• Technical Analysis & Charts | VIX | Futures | Strategy | Jun 6, 2016, 12:01 PM

    BigTrends.com Weekly Market Outlook - Mini-Trading Range Developing

    BigTrends.com Weekly Market Outlook - Mini-Trading Range Developing

    All things considered, the market held up quite well last week in spite of plenty of reason not to. The S&P 500 (SPX) (SPY) ended the shortened trading week with a very slight gain, and also ended the week with the bulls testing the waters of higher highs after defining a near-term floor. And yet, its failure to actually make forward progress, even though it tried to do so, is concerning in itself. We'll take a closer look at the trading range that developed last week and what it will take[...]

  • Education | Jun 6, 2016, 10:17 AM

    Options Trading For Beginners: Market Timing

    Options Trading For Beginners:  Market Timing

    Market timing is everything in investing, but when you have an egg timer running constantly it makes your opportunity for success that much more difficult.  That is what we face as option traders.  Now, as option sellers we have the luxury of time being on our side, preferring to let options decay and take in the premium before expiration.  Premium sellers are often content with a stock moving sideways.  On the other hand, option buyers need stocks to with robust action up or[...]

  • Market News | Trade Ideas | Jun 5, 2016, 2:25 PM

    Earnings Next Week - 6/6 - 6/10

    Earnings Next Week - 6/6 - 6/10

    It is a very quiet week for earnings enthusiasts as only three companies with short dated options will be reporting earnings.  As always the data below is based on the last three years of earnings results.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.  

  • Market News | VIX | Trader Talk | Trade Ideas | Jun 5, 2016, 1:55 PM

    Weekend Review - Volatility Indexes and ETPs - 5/31 - 6/3

    Weekend Review - Volatility Indexes and ETPs - 5/31 - 6/3

    The whole curve shifted a bit higher last week. We have to attribute the rise to the three-day weekend effect. At least in the case of VXST and VIX. Typically, VXV and VXMT are not impacted as much as the shorter dated volatility indexes. I might attribute the rise of longer dated volatility to the expected date for the next rate hike being pushed down the road. Despite the rise in VIX last week, the long volatility oriented ETPs were lower on the week. This is a function of the futures[...]

  • VIX | Trader Talk | Trade Ideas | Jun 4, 2016, 5:54 PM

    Weekend Review - VIX Options and Futures - 5/31 - 6/3

    Weekend Review - VIX Options and Futures - 5/31 - 6/3

    The S&P 500 was slightly higher last week and so was VIX, but we put an asterisk next to that number based on the three-day holiday weekend. The futures tell more of the story and as you can see below as with the exception of the February 2017 contract all the futures moved lower. Friday morning the stock market was weak and VIX was higher in reaction to the employment numbers. With VIX at 13.93 and the Jun VIX futures contract at 15.10 someone came in and bought 2500 of the VIX Jun[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jun 4, 2016, 12:05 PM

    Weekend Review - Russell 2000 Index and Volatility - 5/31 - 6/3

    Weekend Review - Russell 2000 Index and Volatility - 5/31 - 6/3

    The Russell 2000 - How about that??? I hear Mel Allen’s voice as I type that. Small caps went on a relative tear last week with the Russell 2000 (RUT) rising 1.19% last week while the large cap focused Russell 1000 was up 0.10%. This places RUT up 2.49% for 2016, within striking distance of the Russell 1000 which is up 2.73% year to date. More impressive is the relative performance since the lows in February. RUT has rebounded 22.1% off this year’s closing low and RUI is up 15.6% over[...]

  • Market News | Jun 3, 2016, 3:25 PM

    CBOE NAMED ‘EXCHANGE OF THE YEAR’ AT GLOBAL CAPITAL AMERICAS DERIVATIVES AWARDS 2016

    CBOE NAMED ‘EXCHANGE OF THE YEAR’ AT GLOBAL CAPITAL AMERICAS DERIVATIVES AWARDS 2016

    CHICAGO, IL – June 3, 2016 -- Chicago Board Options Exchange® (CBOE®) announced today that it was named “Exchange of the Year” Thursday night at GlobalCapital’s Americas Derivatives Awards 2016 ceremony in New York City. The annual event honors the companies, platforms, services and products throughout the Americas that have made an impact on the U.S. derivatives industry during the year. Nominations are based on market feedback and research conducted by GlobalCapital.[...]

