• Market News | Oct 16, 2016, 4:40 PM

    The Weekly Options News Roundup – 10/16/2016

    The Weekly Options News Roundup – 10/16/2016

    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. VIX FIX: Volatility’s October Surprise Earnings season is once again upon us, and has caused a bit of turbulence throughout markets.  The Dow Jones Index underwent a series of triple-digit moves this week, briefly dipping below 18,000 on Thursday before rebounding on Friday.  Another catalyst for[...]

  • Market News | Oct 16, 2016, 2:29 PM

    Weekend Review - VIX Futures and Options - 10/10 - 10/14

    Weekend Review - VIX Futures and Options - 10/10 - 10/14

    The tug of war was on and it appears the VIX futures won last week as VIX rose about 20% and the October contract gained only 8%.  When we are in steep contango eventually VIX either rises or the futures give in, this time VIX blinked.  Remember next week October drops off the board and November becomes the front month.  If you are playing the election volatility game we do have Weeklys that expire closer to the vote, but the standard November contract will be the one that gets most[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Oct 16, 2016, 10:43 AM

    Weekend Review - Volatility Indexes and ETPs - 10/10 - 10/14

    Weekend Review - Volatility Indexes and ETPs - 10/10 - 10/14

    On a percentage basis VIX was the big winner among the four S&P 500 related volatility indexes.  VIX gained just over 19% while VXST was up about 13%.  The longer end of the curve is often less responsive to drops in the stock market.  VXV and VXMT behaved as they normally do and rose about 6% and 4% respectively. The long ETPs had a nice week with the unleveraged funds gaining over 5% and the leveraged funds putting up gains of over 10%.  As I like to say, the[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Oct 15, 2016, 9:37 AM

    Weekend Review - Russell 2000 Options and Volatility - 10/10 - 10/14

    Weekend Review - Russell 2000 Options and Volatility - 10/10 - 10/14

    The finish line for 2016 performance is starting to appear in the distance. It was starting to look like small cap stocks would rule the year, but in the past couple of weeks, large cap stocks have started to play a little catch up. Last week the Russell 2000 (RUT) dropped just over 2% while the Russell 1000 (RUI) was down just over 1%. The spread is narrowing with RUT maintaining about a 2.4% lead going into the final stretch that is 2016. When volatility moves up in the form of a higher[...]

  • Market News | Oct 14, 2016, 11:23 AM

    Earnings Week of Oct 17 - Oct 21

    Earnings Week of Oct 17 - Oct 21

    With a couple of exceptions (AAL, PYPL) the data below represents twelve quarters of earnings history.  As always the data below is based on the last three years of earnings results unless the ticker is in italics.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.  Finally, double check the earnings dates as not all were confirmed.

  • Market News | Oct 10, 2016, 7:54 AM

    Earnings Week of 10/10 - 10/14

    Earnings Week of 10/10 - 10/14

    Earnings season kicks off this week with AA reporting tomorrow Tuesday before the market opens.  As always the data below is based on the last three years of earnings results unless the ticker is in italics.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.

  • Market News | Oct 9, 2016, 4:00 PM

    The Weekly Options News Roundup – 10/9/2016

    The Weekly Options News Roundup – 10/9/2016

    CBOE RMC Europe Recap CBOE wrapped up its 5th annual Risk Management Conference (RMC) last week in County Wicklow, Ireland.  During the conference, CBOE’s Senior Vice President, Business Development, Andy Lowenthal, and Vice President of Research, Bill Speth sat down to discuss product development, extended-trading hours, and options education with EQ Derivatives.  For more information on RMC, including blogs recapping presentations, visit http://www.cboermc.com/. “Q&A:[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Oct 9, 2016, 8:00 AM

    Weekend Review - Volatility Indexes and ETPs - 10/3 - 10/7

    Weekend Review - Volatility Indexes and ETPs - 10/3 - 10/7

    The VXST – VIX – VXV – VXMT changed a little last week with the wings (VXST & VXMT) losing a little value and the middle section (VIX & VXV) rising slightly.  I find the drop on Friday in VXST a little perplexing as I was hearing concern with respect to a potential market reaction to the Sunday night debate.  People may have been thinking it, but VXST was not reflecting short term concerns. VIX was higher last week, but all the standard futures contracts[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Oct 8, 2016, 2:31 PM

