• Mar 5, 2019, 1:50 PM

    Inside Volatility Trading: March 5, 2019

    Inside Volatility Trading: March 5, 2019

    Flattening of VIX Futures Term Structure The Cboe Volatility Index® (“VIX”) futures term structure flattened at the end of February due to some sizeable spread trades. These trades appear to be positioned to benefit from a shift in the term structure curve from contango (upward sloping) to backwardation (downward sloping), which tends to happen when there is a volatility spike. VOLATILITY NEWS Schaeffer's Investment Research: Rare VIX Signal Points to Spring Volatility Spike [...]

  • Mar 5, 2019, 9:00 AM

    Her Story: Bea Ringold

    Her Story: Bea Ringold

    From the trading floor to corporate, Bea’s seen it all in her 38 years at Cboe Bea Ringold got her start at Cboe as a price reporter in 1981, much to the surprise of friends and family. “People would see traders and trading floors on the news and say, ‘You work there?! You actually do that?!’ It was a big thing back in the day. The floor was so crowded we hardly had elbow room,” Bea says. Packed in with the floor’s many characters, Bea soon rose through the ranks,[...]

  • Feb 8, 2019, 12:03 PM

    Key Highlights for 11 Select Sectors

    Key Highlights for 11 Select Sectors

    Over the next week, Cboe will roll out options on 11 Select Sector indices. Cboe’s Select Sector Index options are designed to provide investors with an easy way to add specific U.S. industry sector exposure to their portfolios and are expected to have particular utility for investors seeking an alternative to options on ETFs.  The Select Sectors use the GICS® (Global Industry Classification Standard) to categorize each company within the S&P 500 Index into one of 11 sectors.[...]

  • Feb 7, 2019, 11:19 AM

    What You Need to Know About Cboe’s New Options on Select Sectors

    What You Need to Know About Cboe’s New Options on Select Sectors

    Today, Cboe Global Markets announced the rollout schedule of new large-sized, cash-settled options on 11 Select Sector Indexes from February 7 through 14. The first options on the Materials Select Sector Index launched today. There are several key features of the options that users may find appealing, including: Efficient Exposure to U.S. Industry Sectors: With special appeal for investors seeking an alternative to ETF options, including European customers constrained by certain European regulations [...]

  • Jan 17, 2019, 4:32 PM

    Key Cboe Benchmark Indexes Using SPX Options Offer Strong Risk-Adjusted Returns

    Key Cboe Benchmark Indexes Using SPX Options Offer Strong Risk-Adjusted Returns

    Following a decline in the S&P 500® Index of 6.9% in October and a drop of 9.2% in December, more investors appear to be exploring income-producing strategies that have the potential for relatively strong risk-adjusted returns amid increased market volatility. To help investors with that process, Cboe offers 10 benchmark indexes designed to measure the hypothetical returns of strategies that use S&P 500 (SPX(SM)) options, with daily data histories beginning in mid-1986. HIGHER OPTIONS[...]

  • Jan 9, 2019, 5:04 PM

    Record-breaking Month and Year for Cboe’s Stock Index Options

    Record-breaking Month and Year for Cboe’s Stock Index Options

    Since 1983, Cboe has offered stock index options. In 2018, several new all-time records for volume and open interest were reported as investors faced heightened volatility. Index options have the potential to generate more income for options sellers who receive options premiums, help manage exposure and protect a portfolio from damaging huge drawdowns. RECORD VOLUME AND OPEN INTEREST FOR CBOE’S S&P 500 OPTIONS In 2018, the average daily volume (ADV) for S&P 500® options (SPXTM and[...]

  • Dec 28, 2018, 3:43 PM

    A “January Effect” RUT Weekly (RUTW) Option Overlay Strategy

    A “January Effect” RUT Weekly (RUTW) Option Overlay Strategy

    Stock market gyrations this December have been attributed to the dominance of systematic trading driven by algorithms. While electronic trading may cause dramatic price swings in the market, there’s a meaningful behavioral element as well. Investors and traders are faced with sudden potential losses in their equity positions and a need to assess risk tolerances going into 2019. The “January effect”? The “January effect” hypothesizes a price increase in securities during[...]

  • Dec 26, 2018, 2:25 PM

    Cboe’s All-Options Put/Call Ratio Hits 1.82, Its Highest Level in More Than 23 Years

    Cboe’s All-Options Put/Call Ratio Hits 1.82, Its Highest Level in More Than 23 Years

    On December 20, Cboe’s daily Put-Call Ratio for its entire options volume rose to 1.82, reaching its highest level in more than 23 years. Analysts and investors often follow and cite put/call ratios in conjunction with attempts to gain insights on possible changes in investors’ bullish or bearish sentiments. Recent news stories in Barron’s and in Bloomberg have highlighted comments on the possible impact of high put/call ratios. DATES WITH HIGH AND LOW PUT/CALL RATIOS The table[...]

