• Market News | VIX | Trader Talk | Aug 7, 2016, 10:00 AM

    Weekend Review - VIX Options and Futures - 8/1 - 8/5

    Weekend Review - VIX Options and Futures - 8/1 - 8/5

    VIX was down 4% last week and is currently hovering around two year lows. This is not exactly what many volatility observers were expecting for 2016 (including the author). VIX has been at pretty low levels for a couple of weeks and since there’s been no real spike VIX futures are finally working lower. Friday was the one-year anniversary of the first VIX Weeklys Futures settlement. On August 5th last year the first VIX Weeklys Futures contracts settled on the open at 12.16. Apparently[...]

  • Market News | Trader Talk | Aug 7, 2016, 8:50 AM

    Earnings Next Week - 8/8 - 8/12

    Earnings Next Week - 8/8 - 8/12

    The list is starting to shrink as we get toward the end of earnings season.  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 | Aug 6, 2016, 4:00 PM

    Weekend Review - Volatility Indexes and ETPs - 8/1 - 8/5

    Weekend Review - Volatility Indexes and ETPs - 8/1 - 8/5

    When S&P 500 implied volatility is already low there’s not much room for a further drop.  That was the case going into this past week and as seen below with the S&P 500 climbing all four of the S&P 500 related volatility indexes were lower, but not by much. VVIX in the mid 80’s remains high, but believe it or not that may reflect VIX Put buying instead of VIX Call purchasing.  Demand for puts on any VIX strength or to take advantage of steep contango[...]

  • Market News | Trader Talk | Trade Ideas | Aug 6, 2016, 10:06 AM

    Weekend Review - Russell 2000 Options and Volatility - 8/1 - 8/5

    Weekend Review - Russell 2000 Options and Volatility - 8/1 - 8/5

    Last night we were (somewhat) entertained by the opening ceremonies for the Summer Olympics and for the next 17 days will be subjected to story enhanced competitions.  I have been monitoring a competitive struggle already this year.  The battle between small cap and large cap stocks.  It has been like a marathon with the Russell 2000 (RUT) falling way back, but pacing itself relative to the Russell 1000 (RUI).  RUI had quite a lead after the first six weeks or so of 2016. [...]

  • Maury Meets Mark

    Maury Meets Mark

    In the lively chat rooms of Hamzei Analytics, Maury tales are abound.  Saying Maury (a fictitious character) is frugal, is an understatement.  His motto is “What’s for free, is for me”.  At the very least, he hates wholesale prices and want to buy below cost, thus negotiates for the best bargain. He has set the standard for getting the most out of our options trades. We have come to appreciate the “Maury” trades in the HFT Options Trading Chatroom. Old[...]

  • VIX | Trader Talk | Education | Trade Ideas | Aug 3, 2016, 11:25 AM

    CBOE Options Institute Class to Focus on VIX and Volatility

    CBOE Options Institute Class to Focus on VIX and Volatility

    The CBOE Options Institute is hosting the first in a series of classes that will focus on different aspects of option and volatility trading. The first class, appropriately named Focus on VIX and Volatility Products, will be held on Friday August 19th at CBOE. For those unable to make it to Chicago the class is also available online. Specific topics to be covered include VIX and the behavior of volatility indexes VIX futures and options price behavior Trading VIX related Exchange Traded Products Long,[...]

  • Trader Talk | Aug 3, 2016, 9:45 AM

    Agenda for Fifth Annual CBOE RMC Europe on 26 – 28 September

    Agenda for Fifth Annual CBOE RMC Europe on 26 – 28 September

      The agenda for the Fifth Annual CBOE RMC Europe is available at http://www.cboermceurope.com/. The conference will be held Monday through Wednesday, September 26 - 28, 2016, at the Powerscourt Hotel<http://www.cboermceurope.com/hotel--travel.html>, County Wicklow, Ireland. 33 SPEAKERS Jim VandeHei<http://www.cboermceurope.com/keynote-speaker.html>, Co-founder of POLITICO, will be a keynote speaker, delivering insights and predictions for the U.S. Presidential election. Here is[...]

