RVX Archives - CBOE Blogs

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | May 28, 2016, 9:18 AM

    Weekend Review - Russell 2000 Index and Volatility - 5/23 - 5/27

    Weekend Review - Russell 2000 Index and Volatility - 5/23 - 5/27

    Small cap stocks continue to show some strength with the Russell 2000 (RUT) beating the Russell 1000 (RUI) for the second week in a row. Is this the beginning of a streak? RUT rose 3.43% last week while the large cap focused RUI gained 2.28%. For the year RUT is now up 1.28%, still lagging RUI which is up 2.63%. The RVX / VIX premium remains at the high end of this year’s range, despite the strong performance from small cap stocks. It may be that the uncertainty about the Fed’s[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 14, 2016, 5:14 PM

    Weekend Review - Russell 2000 Index and Volatility - 5/9 - 5/13

    Weekend Review - Russell 2000 Index and Volatility - 5/9 - 5/13

    According to some of the headlines I came across this week, stock market participants are worried about economic growth. This concern about growth showed up in the relative performance of the Russell 2000 (RUT) and Russell 1000 (RUI) this week as RUT was down twice as much as RUI (-1.10% versus -0.54%). This places RUT down a little less than 3% for the year and RUI precariously in the green by a single basis point. Concerns over growth continue to show up in the relationship between[...]

  • Weekend Review - Russell 2000 Options and Volatility - 5/2 - 5/6

    Weekend Review - Russell 2000 Options and Volatility - 5/2 - 5/6

    Small cap stocks get so close and then seem to fall back when reaching unchanged on the year or catching up with the performance of large cap stocks. This week the Russell 2000 (RUT) dropped 1.44% while the large cap focused Russell 1000 (RUI) lost 0.49%. This places RUT in the red by 1.86% for 2016 while RUI is still up 0.55%. With the underperformance of small cap stocks last week came a relative rise in the CBOE Russell 2000 Volatility Index (RVX). The RVX / VIX premium began the[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 1, 2016, 9:24 AM

    Weekend Review - Russell 2000 Index and Volatility - 4/25 - 4/29

    Weekend Review - Russell 2000 Index and Volatility - 4/25 - 4/29

    Stocks had a tough week and the Russell 2000 (RUT) was down 1.4% on the week and took the small cap benchmark from positive to negative territory for 2016. Large cap stocks held up a bit better with the Russell 1000 (RUI) losing 1.26% and the large cap benchmark remains positive on the year by just over 1%. Even though RUT underperformed a bit, the CBOE Russell 2000 Volatility Index (RVX) premium to VIX dropped a bit and both volatility indexes climbed last week.  The RVX / VIX[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Apr 24, 2016, 2:26 PM

    Weekend Review - Russell 2000 Index and Volatility - 4/18 - 4/22

    Weekend Review - Russell 2000 Index and Volatility - 4/18 - 4/22

    For the first time in 2016 the Russell 2000 (RUT) moved into positive territory last week. A gain of 1.4% places RUT just under 1% in the green for the year. Small caps also closed the gap with large cap stocks as the Russell 1000 (RUI) was up by 0.60% and is less than 1.5% higher than RUT for the year. Despite the run in small caps, the CBOE Russell 2000 Volatility Index remained relatively high compared to VIX last week. I take this as being an indication that there are not a[...]

  • Weekend Review - Russell 2000 Options and Volatility - 4/11 - 4/15

    Weekend Review - Russell 2000 Options and Volatility - 4/11 - 4/15

    One of my favorite books when I was a wee lad was “The Little Engine That Could”. When I see the Russell 2000 (RUT) coming very close to going from red to green on the year that story pops in my mind as I personify RUT saying, “I think I can” with the small cap benchmark approaching unchanged on the year. Last week RUT was up by 3% which places the index just 44 basis points in the red for 2016. Pretty impressive for an index that was down as much as 16% on the year.[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | Apr 9, 2016, 8:30 AM

    Weekend Review - Russell 2000 Options and Volatility - 4/4 - 4/8

    Weekend Review - Russell 2000 Options and Volatility - 4/4 - 4/8

    I started last week at the FTSE Russell offices participating in a panel discussion that focused on small cap stocks. It was hard to come up with much on the positive side as the Russell 2000 has struggled over the past few months. Every once in a while it appears RUT is about to gain upside traction, but those glimmers of hope seem to be short lived. Last week RUT was down 1.8% while the large cap focused Russell 1000 (RUI) was down about 1.2%. RUI finished the week at up 0.02% for 2016 while RUT[...]

  • Education | Apr 6, 2016, 2:21 PM

    The Return of RUT Fest

    The Return of RUT Fest

    Last September The Options Institute hosted a full day of webcasts focusing on trading Russell 2000 Options that we referred to as "RUT Fest".  By popular demand RUT Fest returns on Tuesday April 12th with all four of the instructors from CBOE being joined by Kerry Given from Parkwood Capital LLC and CBOE Live Vol's Kevin Nichols.  We will discuss a range of topics related to Russell 2000 Index Options, starting with the basics and moving on to spread trading, strategy[...]

