• Education | Aug 7, 2017, 8:47 AM

    Take The Markets Seriously, Even When Others Won't

    Take The Markets Seriously, Even When Others Won't

    There is a buzz around markets these days, many are in complete disbelief or denial that the bull market continues to rage on.  The length of this run is now about nine years, and we have barely had any correction.  That is not to say we won't have one coming, and certainly with the bias toward short volatility (skew, tail risk), short SPX puts, and other more esoteric products - there will likely be an unwind that will feel monumental.  There may be no getting around it, and it[...]

  • Aug 6, 2017, 3:30 PM

    The Weekly Options News Roundup – 8/6/2017

    The Weekly Options News Roundup – 8/6/2017

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX Index and volatility-related articles from print, broadcast, online and social media outlets.      The Futures of Bitcoins On Wednesday, CBOE announced that it has entered into an exclusive license agreement with Gemini Trust Company to use Gemini’s bitcoin market data for bitcoin derivatives and indices.  Under the terms of the agreement, CBOE will have a multi-year exclusive global[...]

  • Aug 2, 2017, 3:30 PM

    Bearish on TSLA in Front of Earnings

    Bearish on TSLA in Front of Earnings

    Other trades of note: Teva Pharmaceutical Industries Limited (TEVA) at 31.10, a Bull Put Spread traded 520 times. The trader sold the Aug 4th 34/32 spread for a credit of 1.57. TEVA is expected to report earnings on Thursday, August 3, before the market open. Otonomy, Inc. (OTIC) at 18.35, a Calendar Spread traded 1,700 times. The trader sold the Oct 20th 20 Calls and bought the Sept 15th 20 Calls collecting 2.00. OTIC is expected to report earnings on Thursday, August 3, after the market[...]

  • Aug 1, 2017, 3:50 PM

    AAPL Calls Purchased in Front of Earnings

    AAPL Calls Purchased in Front of Earnings

    Other trades of note by Lauren Ravalli: NXP Semiconductors N.V. (NXPI) at 110.70, a Calendar Spread traded 2,500 times. The trader sold the Oct 20th 115 Calls and bought the Jan 19th 115 Calls paying 2.20. Intel Corporation (INTC) at 35.97, a Bear Call Spread traded 1,000 times. The trader sold the Aug 4th 35/36.50 spread for a .95 credit. Citigroup Inc. (C) at 69.19, a Bull Call Spread traded 500 times. The trader bought the March 16th 77.50/85 spread paying 1.00. DISH Network (DISH)[...]

  • VIX | Morning Call | Aug 1, 2017, 7:39 AM

    CBOE Morning Call 8/1/2017

    CBOE Morning Call 8/1/2017

    Big Picture About 3/4‘s of the companies in the S&P 500 that have already reported second quarter earnings beat their estimates.  This sounds impressive, but according the Bank of America Merrill Lynch the stock price reactions have been muted (despite the S&P 500 pushing the 2500 level).  Yesterday the Chicago PMI was lower than expectations, but Pending Home Sales was higher than expectations.  Nothing can go wrong if housing sales are strong, right?  We get[...]

  • Earnings | Jul 31, 2017, 3:22 PM

    Under Armour Call Skewed Into Earnings

    Under Armour Call Skewed Into Earnings

    Other trades of note: ViewRay, Inc. (VRAY) at 4.61, a 1x2 Ratio Spread traded. The trader bought 900 Sept 15th 5 Calls for .50 and sold 1,800 Sept 15th 7.50 Calls at .05. They paid .40 for the package. iShares Russell 2000 ETF (IWM) at 141.38, a Bear Put Spread traded 15,000 times. The trader bought the Aug 4th 141/138 spread paying .53. Exxon Mobil Corporation (XOM) at 79.87, a Bull Call Spread traded 1,000 times. The trader bought the Aug 4th 80/80.50 spread paying .22. XOM reported earnings[...]

  • Morning Call | Jul 31, 2017, 7:18 AM

    CBOE Morning Call 7/31/2017

    CBOE Morning Call 7/31/2017

    Big Picture There are over a hundred stocks with Weeklys reporting this week in what is probably the heaviest portion of the earnings calendar.  All eyes will be on AAPL’s report tomorrow after the close which as well as financials will probably give us some insight into product launches coming in the next few months.  The economic calendar is heavier this week than last week with Personal Income and ISM tomorrow, the ADP employment number Wednesday, Factory Orders and Services[...]

