Futures Archives - Cboe Blogs

  • Trader Talk | Education | Strategy | Apr 23, 2015, 4:05 PM

    Weekly Weekly's Option Report 4.23.15

    Weekly Weekly's Option Report 4.23.15

    // The titans of tech dominate this week's Weeklys report. Apple, Twitter, Google, Amazon and Microsoft all have earnings coming up in the next few sessions. I’m Angela Miles covering weekly options expiring this Friday and next Friday May 1st. A big night of earning is ahead with Amazon, Google and Microsoft all reporting after the close... Amazon has been getting plenty of options paper flow going into earnings. The[...]

  • Technical Analysis & Charts | VIX | Apr 20, 2015, 10:45 AM

    Trading Range Should Be Settled Soon - Weekly Market Outlook

    Trading Range Should Be Settled Soon - Weekly Market Outlook

    Once again a rally effort that managed to pull the market within reach of a breakout was quelled as the eleventh hour, putting stocks back in the middle of a recent trading range. This third failure - and potential triple top - is likely discouraging to bulls on the sidelines who were waiting for that one last convincing bullish hint before pouring back in.  What are the key market levels to watch here?  We'll dissect the market's current situation, after looking at last week's[...]

  • Market News | VIX | Trader Talk | Futures | Apr 19, 2015, 2:16 PM

    The Week in Small Cap Stocks - 4/13 - 4/17

    The Week in Small Cap Stocks - 4/13 - 4/17

    Last week the Russell 2000 moved lower in line with the large cap focused S&P 500, as the RUT was down 1.02% compared to a 0.99% drop in the S&P 500. One method analysts use to gauge small cap risk relative to large cap risk is by comparing the relative levels of VIX and RVX (CBOE Russell 2000 Volatility Index). The chart below shows the daily close for RVX divided by VIX from the beginning of 2014 through Friday along with the average ratio of 1.34 highlighted on the chart. As[...]

  • Technical Analysis & Charts | VIX | Futures | Apr 17, 2015, 9:51 AM

    Weekly Market Commentary 4.17.15

    Weekly Market Commentary 4.17.15

    There was some positive action this week, but in the end it's still a trading range market.   $SPX moved to the high end of the range almost challenging the all-time highs, but it could not break out on the upside.  There has been some improvement in the status of the other indicators, but unless $SPX can break out to the upside, it will not really matter. Equity-only put-call ratios remain on buy signals, as their 21-day moving averages continue to drop nearly every day. Market breadth[...]

  • 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[...]

  • Technical Analysis & Charts | Education | Apr 14, 2015, 10:00 AM

    Bullish Momentum Meeting High Valuations - Weekly Market Outlook

    Bullish Momentum Meeting High Valuations - Weekly Market Outlook

    The odds may have been a bit stacked against stocks heading into last week, but the market clearly overcame them.  All told, the S&P 500 (SPX) (SPY) gained about 1.7% last week, crossing above some key moving average lines in the process, rekindling the bigger-picture rally. Can it last? There are certainly some hurdles ahead, not the least of which is the market's valuation, which is getting a bit frothy by some measures.  Higher highs are not out of the picture though, because[...]

  • Technical Analysis & Charts | VIX | Apr 10, 2015, 1:45 PM

    Weekly Market Commentary 4.10.15

    Weekly Market Commentary 4.10.15

    The stock market has traded in an ever-narrowing range for over a month now.  The most recent range has been bounded by 2090 on the upside and 2050 on the downside.  But now $SPX is trying to break through 2090.  Even if that is accomplished, there is still considerable overhead resistance at 2110-2120 (the all-time highs).     Most of the other indicators have taken on a more positive slant in the last week or so.  As a prime example, the equity-only put-call[...]

  • Technical Analysis & Charts | VIX | Trader Talk | Education | Apr 6, 2015, 10:00 AM

    Key SPX & VIX Levels to Watch: Weekly Market Outlook

    Key SPX & VIX Levels to Watch: Weekly Market Outlook

    Despite the solid start to the trading week on Monday of last week, Tuesday's and Wednesday's dips cast a shadow of doubt on stocks.  Yes, the S&P 500 (SPX) (SPY) ended the holiday-shortened week with a small gain. But, once again the bulls have a big hurdle right in front of them they'll need to clear first before we can seriously entertain bullish ideas. We'll analyze the current shape of things below, after painting the bigger picture with some broad economic data brushstrokes. Economic[...]