  • Weekend Review - Russell 2000 Index and Volatility - 3/28 - 4/1

    Weekend Review - Russell 2000 Index and Volatility - 3/28 - 4/1

    The Russell 2000 (RUT) had a great week rising 3.5% while the large cap focused Russell 1000 (RUI) also did pretty well gaining about 1.9%. For the year RUI went from down to up and is now in the green by 1.23% while the Russell 2000 is still in the red by 1.60%. A repeat of last week and RUT will join RUI in positive territory for 2016. I put lots of charts together every weekend and there’s always one or two that catch my eye. This week’s is below as despite the outperformance[...]

  • Market News | VIX | Trader Talk | Futures | Mar 27, 2016, 10:43 AM

    Weekend Review - Russell 2000 Options and Volatility - 3/21 - 3/24

    Weekend Review - Russell 2000 Options and Volatility - 3/21 - 3/24

    The Russell 2000 (RUT) gave up 2% last week after making a little run at closing the 2016 gap with the Russell 1000 (RUI).  RUT is now down just about 5% for 2016.  There was a glimmer of hope for large caps this time last week, but RUI gave up 0.70% last week and is now 0.65% lower for 2016. The concern for small cap stocks continues to rise relative to large cap stocks in the form of the ratio of the CBOE Russell 2000 Volatility Index (RVX) relative to VIX.  The gap between the[...]

  • Market News | VIX | Blogging Options | Trader Talk | Futures | Trade Ideas | Mar 19, 2016, 2:38 PM

    Weekend Review - Russell 2000 Options and Volatility - 3/14 - 3/18

    Weekend Review - Russell 2000 Options and Volatility - 3/14 - 3/18

    I guess I have to try to work some sort of St. Patrick’s Day theme in here since the Russell 1000 (RUI) went from red to green on the year last week, but I’m too worn out to come up with anything clever.  Also, it is difficult to get too excited over an index that is up 0.05% for the year.  Since I’m trying to be funny, here’s a lame attempt, the Russell 2000 (RUT) remains in a rut for 2016, even after gaining 1.3% last week the small cap benchmark is still 3% lower[...]

  • VIX | Blogging Options | Trader Talk | Education | Futures | Trade Ideas | Mar 13, 2016, 10:04 AM

    Weekend Review - Russell 2000 Options and Volatility - 3/7 - 3/11

    Weekend Review - Russell 2000 Options and Volatility - 3/7 - 3/11

    After stumbling a bit last week both the Russell 1000 (RUI) and Russell 2000 (RUT) moved higher with RUI up by about 1% and RUT rising 0.5%.  this is the first week in a while where RUT under performed RUI and the small cap benchmark is now lagging the large cap Russell 1000 by 3% for 2016. The relative implied volatility ticked up a bit for the CBOE Russell 2000 Volatility Index when compared to VIX.  The 2016 closing high for the RVX / VIX ratio occurred on February 1st and[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | Mar 6, 2016, 7:03 PM

    Weekend Review - Russell 2000 Options and Volatility - 2/29 - 3/4

    Weekend Review - Russell 2000 Options and Volatility - 2/29 - 3/4

    The Russell 2000 (RUT) continues to show some resilience rising over 4% last week and closing the 2016 performance gap with the Russell 1000 (RUI). The long term average for the CBOE Russell 2000 Volatility Index (RVX) relative to VIX has been about 20% which is where we are now.  For some time back in the fourth quarter of last year we spent much more time closer to parity between RVX and VIX. An interesting trade was executed on Friday around lunchtime, with RUT trading near[...]

  • Weekend Review - Russell 2000 Options and Volatility - 2/22 - 2/26

    Weekend Review - Russell 2000 Options and Volatility - 2/22 - 2/26

    Small caps played some catch up again last week with the Russell 2000 (RUT) gaining about 2.7% while the large cap oriented Russell 1000 (RUI) was up 1.75%.  There is still more work for RUT to do as it is underperforming RUI by about 3.6% in 2016. VIX made a new 2016 low last week while the CBOE Russell 2000 Volatility Index (RVX) did not.  This is surprising since small cap stocks outperformed large cap stocks last week, but I’m learning that how RVX and VIX interrelate[...]

  • Market News | VIX | Trader Talk | Strategy | Feb 20, 2016, 7:12 PM

    Weekly Review Russell 2000 Options and Volatility 2/16 - 2/19

    Weekly Review Russell 2000 Options and Volatility 2/16 - 2/19

    Small caps had a great holiday shortened week with the Russell 2000 (RUT) rising almost 4%.  RUT also played some catch up with the Russell 1000 (RUI) as the large cap benchmark was up a little less than 3%.  However, RUT has a long way to go to catch up with RUI for 2016.  However, there’s a lot of trading left to be done for 2016. The CBOE Russell 2000 Volatility Index (RVX) and VIX both dropped dramatically last week.  However, they dropped in line with each[...]