  • Trader Talk | Education | Aug 1, 2016, 10:10 AM

    Pulling Yourself Out of a Trading Slump

    Pulling Yourself Out of a Trading Slump

    Trading the market is all about outcomes, and it’s no surprise that we are driven to win every single day. When you’re plugging along and banking some nice wins, all is right with the world. You feel great. You believe in your skills. Your mindset is in a healthy place. The psychology of trading is on your side. We have all been in a trading slump, sometimes thinking that trading each day is a nightmare that will never end.  I've been there, recently in fact.  It was at a certain[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jul 31, 2016, 7:56 PM

    Weekend Review - Volatility Indexes and ETPs - 7/25 - 7/29

    Weekend Review - Volatility Indexes and ETPs - 7/25 - 7/29

    It was as quiet a week as I can remember with respect to the S&P 500 focused volatility indexes.  An quieter and the lines below would look like a single line. The long ETPs really suffered last week as we entered the week in very steep contango when comparing VIX with the August and September futures.  Of course what is bad for VXX is good for XIV and SVXY which both rose over 9% and up over 30% on the year.  VVIX actually rose a tad last week as well as VIX option[...]

  • Market News | Jul 29, 2016, 3:32 PM

    The Weekly Options News Roundup – 7/29/2016

    The Weekly Options News Roundup – 7/29/2016

    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 Welcomes NSE This week, CBOE was pleased to host a delegation of executives, senior managers and council members from the Nigerian Stock Exchange. NSE is the third largest stock exchange in Africa, based on market capitalization. The delegation from NSE came to learn about exchange management and operations.[...]

  • Market News | Trader Talk | Trade Ideas | Jul 28, 2016, 7:26 PM

    Earnings Next Week - 8/1 - 8/5

    Earnings Next Week - 8/1 - 8/5

    Next week is another huge week for earnings.  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.

  • Trader Talk | Education | Jul 26, 2016, 2:30 AM

    Happy Birthday to Mick Jagger Who Told Us "Time is on our side"

    Happy Birthday to Mick Jagger Who Told Us "Time is on our side"

    Today is the 73rd birthday for Rolling Stones front man Sir Michael Philip ‘Mick’ Jagger.  His accomplishments would take up more space that I have available in this posting, but the statement, “one of the most dominant cultural figures of our time” about sums it up.  One of my favorite Rolling Stones songs is “Time Is on My Side” which I believe is a great statement with respect to potential success trading options.  I always think of that song[...]

  • Technical Analysis & Charts | VIX | Futures | Jul 25, 2016, 9:38 AM

    Weekly Market Outlook - Where We Stand As Fed Approaches & Earnings Seasons Is Underway

    Weekly Market Outlook - Where We Stand As Fed Approaches & Earnings Seasons Is Underway

    Despite starting last week out overbought and near all-time highs, the bulls decided by the end of the week they were still buying more.  Friday's close of 2175.03 was not only 0.6% higher than the prior week's close, it was a record high close for the S&P 500 (SPX) (SPY). No, it's not a giant gain, but it's an impressive one all things considered - however there are plenty of opportunities for profit-taking right now. The $64,000 question: Can the current rally last?[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jul 24, 2016, 6:12 PM

    Weekend Review - Volatility Indexes and ETPs - 7/18/2016 - 7/22/2016

    Weekend Review - Volatility Indexes and ETPs - 7/18/2016 - 7/22/2016

    VIX was the biggest mover among the four S&P 500 related volatility indexes this past week.  VIX dropped more than 5% while VXST lost 0.39% and VXV was down 1.19%.  Longer dated volatility actually rose last week with VXMT gaining 0.28%.  The curve remains very steep which I’m taking as uncertainty abounding with respect to the balance of 2016, especial the fourth quarter of 2016. Most the data points on the table below are as one would expect after a relatively[...]

  • VIX | Jul 24, 2016, 2:37 PM

    Weekend Review - VIX Futures and Options - 7/18/2016 - 7/22/2016

    Weekend Review - VIX Futures and Options - 7/18/2016 - 7/22/2016

    Last week VIX broke the 12 level, which surprised some market participants who felt 2016 was going to be a roller coaster ride that kept VIX at elevated levels.  I have already spent time on the Wall of Shame as I count as someone who felt VIX was spend more time around 20 than it has in several years this year. Do note on the term structure chart below that the shape of the curve is steep.  Those of us grasping at straws with respect to elevated volatility see that as a glimmer of hope[...]