• Jul 12, 2017, 3:20 PM

    What's Trading Now? Pepsi Condors (PEP)

    What's Trading Now? Pepsi Condors (PEP)

    Other trades of note: iShares Russell 2000 (IWM) at 141.55 a 1x2 Ratio spread traded. The trader bought 3,020 Jul 28th 139 Puts and sold 6,040 Jul 28th 134 Puts paying 31 cents. Twitter (TWTR) at 19.42, a Bear Call Spread traded 2,000 times. The trader sold the Dec 15th 20/25 spread for a credit of 1.31. Apple, Inc. (AAPL) at 145.45, a Bull Call Spread traded 8,500 times. The trader bought the Aug 18th 155 /160 spread paying 56 cents. iShares iBoxx High Yield Corporate Bond (HYG) at 88.05[...]

  • Jul 11, 2017, 2:42 PM

    What's Trading Now? Amazon on Prime Day (AMZN)

    What's Trading Now? Amazon on Prime Day (AMZN)

    Other trades of note: General Electric (GE) at 26.20, a Bull Call Spread traded 18,918 times. The trader bought the Aug 18th 27/29 spread paying 26 cents. Utilities Select Sector SPDR ETF (XLU) at 51.31, a Risk Reversal traded 10,000 times. The trader sold the Dec 15th 50 Puts and bought the Dec 15th 53 Calls for a credit of 58 cents.   Western Digital (WDC) at 91.96, a 1x2 Ratio Spread traded. The trader sold 2,500 Jul 21st 89 Calls at 4.05 and bought 5,000 Jul 21st 93 Calls for 1.82,[...]

  • Jul 11, 2017, 12:00 PM

    Strong Volume for SPXW Options with Monday, Wednesday, Friday and Month-end Expirations

    Strong Volume for SPXW Options with Monday, Wednesday, Friday and Month-end Expirations

    The large-sized SPXW S&P 500 options with p.m.-settlement generated another strong figure of around 600,000 contracts for average daily volume in in June. Key points about SPXW options include – VOLUME. Average daily volume (a.d.v.) for SPXW options in June included 77,069 for the Monday expirations, 107,986 for mid-week expirations, and 267,955 for Friday expirations (see Exhibit 1 below); MANY EXPIRATIONS. SPXW options have expirations on 9 upcoming dates in July (see Exhibit[...]

  • Jul 10, 2017, 4:00 PM

    What's Trading Now? Spirit Airlines (SAVE)

    What's Trading Now? Spirit Airlines (SAVE)

    Other trades of note: With Financial Select Sector SPDR ETF (XLF) at 25.01, a trader bought the Jul 21st 25 Calls for 26 cents and sold the Sep 15th 23 Puts for 19 cents. This traded 11,000 times for a net cost of 7 cents. This may be a bullish play on financials into second quarter earnings as a good portion of the XLF weighting reports over the next couple of weeks.    With iShares MSCI Brazil Capped ETF (EWZ) at 34.52, one trader bought the Jul 21st 35 Calls for 46 cents and sold[...]

  • Market News | Trader Talk | Trade Ideas | Jul 8, 2017, 10:54 AM

    Weekend Review of Russell 2000 Options and Volatility - 7/3/2017 - 7/7/2017

    Weekend Review of Russell 2000 Options and Volatility - 7/3/2017 - 7/7/2017

    Small and large cap stocks finished week in what I will call a statistical tie performance wise.  The Russell 1000 (RUI) gained 0.02% while the Russell 2000 (RUT) was up 0.03%.  If this were an election RUI supporters would be calling for a recount.  I’m pretty convinced RUT is poised for a period of catching up to RUI and I looked smart on Monday as RUT gained 0.80% to RUI’s 0.25% rise, but with an increase in market volatility RUT fell back in line with RUI. The CBOE[...]

  • VIX | Trader Talk | Trade Ideas | Jul 8, 2017, 10:50 AM

    Weekend Review of VIX Options and Futures - 7/3/2017 - 7/7/2017

    Weekend Review of VIX Options and Futures - 7/3/2017 - 7/7/2017

    One a week over week basis VIX didn’t do very much, rising 0.01.  This did occur after VIX visited the mid-12’s on Thursday.  But like all moves higher in VIX lately, it was a short-lived rally.  What is interesting below is the gain in futures.  A week ago, I was talking about how the curve was in a mini-flatting phase.  However, the futures all moved up a bit more than VIX which may be something we look back at as an early indication that the bull market was[...]

  • VIX | Trader Talk | Trade Ideas | Jul 8, 2017, 10:46 AM

    Weekend Review of Volatility Indexes and ETPs - 7/3/2017 - 7/7/2017

    Weekend Review of Volatility Indexes and ETPs - 7/3/2017 - 7/7/2017

    The short end of the SPX volatility spectrum dropped last week which following a holiday-ish weekend is a little surprising to me.  Maybe getting employment out of the way pushed VXST lower relative to the other indexes.  Also note VXV and VXMT outperformed VIX to the upside.  Take my word on this, VXV often leads VIX and is worth keeping an eye on.  The long funds had a good wee with the unleveraged funds gaining over 2% and the leverage long funds rising by almost 5%. [...]

