• May 7, 2017, 4:30 PM

    The Weekly Options News Roundup – 5/7/2017

    The Weekly Options News Roundup – 5/7/2017

    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.      CBOE Bats New York Office Squares Off On Thursday, CBOE-Bats’ New York office participated in the Bloomberg Square Mile Relay, where runners took a unique one-mile path around the city’s Financial District.  One of CBOE’s two teams finished in 9th place out of a total of[...]

  • VIX | Trader Talk | Trade Ideas | May 6, 2017, 9:57 AM

    Weekend Review of VIX Futures and Options - 5/1/2017 - 5/5/2017

    Weekend Review of VIX Futures and Options - 5/1/2017 - 5/5/2017

    VIX managed to (briefly) put in a post Great Financial Crisis low hitting 9.90 on Monday and sneaking in a 9.99 low on Friday as well.  Full disclosure, I didn’t even see the 9.99 print on Friday, but then again, we are getting conditioned against getting too excited when VIX dips below 10.  Worth noting below is the bigger drop in the May future when compared to spot VIX.  Typically, we see this closer to expiration, but when there’s very little on the horizon that the[...]

  • Earnings | May 5, 2017, 1:55 PM

    Earnings Week of 5/8/2017 - 5/12/2017

    Earnings Week of 5/8/2017 - 5/12/2017

    Things are starting to taper a bit, but not too much as there are several companies with Weeklys reporting next week.  The stocks below have Weeklys available for trading and the numbers represent the last 12 quarters of one day price reactions to their announcement.  As always double check the dates as none have been confirmed.

  • May 4, 2017, 3:29 PM

    What's Trading: AIG Straddles and Strangles into Earnings

    What's Trading: AIG Straddles and Strangles into Earnings

    AIG options were active into expiration. There's been speculation about their search for a new CEO as well as potential stock buyback plans. AIG beat on the top and bottom line during an earnings cycle that has generally been quite strong. They also announced a $2.5 billion repurchase plan. We take a look at the Weekly ATM straddle as well as a June OTM strangle going into and coming out of the "event". Full Video below:

  • May 3, 2017, 3:47 PM

    What's Trading: Allstate (ALL) Call Spread into Earnings

    What's Trading: Allstate (ALL) Call Spread into Earnings

    Long high volatility premium? Learn how verticals reduce exposure to high or low volatility options. ALL trader succeeds in managing high volatility option purchase by offsetting position with selling high volatility out-of-the-money option.   $ALL #Allstate

  • Earnings | May 2, 2017, 5:09 PM

    Earnings Week of 5/1/2017 - 5/4/2017

    Earnings Week of 5/1/2017 - 5/4/2017

    We hit the busiest part of earnings season this week.  The stocks below have Weeklys available for trading and the numbers represent the last 12 quarters of one day price reactions to their announcement.  As always double check the dates as none have been confirmed.

  • May 2, 2017, 2:37 PM

    What's Trading: Dell Technologies (DVMT)

    What's Trading: Dell Technologies (DVMT)

    LiveVol Pro Scanner allows me to find big trades just like this one in DVMT. DVMT has had a nice run since late last year and we got a trader who thinks this uphill climb is going to hit a slippery slope sometime this year. Implied volatility is signaling about a $10 move up or down between now and December expiration and the forecast is choosing down. Time decay is next to nothing right now but he is long .07 vega so an increase in implied volatility would be favorable. There is a significant[...]

  • May 1, 2017, 10:06 AM

    Aiding Millennials to Achieve Financial Security and Independence

    Aiding Millennials to Achieve Financial Security and Independence

    As the dad of two upstanding children of the millennials generation, I'm excited about their future as the embark on their journey to conquer the world.  My kids turn 18 and 20 in May, and there is nobody more proud of their accomplishments than me.  My daughter is about the graduate high school with a strong GPA, works part time, has interests in politics and diplomacy along with an enormous talent in the arts (theater, song and dance).  She is off to college this fall. My son is[...]