  • Blogging Options | Mar 30, 2015, 2:54 PM

    Where We Stand Now - Weekly Market Outlook

    Where We Stand Now - Weekly Market Outlook

    Even with Friday's bounce, the bulls couldn't do anywhere near enough to undo Wednesday's damage. All told, the S&P 500 (SPX) (SPY) lost 2.2% last week. The results look grim, and several of our key technical indicators are at or near bearish conditions. The breakdown hasn't truly taken hold yet though, and we have to entertain the possibility that the bulls may well take charge again before any pullback is allowed to materialize. We'll look at both sides of the coin below. The first thing we[...]

  • Market News | Technical Analysis & Charts | VIX | Education | Mar 27, 2015, 2:15 PM

    Weekly Market Commentary 3.27.15

    Weekly Market Commentary 3.27.15

    When $SPX broke down through the 2090 support level, that was a very negative sign, especially since stocks failed at the old highs.   There is now strong resistance at 2110-2120 (the February and March peaks), as well as at 2090 (again).  As for support, the initial support level will be 2040, the early March lows.  Below that, there is support at 1970-1990, which is the area of the December and January lows. Equity-only put-call ratios continue to remain on sell signals and are[...]

  • VIX | Strategy | Mar 24, 2015, 9:05 AM

    SPX Weekly Bear Call Spread Analysis

    SPX Weekly Bear Call Spread Analysis

    I’ve seen several trades using RUT options to initiate out of the money credit spreads as of late. However, I just came across a pretty interesting one using SPX options. There was a seller of SPX Mar 27th 2140 Calls at 0.35 who also purchased the SPX Mar 27th 2150 Calls at 0.15 for a net credit of 0.20. As long as the S&P 500 is not over 2140 on the close this coming Friday the credit of 0.20 will result in a profit. The payoff diagram below shows the risk – reward of this trade[...]

  • Technical Analysis & Charts | VIX | Trader Talk | Education | Mar 23, 2015, 2:10 PM

    The Fed Gives A Boost - Weekly Market Outlook

    The Fed Gives A Boost - Weekly Market Outlook

    Thanks to a little help from the Federal Reserve on Wednesday, the market broke out of a three-week-old bearish rut, and in the process may have rekindled a bigger uptrend.  In fact, technically speaking, the uptrend is back underway. We'll handicap the market below.  First, let's run down last week's and this week's economic news. Economic Data There's little doubt as to last week's economic focal point... the release of the minutes from the most recent FOMC meeting. It was an interesting[...]

  • Technical Analysis & Charts | VIX | Education | Futures | Mar 20, 2015, 9:00 AM

    Weekly Market Commentary 3.20.15

    Weekly Market Commentary 3.20.15

    In figure 1, the support at 2040 and the resistance at the recent all-time highs of 2120 are marked as a trading range.  Until $SPX breaks out of that range, it really doesn't have a trend in place.  To support that conclusion, the indicators are somewhat mixed. Equity-only put-call ratios have remained on sell signals during this latest rally. Breadth hasn't been terrific during this rally, but it was strong enough to pull the "stocks only" oscillator into a mildly overbought[...]

  • Blogging Options | Trader Talk | Mar 19, 2015, 12:50 PM

    CBOE Mid-Day Update 3.19.15

    CBOE Mid-Day Update 3.19.15

    Fairly heave option volume mid-day as traders and investors digest removal of "patient" from FED comments, which was expected. SPX traded ~700K contracts, while VIX with 200K and VIX Futures 71K.  Sounds of basketballs bouncing reverberate around trading floors and desks across the US.  GS down $2, PCLN lower by $6.  Volatility as an asset class:  (We'll miss you Gail Osten - Those we held in our arms for a little while, we hold in our hearts forever). Facebook (FB)[...]

  • Technical Analysis & Charts | VIX | Education | Mar 16, 2015, 1:30 PM

    Between A Rock & A Hard Place - Weekly Market Outlook

    Between A Rock & A Hard Place - Weekly Market Outlook

    The third weekly loss in a row has brought the broad market down 2.4% from its recent peak.  In the grand scheme of things, it's not much... not even enough to call a full corrective move.  Even so, there are glimmers of hope that the selloff has run its full course (though bear in mind the short-term momentum is technically near bearish). The good and the bad are dissected below, right after a quick examination of last week's economic news and a preview of this week's economic[...]