SPX Archives - Cboe Blogs

  • Strategy | Trade Ideas | Sep 23, 2015, 2:46 PM

    Trade Idea in SPX: Broken Wing Iron Butterfly

    Trade Idea in SPX: Broken Wing Iron Butterfly

    Define Broken Wing  Iron Butterfly:  call credit spread plus put credit spread with either the put side or call side narrower than the other one. Dan’s example of a Broken Wing  Iron Butterfly: I am going out in duration about 23 days in SPX using the October expiration. I am selling the call credit spread with the width 30 wide and the put credit spread with the width 40 wide. This gives less risk on the upside and more risk on the downside. Both credit spreads are selling the[...]

  • Market News | Sep 22, 2015, 10:00 AM

    The Fed Blinked, and That Wasn't a Good Thing

    The Fed Blinked, and That Wasn't a Good Thing

    We can all take heart that the Fed is still supporting the global markets. But if the message of the market is any indication, then this may be the wrong approach.  I suspect this was a contentious meeting, the committee struggling with a pivot to tighter policy.  Simply put, the current funds rate near zero has been in place for more than six years, and while the recovery is not anything hoped for, extremely generous policy has passed its time.  The market remains confused by policy[...]

  • Market News | Sep 21, 2015, 5:08 PM

    RMC Europe Day 1 Preview

    RMC Europe Day 1 Preview

    On Monday September 28th the European version of CBOE’s Risk Management Conference gets underway in Geneva, Switzerland. The conference kicks off with Matt Moran and Bill Speth from CBOE discussing the wide variety of Benchmark Indexes calculated and disseminated by CBOE.  The theme to this discussion could be something old and something new.  CBOE was the pioneer in creating strategy benchmark indexes with the CBOE S&P 500 BuyWrite Index.  This and a handful of other established[...]

  • Market News | Sep 21, 2015, 10:45 AM

    Markets, Fed & The Dollar - Weekly Market Outlook 

    Markets, Fed & The Dollar - Weekly Market Outlook 

    What started out as a fairly bullish week didn't end as one. The Federal Reserve's decision to not raise the nation's key interest rate inspired just enough doubt about the health of the global economy to send stocks lower on Friday. It was just enough of a stumble to pull stocks back into the red for the entire week. And yet, there's still a way for the pullback to stop before it gets started in earnest. We'll dissect that narrow path below, after taking a look at last week's key economic numbers. Economic[...]

  • Market News | Sep 14, 2015, 10:14 AM

    Dollar Caution - Weekly Market Outlook

    Dollar Caution - Weekly Market Outlook

    The market may have peeled back off of its highs hit last week, but even with that dip the S&P 500 (SPX) (SPY) managed to close on Friday a solid 2.0% better than where it ended the prior Friday. It remains to be seen if stocks can sustain the uptrend; there are strong technical arguments from both sides of the fence. The good news/bad news is, things should come to a head this week and force the bulls and the bears to play their hand. Once they do (for better or worse), the market will get much[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Sep 12, 2015, 10:43 AM

    The Week in Volatility Indexes and ETPs - 9/8 - 9/12

    The Week in Volatility Indexes and ETPs - 9/8 - 9/12

    The VXST – VIX  - VXV – VXMT curve shifted dramatically to the downside last week in response to the S&P 500 recovering about 2% of recent losses.  The highlight here for me is that VXST is still at a premium to VIX, although the difference is very slight.  All eyes are on the Fed this coming week.  I’m going to attribute this short term volatility premium to the market preparing for the known unknown of how the financial markets will react to the Fed statement. As[...]

  • Market News | Trader Talk | Strategy | Trade Ideas | Sep 9, 2015, 3:05 PM

    Trader Taking Advantage of SPX Weeklys and Extended Trading Hours

    Trader Taking Advantage of SPX Weeklys and Extended Trading Hours

    Once a week I like to report about a block trade in this space.  This week I’m going to discuss a trade, but it does not qualify as a block trade.  In fact it is a one lot.  However, this trade is pretty interesting as it takes advantage of two recent developments in the option markets - Weeklys and Extended Trading Hours. I have neighbor who is a pretty frequent trader in the SPX option and S&P futures market.  We’ll call him Larry to protect his identity. [...]

  • Market News | Sep 8, 2015, 2:53 PM

    Key Levels & Fed Expectations - Weekly Market Outlook

    Key Levels & Fed Expectations - Weekly Market Outlook

    The market never could get the rebound rally from two weeks ago restarted last week. In fact, between Tuesday's near -3% stumble and Friday's 1.5% lull, the S&P 500 (SPX) (SPY) finished the week on the defensive more so than the offensive. The bulls still have their work cut out for them. And yet... While stocks are facing the wrong direction, stocks are still on the fence, and the right nudge -- whether it be a recovery in China or some encouraging interest rate news from the Fed -- stocks[...]

