RVX Archives - CBOE Blogs

  • Market News | VIX | Trader Talk | Futures | Jul 19, 2015, 7:20 AM

    The Week in Russell 2000 Trading - 7/13 - 7/17

    The Week in Russell 2000 Trading - 7/13 - 7/17

    With Greece finally behind us (for now…) the global economic picture is a bit more stable. This resulted in equity markets rebounding last week. Large caps benefited from the resolution of the Euro issues and the Russell 1000 (RUI) gained 2.24% placing the large cap benchmark up 3.59% for the year. Small cap stocks were higher as well, but the Russell 2000 lagged gaining 1.20%.   There is still a bit of a spread between small cap and large cap performance for 2015 as[...]

  • Market News | Technical Analysis & Charts | Jul 13, 2015, 4:29 PM

    Russell 2000 Risk On/Volatility Off

    Russell 2000 Risk On/Volatility Off

    Today’s market rally including US small-cap stocks is lifting the Russell 2000 to its current level 1264.06 well above its 50 day moving average (1253.67). © 1999-2015 StockCharts.com. All Rights Reserved. Another contributing factor for the Russell 2000 is the net flows of cash leading to the creation of ETFs on the IWM.  ETF.com reports a net flow of $1.158 bln. into IWM for the week of 7/06 – 7/10/15. As a result of the rally, the volatility on the Russell 2000 Index (RVX)[...]

  • Market News | VIX | Trader Talk | Strategy | Jul 12, 2015, 8:22 AM

    The Week in Russell 2000 Trading - 7/6 - 7/10

    The Week in Russell 2000 Trading - 7/6 - 7/10

    The week was quite a roller coaster ride for both the large and small cap segments of the equity market. As the week came to an end the Russell 2000 (RUT) was up 0.30% while the Russell 1000 (RUI) lost 0.03%.  As of Friday RUT is 3.93% higher for the year outperforming RUI by 2.61%. The RVX – VIX relationship tested recent lows on Thursday as it is prone to do when global risk is the big market concern.   On Friday, RUT did outperform RUI a bit (up 1.4% versus 1.2%)[...]

  • Market News | Jul 5, 2015, 7:00 AM

    The Week in Russell 2000 Trading - 6/29 - 7/2

    The Week in Russell 2000 Trading - 6/29 - 7/2

    During all the market excitement on Monday last week the Russell 2000 dropped 2.6% while the large cap focused Russell 1000 lost 2.1%. The real difference between small cap and large cap stocks occurred after the dust settled from Monday. The Russell 1000 was able to gain 0.9% after to finish the week down 1.2% while the Russell 2000 did a whole lot of nothing and finished the week down 2.5%. This is the first time in a while that large cap stocks have dominated and is a bit surprising since the[...]

  • Market News | Jun 29, 2015, 10:59 AM

    Russell 2000 (RVX) Volatility on the Rise

    Russell 2000 (RVX) Volatility on the Rise

    After posting new highs last week (1296.00 on 6/23), the Russell 2000 has slipped in four consecutive days closing Friday at 1279.79 (-1.25%).  With this morning’s markets reacting sharply lower on the news of Greece closing its banks temporarily, a closer look at the CBOE Russell 2000 Volatility Index is warranted.  Traded on the CBOE, the CBOE Russell 2000 Volatility Index options can offer an effective hedge.  As highlighted in the chart below, the CBOE Russell 2000 Volatility[...]

  • Market News | VIX | Trader Talk | Education | Jun 28, 2015, 10:59 AM

    The Week in Russell 2000 Trading - 6/22 - 6/26

    The Week in Russell 2000 Trading - 6/22 - 6/26

    Both indexes were lower last week, but the Russell 2000 (RUT) slightly outperformed the Russell 1000 (RUI) and continued to maintain a wide performance gap for 2015. The chart below indexes both the RUT and RUI to 100 as of the last day of 2014 to get an apples to apples visual of their respective performance. As of Friday RUT was up 6.23% while RUI has gained 2.58% this year. The CBOE Russell 2000 Volatility Index (RVX) was down 0.05 for the week finishing at 16.18 while the CBOE Volatility[...]

  • Market News | Jun 26, 2015, 11:13 AM

    Follow the RVX and RUT Options, as MarketWatch Notes That Today Could Be “Year’s Biggest Trading Day”

    Follow the RVX and RUT Options, as MarketWatch Notes That Today Could Be “Year’s Biggest Trading Day”

      A June 26 news story in MarketWatch noted that – “Stock-trading volume is expected to surge in Friday’s last moments of trading, as the Russell indexes go through their annual routine of adding and removing stocks.  A massive amount of money is linked to the small-cap Russell 2000 RUT … the large-cap Russell 1000 RUI, … and their siblings. The index funds that track these benchmarks must buy or sell stocks as result of this summertime shakeup that’s[...]

  • 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 | 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[...]

  • VIX | Blogging Options | Trader Talk | Jun 10, 2015, 8:44 AM

    Blogging Options: CBOE Morning Update 6.10.15

    Blogging Options:  CBOE Morning Update 6.10.15

    Volatility as an asset class Netflix (NFLX) is recently up $7.55 to $654.70 in the premarket after UBS raised its price target to $722 from $600 citing international launches, its superior content position, solid subscriber growth and reasonable valuation. June weekly call option implied volatility is at 26, June is at 27, July is at 40, October is at 37; compared to its 52-week range of 24 to 87. Tesla (TSLA) is recently down 50c to $255.50 in the premarket after announcing the retirement of CFO[...]

  • 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 | Jun 4, 2015, 2:36 PM

    CBOE Russell 2000 BuyWrite Index (BXR) Hits All-time High

    CBOE Russell 2000 BuyWrite Index (BXR) Hits All-time High

    On Wednesday, June 3, the CBOE Russell 2000 BuyWrite Index (BXR) hit an all-time daily closing high of 215.96. The BXR is a benchmark index that measures the performance of a theoretical portfolio that sells Russell 2000 Index (RUT) call options, against a portfolio of the stocks included in the Russell 2000 Index. A "buy-write," also called a covered call, generally is considered to be an investment strategy in which an investor buys a stock or a basket of stocks, and also sells call options[...]

  • 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[...]