  • Jul 30, 2017, 9:09 AM

    The Weekly Options News Roundup – 7/30/2017

    The Weekly Options News Roundup – 7/30/2017

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX Index and volatility-related articles from print, broadcast, online and social media outlets.      Mini’s Large Move Volume in CBOE’s Mini-SPX (XSP) options has risen about 140% since February, with average daily volume growing from 7,765 contracts in February to 21,981 in July (through July 26).  To read more on the growth of mini S&P 500 contracts, see this recent blog[...]

  • Market News | Trader Talk | Trade Ideas | Jul 29, 2017, 11:36 AM

    Weekend Review of Russell 2000 Options and Volatility 7/24/2017 - 7/28/2017

    Weekend Review of Russell 2000 Options and Volatility 7/24/2017 - 7/28/2017

    Large cap stocks held up better than small caps last week and the Russell 1000 (RUI) is now outperforming the Russell 2000 (RUT) by just about 1.00% for the third quarter.  I had high hopes for small cap stocks in the second half of 2017, but those hopes are starting to fade.   The CBOE Russell 2000 (RVX) premium to VIX topped 50% for the first time since early June.  My excuse for the higher RVX to VIX relationship has been blamed on VIX, but with VIX rising a bit next week I have[...]

  • VIX | Trader Talk | Trade Ideas | Jul 29, 2017, 11:32 AM

    Weekend Review of Volatility Indexes and ETPs 7/24/2017 to 7/28/2017

    Weekend Review of Volatility Indexes and ETPs 7/24/2017 to 7/28/2017

    On a week over week basis the S&P 500 was down fractionally.  One would not assume such a small move from SPX when looking at the VXST – VIX – VXV – VXMT curve below.  VXST and VIX made nice moves to the upside while the longer end of the curve moved up a bit less resulting in a slight flattening of the curve.  The long funds that focus on the first and second month futures were up slightly while the short funds were down slightly.  SKEW and VVIX both[...]

  • VIX | Trader Talk | Trade Ideas | Jul 29, 2017, 9:11 AM

    Weekend Review of VIX Futures and Options 7/24/2017 - 7/28/2017

    Weekend Review of VIX Futures and Options 7/24/2017 - 7/28/2017

    This past week is one of those weeks where those new to VIX futures get a lesson in price behavior and the lack of fair value that exists between the futures and the spot index.  VIX rose almost 10% on the week, the August contract was unchanged and the rest of the curve actually moved lower.  The curve had been steep and the result was futures not budging too much when VIX got moving to the upside.  As we enter the last five months of the year I would like to highlight where we[...]

  • Morning Call | Jul 28, 2017, 8:12 AM

    CBOE Morning Call 7/28/17

    CBOE Morning Call 7/28/17

    Big Picture Earnings continue to be skewed to the positive side as far as stock price reactions go, although the stock market seems to taking a breather.  JP Morgan followed Goldman Sachs’ lead and said some nasty things about tech stocks which hit the Nasdaq particularly hard yesterday and took other sectors down with it.  VXN (think Nasdaq VIX) was up much more than the other broad-based equity volatility indexes.  Needless to say, traders will probably focus on large tech[...]

  • Jul 27, 2017, 3:28 PM

    Amazon Earnings Delivered Tonight

    Amazon Earnings Delivered Tonight

    Other trades of note: Twitter, Inc. (TWTR) at 17.08, a Bull Put Spread traded 1,000 times. The trader sold the Jul 28th 18/17 spread for a credit of .72. TWTR reported earnings this morning. SPDR S&P Retail ETF (XRT) at 41.25, a Bear Put Spread traded 590 times. The trader bought the Aug 25th 40.50/38.50 spread paying .37. iPath S&P 500 VIX Futures ETN (VXX) at 11.02, a Bull Call Spread traded 2,000 times. The trader bought the Aug 18th 13/15 spread paying .12. Tenet Healthcare Corporation[...]

  • Earnings | Jul 27, 2017, 12:20 PM

    Earnings Week of July 31 to August 4

    Earnings Week of July 31 to August 4

    The biggest week for 2Q earnings is upon us.  As always the numbers below represent the last 12 quarters of one day stock price reaction to earnings. 

  • Morning Call | Jul 27, 2017, 6:28 AM

    CBOE Morning Call 7/27/2017

    CBOE Morning Call 7/27/2017

    Big Picture The FOMC didn’t offer up any surprises yesterday afternoon and the stock market reacted with a giant yawn.  VIX finally put in a new all-time intraday low hitting 8.84 as the FOMC announcement was just about to hit the tape.  Before the day was done VIX had worked its way up to 9.60.  The odds of a rate hike in December still remains at about 50%, but I’m taking the no hike side of that bet.  It will take very little in the form of negative news for the[...]

Special Offers
*Third Party Advertisements

Advertisement Advertisement