  • Jul 7, 2017, 3:18 PM

    What's Trading? Tesla (TSLA) July Straddle

    What's Trading? Tesla (TSLA) July Straddle

    Other trades of note: Russell 2000 Index (^RUT) at 1406.22, a Bear Call Spread traded 1,284 times. The trader sold the Jul 14th 1,430/1,480 Call spread for a credit of 2.05. Chesapeake Energy Corporation (CHK) at 4.48, a Collar traded 28,000 times. The trader sold the Sept 15th 5 strike calls at 25 cents and paid 25 cents for the Sept 15th 4 strike puts. This position is tied to stock with an obligation to sell at 5.00 or the right to sell at 4.00. iShares Russell 2000 ETF (IWM) at 139.50, a Bull[...]

  • Earnings | Jul 6, 2017, 3:37 PM

    Earnings Week of 7/10/2017 - 7/14/2017

    Earnings Week of 7/10/2017 - 7/14/2017

    We are on the cusp of second quarter earnings with three big banks reporting before the open this coming Friday (C, JPM, WFC).  The numbers below represent the last three year's of stock price reactions to earnings.  Finally, the release dates and times have not been confirmed. 

  • Jul 6, 2017, 2:03 PM

    What's Trading Now?

    What's Trading Now?

    Other trades of note: VanEck Vectors Semiconductor ETF (SMH) at 82.50, a Calendar Spread traded 7,500 times. The trader sold the Jul 21st 80 strike puts and bought the Aug 18th 80 strike puts paying 1.15. PowerShares QQQ ETF (QQQ) at 136.22, a Short Strangle traded 5,000 times. The trader sold the Jul 21st 140 strike calls and the Jul 21st 132.50 strike puts for 1.21.   SPDR Gold Trust ETF (GLD) at 116.36, a Bull Call Spread traded 10,000 times. The trader bought the Sept 15th 120/125 Call spread[...]

  • Jul 3, 2017, 10:17 AM

    Predicting Market Tops and Bottoms is a Loser's Game

    Predicting Market Tops and Bottoms is a Loser's Game

    As the markets continue to move higher amid low volatility, we hear the constant chatter of market tops.  Naturally, these predictions rarely come with any date applied, setting up these foolish prognostications to be right 'at some point in the future', just like how a broken clock is right twice a day.  For investors, these predictions of impending loss and perhaps doom are useless and random, not based in fact or reason.  They are attention grabbers in the media, because they[...]

  • VIX | Trader Talk | Trade Ideas | Jul 2, 2017, 4:01 PM

    Weekend Review of Volatility Indexes and ETPs - 6/26/2017 - 6/30/2017

    Weekend Review of Volatility Indexes and ETPs - 6/26/2017 - 6/30/2017

    I’ve been traveling like a madman on behalf of CBOE in June.  I try my best to keep up with the markets when I’m out and about, but sometimes the catch up occurs outside of real time.  This weekend is one of those catch up weekends.  I was aware of the VIX move over 15.00 (who wasn’t?) and that VIX was a bit higher than it had been for most of 2017 to finish the week.  What surprised me was the level of VXST on Friday. VXST is a measure of 9-day volatility expectations[...]

  • VIX | Trader Talk | Trade Ideas | Jul 2, 2017, 11:57 AM

    Weekend Review of VIX Futures and Options - 6/26/2017 - 6/30/2017

    Weekend Review of VIX Futures and Options - 6/26/2017 - 6/30/2017

    VIX had quite a midweek move rising above 15.00 for a very short period of time before settling at 11.18 to end the week.  Note the VIX action didn’t have much of an impact on the futures contracts which can be attributed to the steep nature of the curve going into last week.  I spoke about the following trade on the Vol Views podcast this past Friday.  However, it was such a great use of VIX Weeklys that I wanted to repeat the trade here.  On Monday last week, with VIX[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jul 2, 2017, 11:14 AM

    Weekend Review of Russell 2000 Options and Volatility - 6/26/2017 - 6/30/2017

    Weekend Review of Russell 2000 Options and Volatility - 6/26/2017 - 6/30/2017

    Small caps in the form of the Russell 2000 (RUT) were up slightly last week while the Russell 1000 (RUI) was down slightly.  Friday marked the end of the second quarter.  Both RUT and RUI were higher for the second quarter with RUT gaining 2.12% while the large cap focused RUI was 2.55% higher.  We all know RUT had stellar performance from election day to the end of 2016 on both and absolute and relative basis when compared to RUI.  However, RUT has consistently underperformed[...]

  • Jun 30, 2017, 1:54 PM

    PUT Index and PUTW ETF Win Sharpe Indexing Award

    PUT Index and PUTW ETF Win Sharpe Indexing Award

    PUT Index and PUTW ETF Win Sharpe Indexing Award By Matt Moran On June 26 the CBOE S&P 500 PutWrite Index (PUT) and the WisdomTree CBOE S&P 500 PutWrite Strategy Fund ETF (PUTW) won the 2017 Index/ETF Product of the Year award at an annual ceremony that was presented by IMN and the Journal of Index Investing. The awards ceremony was held during the 22nd Annual Global Indexing and ETFs conference, a 3-day event with about 750 financial professionals (including reps of CBOE, Bats, and ETF.com)[...]