  • Dec 19, 2018, 7:27 PM

    A Vertical Spread for Rough Sledding

    A Vertical Spread for Rough Sledding

    This week’s sell-off in the U.S. stock market contributed to making this December’s price performance one of the worse in many years.  The Russell 2000 Index (RUT), the benchmark for the U.S. small-cap performance, outperformed other U.S. equity indexes on the way up in early 2018 and has underperformed during the tail end of the year. The RUT is down more than 10 percent in the month of December. Several factors contributed to the index decline, including rising U.S. interest rates[...]

  • Dec 19, 2018, 7:15 PM

    New Record Open Interest for Cboe S&P 500 Options Surpasses 20 Million Contracts

    New Record Open Interest for Cboe S&P 500 Options Surpasses 20 Million Contracts

    While many investors are concerned that benchmark indexes for major investment classes are down year-to date, it appears more investors are using S&P 500 options to manage risk and enhance income On December 18, open interest for Cboe’s S&P 500 (SPX and SPXW) options surpassed 20 million for the first time in its history of more than 35 years and hit a new all-time record high of 20,101,598 contracts. The Cboe S&P 500 95-10 Collar Index (CLLSM), an index that tracks the[...]

  • Dec 7, 2018, 1:31 PM

    Fourth Annual Cboe Risk Management Conference - RMC Asia - Features Expert Presentations and Great Networking

    Fourth Annual Cboe Risk Management Conference - RMC Asia -  Features Expert Presentations and Great Networking

    More than 140 financial professionals, including top traders, strategists and researchers attended the fourth Annual Cboe Risk Management Conference (RMC) Asia on December 3 and 4 in Hong Kong.  Topics related to the management of risk and return in investment portfolios were discussed by 12 speakers at RMC Asia, including Tim Edwards, Tim Weithers and Cboe Chairman and CEO Ed Tilly. Day One: Options/Volatility Fundamentals: Synthetic Option Strategies, Volatility Trading, and Futures and[...]

  • Nov 9, 2018, 2:41 PM

    Inaugural Cboe Risk Management Conference (RMC) Tel Aviv Features Packed Program, Strong Attendance

    Inaugural Cboe Risk Management Conference (RMC) Tel Aviv Features Packed Program, Strong Attendance

    More than 150 financial professionals, including top traders, strategists and researchers attended the inaugural Cboe Risk Management Conference (RMC) in Tel Aviv, Israel on November 6. A variety of topics related to the management of risk and return in investment portfolios were discussed by 17 speakers at RMC Israel, including the three speakers pictured below: Sheldon Natenberg (left), Andy Lowenthal (center), and David Blitzer (right). A sampling of comments and topics covered by the 17 speakers[...]

  • Nov 2, 2018, 2:08 PM

    Record Volume Month for S&P 500 Options - BXMD Index Continues to Set Pace

    Record Volume Month for S&P 500 Options - BXMD Index Continues to Set Pace

    Both volatility and trading activity increased in the S&P 500® index options market over the past month as investors evaluated proposed tariffs, trade negotiations, deficits, valuations, rising interest rates and the November 6 U.S. elections.   NEW MONTHLY VOLUME RECORD FOR S&P 500 OPTIONS In October 2018, S&P 500 options set a new all-time record with 41.4 million contracts traded, the highest trading volume in a single month for S&P 500 options.   VOLATILITY[...]

  • Oct 5, 2018, 3:55 PM

    New Records for Volume and Open Interest for Cboe’s Large-Sized Options on MSCI Emerging Markets Index (MXEF)

    New Records for Volume and Open Interest for Cboe’s Large-Sized Options on MSCI Emerging Markets Index (MXEF)

    New records recently were set for volume and open interest for Cboe’s large-sized options on MSCI Emerging Markets Index (MXEF) - One-day volume on September 28 - 9,007 (including 3,203 puts and 5,804 calls) Average daily volume per month in September – 848 Open interest on September 28 – 18,774 MXEF OPTIONS AND MANAGING GLOBAL EQUITY EXPOSURE Cboe’s options on the MSCI Emerging Markets Index (MXEF) are for investors who wish to manage global equity exposure.[...]

  • Oct 5, 2018, 1:09 PM

    Russell 2000 Index - A Red October

    Russell 2000 Index - A Red October

    A prescient Barron’s article appearing on Jan. 20,2018,  “Unseen Dangers in Small-Cap Stock Rally”  claimed that Small-caps “as a group, less profitable, more heavily in debt, and more exposed to the threat of rising interest rates than many investors may realize.” may offer a plausible explanation for the recent pullback in the U.S. Small-cap benchmark, Russell 2000 Index. September Struggles: After making 23 new record highs the U.S. Small-cap benchmark,[...]