    Weekend Review VIX Futures and Options - 10/3 - 10/7

    Weekend Review VIX Futures and Options - 10/3 - 10/7

    The only thing that rose last week on the VIX curve below was spot VIX.  The steep contango managed to influence the futures pricing versus spot and even with a small gain in VIX, all standard futures lost value last week.   Despite the divergence in performance between VIX and the futures, we are still in pretty steep contango as the market seems to be braced for some sort of fourth quarter surprise. One trade popped up on Friday that appears to be looking for a spike[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Oct 7, 2016, 6:48 PM

    Weekend Review - Russell 2000 Options and Volatility

    Weekend Review - Russell 2000 Options and Volatility

    Large cap stocks held up relative to small caps with the Russell 2000 (RUT) losing 1.30 last week while the Russell 1000 (RUI) was down only 0.77%.  RUT still holds the 2016 lead by a fairly wide margin up 8.86Z% versus up 5.43% for RUI. Low VIX usually results in a higher RVX / VIX spread.  That contributed to the spread reaching 2016 highs this week, but I have to believe that the RUT underperformance has a part in it as well. I went searching for a RUT option trade from[...]

  • Market News | Election & VIX | Oct 7, 2016, 1:04 PM

    Will VIX Futures Prices Move During the Sunday Night Debate?

    Will VIX Futures Prices Move During the Sunday Night Debate?

    On the night of September 26 a debate-record 84 million people tuned in to watch the first of three U.S. Presidential debates. During the debate there were movements in the prices of futures on the CBOE Volatility Index® (VIX®), S&P 500® futures, and the Mexican peso (see below for a chart and more information). If you would like to follow the movements of VIX futures during the upcoming Presidential debate from 8:00 to 9:30 p.m. CT this Sunday, October 9, here are three resources[...]

  • Market News | Oct 6, 2016, 12:14 PM

    Timely Twitter Trade From Yesterday

    Timely Twitter Trade From Yesterday

    My youth was spent watching way too many Warner Brothers cartoons.  If you are like me then you know Sylvester the cat always struggled but never caught Tweety Bird.  A few firms were playing the role of Sylvester this past week and hoping to catch Twitter.  Apparently all the Sylvesters have gone away and no one is willing to catch Twitter, at least not in the mid-20’s. When we have a big move in a stock that is somewhat unexpected I go to my Live Vol account and see if there[...]

  • Trader Talk | Education | Oct 5, 2016, 7:02 AM

    59 Years Ago the Russians Won the Space Race - Why Being First is Not Being Best

    59 Years Ago the Russians Won the Space Race - Why Being First is Not Being Best

    Fifty-nine years ago today everyone in the United States was a bit freaked out.  It had nothing to do with the stock market or economy.  It was due to something unseen that was floating over our heads.  The Russians had launched Sputnik, the first artificial satellite to orbit earth.  The Russians had beaten the United States to being the first in space.  The reaction in the US was a combination of fear (does this mean we are behind the Russians militarily as well?) to let’s[...]

  • VIX | Oct 4, 2016, 9:58 AM

    CBOE and RCM Alternatives Event on VIX Futures Trading

    CBOE and RCM Alternatives Event on VIX Futures Trading

    The CBOE Options Institute is teaming up with RCM Alternatives on October 13th from 4:30 to 8:00 for a discussion and expert panel on VIX Futures and Options trading.  The even will be held at CBOE with a reception following in the Member's Lounge that overlooks the trading floor. The event will cover the current landscape and forecast for the VIX, misconceptions and facts about the structure of VIX futures, and the evolution of how this “fear gauge” has evolved as a trading instrument. After[...]

  • Keeping a technical eye on LULU

    Keeping a technical eye on LULU

    I have a setup I'm stalking in LULU via a weekly chart.  Now I say that I'm stalking this one because I do NOT see any official buy triggers yet that tells me it's worth placing a bet on this stock.  I am however anticipating a possible buy trigger if LULU tests one of the two key support zones I'm looking at on this weekly chart.  The first zone comes in at the 57.91-59.02 area.  The second zone comes in at 52.92-54.95.  These price cluster decisions include some 100% projections[...]