% stake, saying shares worth $90-$100 with changes. June call option implied volatility is at 34, July is at 28, September is at 29; compared to its 52-week range of 17-37. Lululemon (LULU) is recently down $1.50 to $65.23 on company founder Dennis "Chip" Wilson has filed to sell his family's entire 20.1M share stake in the company.  June weekly call option implied volatility[...]

  • Market News | VIX | Trader Talk | Futures | Jun 7, 2015, 2:30 PM

    The Week in Russell 2000 Trading - 6/1 - 6/5

    The Week in Russell 2000 Trading - 6/1 - 6/5

    Small cap stocks put up a great week last week with the Russell 2000 (RUT) rising 1.16% while the large cap oriented Russell 1000 (RUI) lost 0.59%. The chart below shows RUT pulling away from RUI for the second time this year – the first time beginning in early March before the lead being ceded to the Russell 1000 for a couple of weeks in May.  As of Friday, RUT is up 4.67% for the year while RUI has gained 2.21%. The difference between large cap and small cap volatility was[...]

  • Market News | VIX | Trader Talk | Futures | May 31, 2015, 10:10 AM

    The Week in Russell 2000 Trading - 5/26 - 5/29

    The Week in Russell 2000 Trading - 5/26 - 5/29

    Stocks were lower last week, but the small cap sector seemed to hold up a little better than large caps. The Russell 2000 (RUT) was down 0.45% while the Russell 1000 (RUI) was under a bit more pressure dropping 0.88%. RUT had lost the 2015 performance lead to the large cap focused RUI a few weeks ago, but took the lead back in late May. This performance margin widened last week and RUT is now up 3.47% for the year with the RUI up 2.82%. It is a lead, but definitely a slim margin which can change[...]

  • Market News | VIX | Trader Talk | Strategy | May 25, 2015, 3:43 PM

    The Week in Russell 2000 Option Trading - 5/18 - 5/22

    The Week in Russell 2000 Option Trading - 5/18 - 5/22

    Small cap stocks took the lead from large cap stocks for 2015 last week as the Russell 2000 (RUT) was up 0.66% while the Russell 1000 (RUI) rose only 0.20%. That places RUT slightly in the lead up 3.94% for 2015 versus RUI up 3.73% for the year. I came across an article from Friday that was discussing how low volatility is for the Russell 2000. I always like to think of volatility in relative terms and for the CBOE Russell 2000 Volatility Index (RVX) this means comparing it to VIX. Using[...]

  • Trader Talk | Strategy | Trade Ideas | May 23, 2015, 8:28 AM

    Block Trade Analysis - $RUT 850 / 1160 Bull Put Spread

    Block Trade Analysis - $RUT 850 / 1160 Bull Put Spread

    Author's note - this is an updated blog from last week correcting the strike of the short put.   Thanks to Robert Shen for the catch. Volume continues to rise in the Russell 2000 (RUT) option arena and my choices among block trades to discuss are on the rise as well. A trade from this past Tuesday caught my eye for three reasons. First, it was not a short dated deep out of the money credit spread – most of the trades I’ve come across and discusses recently in[...]

  • Market News | VIX | Trader Talk | Futures | May 17, 2015, 9:39 AM

    The Week in Russell 2000 Trading - 5/11 - 5/14

    The Week in Russell 2000 Trading - 5/11 - 5/14

    Small cap stocks narrowed the performance gap with large cap stocks last week. The Russell 2000 (RUT – 1243.95) rose 0.73% which places 2015’s price performance at up 3.26% while the Russell 1000 (RUI – 1184.73) gained 0.37%. Large cap stock performance is still slightly better than year to date small cap performance as the Russell 1000 is up 3.53% for 2015. The chart below adjusts both indexes to start the year at 100 for an easy visual comparison. The CBOE Russell[...]

  • Market News | Technical Analysis & Charts | VIX | Trader Talk | May 11, 2015, 4:00 PM

    Will The Nasdaq & Russell 2k Drag The SPX Back Down? - Weekly Market Outlook

    Will The Nasdaq & Russell 2k Drag The SPX Back Down? - Weekly Market Outlook

    You have to give credit to the bulls - they're not going down without a fight. In fact, last week's market rebound right from the brink of disaster was another impressive comeback. On the other hand, as impressive as Friday's bounce was, stocks still aren't over the big hurdle that's been holding them back since February.  Will this be the time we break through past the recent choppiness and trend higher? We'll draw that line in the sand after recapping last week's big economic news[...]

  • The Week for Russell 2000 Trading - 5/4 - 5/8

    The Week for Russell 2000 Trading - 5/4 - 5/8

    Small cap stocks played a little catch up last week with the Russell 2000 rising 0.55% while the Russell 1000 gained 0.35%.   Like all broad based market indexes in the US last, the positive performance came from the market’s reaction to Friday’s employment report. Large cap stocks actually ruled the day on Friday with the benchmark Russell 1000 gaining 1.2% while the Russell 2000 rose by about 0.75%. For a perspective on the relative performance of large and small cap stocks[...]

  • Market News | Trader Talk | Strategy | May 3, 2015, 12:00 PM

    The Week in the Russell 2000 - 4/27 - 5/2

    The Week in the Russell 2000 - 4/27 - 5/2

    For most of 2015 small cap stocks, as measured by the Russell 2000, set the pace outperforming the large cap dominated Russell 1000. Last week the tables turned quickly as the Russell 2000 dropped over 3% while the Russell 1000 was down only a little over 0.5%. This is the biggest weekly divergence between large cap and small cap stocks for 2015 and largest since mid-July of last year. In fact, going back to December 1992 there have only been 45 weeks (not including last week) where the Russell 1000[...]