• 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[...]

  • Strategy | Cboe Benchmark Indexes | Oct 3, 2016, 2:43 PM

    News Story by Pensions & Investments Highlights Put-write Strategy, PUT Index and New Wilshire Paper

    News Story by Pensions & Investments Highlights Put-write Strategy, PUT Index and New Wilshire Paper

    An October 3 news story - “Funds go exotic with put-write options to stem volatility” - in Pensions & Investments noted that put-write options strategies “are finding their way into more pension fund allocations to protect against volatility and, in some cases, take the place of fixed income as an income provider.”  The news story noted that a new paper by Wilshire -- Three Decades of Options-Based Benchmark Indices with Premium Selling or Buying: A Performance Analysis[...]

  • Market News | Trader Talk | Trade Ideas | Oct 3, 2016, 11:25 AM

    Earnings Week of 10/3 - 10/7

    Earnings Week of 10/3 - 10/7

    It's the quiet before the storm this week and third quarter earnings start hitting next week.  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.

  • VIX | Oct 3, 2016, 9:59 AM

    How Would a Cubs World Series Victory Impact VIX?

    How Would a Cubs World Series Victory Impact VIX?

    The baseball regular season came to an end yesterday and the Chicago Cubs are positioned to make a historic run that most expect will end in a World Series victory.  See what happens when a trader takes control of a team.... Since many people thought this would never happen, it may also be thought of as a black swan event and we all know that black swans have a dramatic impact on market volatility and show up in an elevated level for the Chicago Board Options Exchange Volatility Index, commonly[...]

  • BigTrends.com Weekly Market Outlook - Mildly Bullish Undertow

    BigTrends.com Weekly Market Outlook - Mildly Bullish Undertow

    Stocks managed to log a gain last week, but it was a "just barely" situation. The S&P 500 (SPX) (SPY) ended only 0.1% higher than it ended the prior week, and still closed below all of its key technical resistance levels. The bulls are going to have to do better than this to achieve escape velocity. Still, the undertow remains technically bullish, and a break above the ceilings here is within easy reach. We'll look at the hurdles and weigh the odds after a quick run-down of last[...]

  • Market News | Oct 3, 2016, 8:58 AM

    M&A Is a Sign of Economic Health

    M&A Is a Sign of Economic Health

    Last year was a record year for M&A, but going unnoticed in 2016 is the plethora of mergers that have taken place across many sectors.  Whether it is airlines, media, semiconductors or chemicals - this year has been one of the biggest on record in size and scope.  Yet, one wonders why so many mergers are happening with the stock market at/near all time highs just about the entire year?  The worst of course occurred during the first six weeks of the year and it has been up ever[...]

  • Market News | Oct 2, 2016, 4:00 PM

    The Weekly Options News Roundup – 10/2/2016

    The Weekly Options News Roundup – 10/2/2016

    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. CBOE RMC Europe’s High 5 CBOE held its 5th annual Risk Management Conference (RMC) Europe in County Wicklow, Ireland earlier this week.  “The Volatility Summit,” as RMC is sometimes affectionately called, was attended by nearly  200 financial professionals.  Sessions covered new CBOE[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Oct 2, 2016, 8:39 AM

    Weekend Review - VIX Options and Futures - 9/26 - 9/30

    Weekend Review - VIX Options and Futures - 9/26 - 9/30

    The VIX curve did The Twist (cue Chuck Berry) as spot VIX rose 8% and the front month October contract was up by just over 1%.  Beyond the front month all things were red. The highest closing level for VIX last week came on Monday with the spot index finishing the day at 14.50.  One trader had an expectation that this move up would very short lived and decided to sell a call spread with VIX Weeklys Options that expired on the open this past Wednesday.  Just a few minutes[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Oct 1, 2016, 12:53 PM

    Weekend Review - Russell 2000 Options and Volatility - 9/26 - 9/30

    Weekend Review - Russell 2000 Options and Volatility - 9/26 - 9/30

    For the first time in a while the Russell 1000 was higher while the Russell 2000 lost value last week.  The numbers were slight with RUI up 0.15% and RUT down 0.26%.  For the year RUT still maintains a nice lead with three months to go in 2016. The CBOE Russell 2000 Volatility Index maintains a high spread relative to VIX continuing to hover around that 40% level.   On Monday the Russell 2000 came under a little pressure and one trader decided to take advantage of this[...]

  • Market News | Oct 1, 2016, 11:21 AM

    Weekend Review - Volatility Indexes and ETPs - 9/26 - 9/30

    Weekend Review - Volatility Indexes and ETPs - 9/26 - 9/30

    The VXST – VIX – VXV – VXMT Curve is a consistent way to look at different S&P 500 Option Implied Volatility time frames.  All four indexes moved up a bit last week, with the curve shape maintaining a pretty steep shape. The ETPs were a mixed bag last week.  VXX and the other long funds that focus on the short end of the curve were higher last week.  VXZ, which focuses on the longer end of the curve was lower, being a victim of the steep contango[...]

  • Market News | Education | Strategy | Election & VIX | Sep 30, 2016, 2:28 PM

    More SPXW and VIX “Election Spread” Expiration Dates for Targeted Strategies

    More SPXW and VIX “Election Spread” Expiration Dates for Targeted Strategies

    As the November 8 date for the U.S. Presidential election approaches, I have heard quite a bit of interest from investors in the use of SPX and VIX options and VIX futures with various expirations over the next six weeks.  Added expiration dates provide investors with the opportunity to implement more targeted buying, selling, hedging and spreading strategies. As shown in the two tables below, a September 28 CBOE Circular, and on cboe.com, by the end of next week there will be SPXW option expirations[...]

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