  • Apr 30, 2017, 3:30 PM

    The Weekly Options News Roundup – 4/30/2017

    The Weekly Options News Roundup – 4/30/2017

    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.      CBOE Turns 44 On April 26, 1973, CBOE created the listed options industry.  911 contracts on 16 stocks changed hands on that fateful first day 44 years ago this week.   Now, with four different options markets, CBOE’s options platforms trade an average of nearly seven million contracts[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Apr 30, 2017, 9:10 AM

    Weekend Review of Volatility Indexes and ETPs - 4/24/2017 - 4/28/2017

    Weekend Review of Volatility Indexes and ETPs - 4/24/2017 - 4/28/2017

    S&P 500 implied volatility was dramatically lower last week.  Of significance is VXV which hit 2017 lows.  I’m teamed up with an academic putting the final touches on a study showing that VXV leads VIX so this may be a signal that the low for VIX in 2017 hasn’t be established and a close below 10.00 is a distinct possibility.  Beyond the long ETPs on the table, which had a pretty tough week, are some other markets worth noting.  First, TYVIX, which was over[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Apr 29, 2017, 1:43 PM

    Weekend Review of Russell 2000 Options and Volatility - 4/24/2017 - 4/28/2017

    Weekend Review of Russell 2000 Options and Volatility - 4/24/2017 - 4/28/2017

    This past week was basically a tie between small and large cap stocks as the Russell 2000 (RUT) and Russell 1000 (RUI) were both up about 1.5%.  Four months into 2017 and RUI continues to maintain a lead of about 3.3% over RUT.  Last week VIX got smashed as did the CBOE Russell 2000 Volatility Index (RVX).  A return to the low end of the range resulted in the VIX / RVX relationship returning to higher levels.   With Weeklys available for trading all kinds of alternatives that[...]

  • VIX | Trader Talk | Trade Ideas | Apr 29, 2017, 9:27 AM

    Outcome: Net Fun

    Outcome:  Net Fun

    Shorting UVXY is sort of like making pancakes and flipping them in the air and catching them with the pan.  You can entertain yourself and others like that for a while, and you just may accumulate a large stack of perfectly browned piping-hot pancakes, but sooner or later some raw batter is going to hit the kitchen floor, and that is not much fun.  And what if everyone eats up all your pancakes in the meantime, and you're stuck with nothing but a kitchen-floor disaster? Well, on Thursday,[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Apr 29, 2017, 9:00 AM

    Weekend Review of VIX Futures and Options - 4/24/2017 - 4/28/2017

    Weekend Review of VIX Futures and Options - 4/24/2017 - 4/28/2017

    Everyone knows what an ear worm is and if not you will now.  It is basically when a song is stuck in your head.  Since Monday REM’s Orange Crush has been on constant replay in my head.  VIX losing 26% and the front month down 14% definitely qualify as a volatility crush.  Since all this crushing was caused by events in Europe (France specifically) we will take a look at the week over week VSTOXX and associated futures term structure change.  Now I have Officer Barbrady[...]

  • Apr 27, 2017, 2:08 PM

    Spring’s Blooming Int’l Equity Markets (2017)

    Spring’s Blooming Int’l Equity Markets (2017)

    Spring has arrived and our home town Chicago baseball teams (Cubs & White Sox) lead their respective Central Divisions.  Likewise the Chinese and Emerging equity markets have also taken an early lead in the global economic recovery this year. On April 18, 2017 IMF delivered their World Economic Outlook, a report which raised the global economic outlook in 2017 to 3.5% and 3.6% in 2018 citing “Stronger activity and expectations of more robust global demand…”  Their[...]

  • Apr 26, 2017, 10:37 AM

    CBOE's 44th Anniversary

    CBOE's 44th Anniversary

    CBOE turns 44 today, and we thought we'd provide 44 "fun facts" to mark the occasion.   The first day of trading for CBOE was April 26, 1973. 911 option contracts traded on the first day in 1973. There were only 16 stocks with options on the first day. Seats at CBOE were originally offered at $10,000. Initially put options were not permitted for trading. In 1973, the Black Scholes model was published in the Journal of Political Economy. In 1977 CBOE was permitted[...]