  • Market News | Sep 4, 2015, 12:08 PM

    The Weekly Options News Roundup

    The Weekly Options News Roundup

    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. Long Live Volatility Traders are hopping on the VIX roller coaster, taking advantage of the recent volatility in the market. But is volatility here to stay? “VIX to Investors: Fade the Decline,” Steve Sears, Barron’s http://on.barrons.com/1JKfBae “Options Premium Sellers Make Hay While Volatility[...]

  • Market News | Sep 4, 2015, 10:25 AM

    Weekly Stock Market Commentary - Intermediate-term Outlook Remains Bearish - 9.4.15

    Weekly Stock Market Commentary - Intermediate-term Outlook Remains Bearish - 9.4.15

    Some of the intermediate-term indicators seem ready to capitulate and issue buys, but the overall picture is far from "all clear" at this point. Despite recurring volatility, $SPX has traded in a new range in the last couple of weeks -- 1870 to 1990. There has been a lot of talk in the media about a "retest" of the lows, where amateur technicians are saying that the market "almost always" retests the lows of a sharp selloff. In fact, with so many people looking for a[...]

  • Market News | Aug 31, 2015, 12:06 PM

    Volatility, Economy & The Fed - Weekly Market Outlook

    Volatility, Economy & The Fed - Weekly Market Outlook

    What a wild week! Perhaps the wildest we've seen in years, with a 5.3% plunge over the course of the first two days of last week more than wiped away by the 6.4% rebound seen over the course of the last three. We're still in the hole by more than 5% since the pullback started two weeks ago, but given the swings we're clearly capable of making now, that gap could be closed in just a couple of days. On the other hand, volatility is a two-way street - we could just as easily be seeing new multi-month[...]

  • Market News | Aug 28, 2015, 3:30 PM

    Weekly Stock Market Commentary: Intermediate-Term Indicators Remain Negative

    Weekly Stock Market Commentary: Intermediate-Term Indicators Remain Negative

    The relative calm of the stock market trading in a range for six months was shattered in recent days. As recently as August 18th, all was calm. But beginning with a sharp 17-point drop in $SPX on the 19th, the rout was on. The support area at 1980-2000 was blown away, but it may offer some resistance on the way back up. There should also be major resistance at the 2040 level. Meanwhile, Monday's lows at 1870 represents support. If that is violated, last October's lows at 1820 are the next support[...]

  • Strategy | Aug 26, 2015, 2:16 PM

    Surviving Market Volatility Again

    Surviving Market Volatility Again

    This past week was a difficult one for markets.  That is probably an understatement, as the SPX 500 fell a stunning 5% during the week, the Dow Industrials dropped more than 530 points, or more than 3%.  It was the worst week in nearly a year and set the indices back to losses in 2015.  Seems like a big move, right?  It was 'only' 3%, but to put that into context - in 1987 the Dow Industrials dropped a similar amount, or 508 points.  But that was a massive crash, falling[...]

  • Market News | Aug 25, 2015, 2:41 PM

    Around-the-Clock Trading of VIX and SPX Soars in Recent Days

    Around-the-Clock Trading of VIX and SPX Soars in Recent Days

    CBOE Holdings now offers Extended Trading Hours (ETH) on key popular index futures and options contracts -- to provide investors with tools to hedge and to take advantage of market opportunities as they happen. www.cboe.com/ETH. In recent days many investors have become concerned about falling share prices on stock exchanges in Asia, and on August 24 the trading volumes during ETH soared to 140,811 for VIX futures, 21,612 for VIX options and 8,407 for S&P 500 (SPX) options. DAILY VOLUME DURING[...]

  • Market News | Futures | Aug 24, 2015, 8:27 AM

    Record Volume Day for CBOE and SPX Options, as VIX Index Has Its Biggest One-Week Jump

    Record Volume Day for CBOE and SPX Options, as VIX Index Has Its Biggest One-Week Jump

    This past week the CBOE Volatility Index® (VIX®) rose 118.5%, its largest move ever (in percentage terms) in one calendar week. On Friday CBOE®, C2 Exchange and the CBOE’s S&P 500® (SPX) options all experienced record volume days, with estimated volume of 11 million options contracts traded on CBOE.  A news report at Marketwatch noted –“Across the globe, investors dumped anything with a whiff of “risk” as an economic slowdown in China accelerates,[...]