  • Market News | VIX | Trader Talk | Education | Jun 3, 2016, 1:54 PM

    The Weekly Options News Roundup – 6/3/2016

    The Weekly Options News Roundup – 6/3/2016

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast, online and social media outlets. VIX FIX – Volatility’s Summer Lull It’s been another uneventful week for stocks, which remained relatively unchanged.   As summer approaches and temperatures heat up, volatility has remained calm, cool and collected.  Even an impending vote on U.K.’s Brexit and today’s disappointing[...]

  • Technical Analysis & Charts | VIX | Futures | May 31, 2016, 10:20 AM

    BigTrends.com Weekly Market Outlook - Key Remaining Hurdles

    BigTrends.com Weekly Market Outlook - Key Remaining Hurdles

    If anything, last week's economic and earnings news was on the weak side. That didn't stop the bulls from going on a rampage though. The S&P 500 (SPX) (SPY) gained a solid 2.5% last week, carrying the index to mew multi-week highs. The BigTrends TrendScore ended the week with a score of 93.5 (out of 100). That's about as bullish as it gets. Can it last? That remains to be seen. The argument that there's just not much valuation room for more upside still makes sense, and we don't have a key buy[...]

  • Technical Analysis & Charts | Futures | May 31, 2016, 9:50 AM

    Markets Are Getting That Overbought Look Again

    Markets Are Getting That Overbought Look Again

    After the best performance in a couple of months, markets are back to an overbought look on several indicators, and that may send diverging messages.  No doubt the price action was very bullish, rising three of five days coming off a very good finish the prior week and breaking significant support as well.  It appears that support at 2040 on the SPX 500 was to be tested and happened when the markets matched it with an oversold reading on May 19 - great timing for a low to be planted. [...]

  • Education | May 29, 2016, 11:35 AM

    "Thanks to a Fine Canadian Doctor...."

    "Thanks to a Fine Canadian Doctor...."

    (Editors Note: The following are thoughts from a floor trader friend on Memorial Day, who wishes to remain anonymous.  We have edited in this year’s dates and times. We ran this blog the last few years going into Memorial Day and received several nice comments.  We hope you enjoy it). “Memorial Day” was called “Decoration Day” many years ago. It originated after the Civil War to commemorate Union and Confederate soldiers who died in the Civil War. I guess they[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 29, 2016, 9:26 AM

    Weekend Review - Volatility Indexes and ETPs - 5/23 - 5/27

    Weekend Review - Volatility Indexes and ETPs - 5/23 - 5/27

    The S&P 500 rally along with the three-day weekend effect pushed VXST to finish Friday below 10.00 for the first time since July of last year. The VXST - VIX - VXV - VXMT curve moved lower and steepened a bit based on the calendar and the strength in the market. Looking at the table below it is like several indexes and instruments are playing limbo seeing how low they can go. VXX and the unleveraged long ETPs lost 10% while the leveraged funds gave up almost 20%. Check[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 28, 2016, 2:41 PM

    Weekend Review - VIX Futures and Options - 5/23 - 5/27

    Weekend Review - VIX Futures and Options - 5/23 - 5/27

    With the strength in stocks last week VIX finished the week just 0.02 higher than the 2016 closing low of 13.10. Always remember that part of the equation on Fridays when looking at VIX performance relates to a weekend impact where the market is closed for two days. This is accentuated when we have a three day holiday weekend so don’t be surprised if VIX rebounds a little on Tuesday regardless of what the stock market is doing. About 20 minutes after the open on Wednesday last week someone[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | May 28, 2016, 9:18 AM

    Weekend Review - Russell 2000 Index and Volatility - 5/23 - 5/27

    Weekend Review - Russell 2000 Index and Volatility - 5/23 - 5/27

    Small cap stocks continue to show some strength with the Russell 2000 (RUT) beating the Russell 1000 (RUI) for the second week in a row. Is this the beginning of a streak? RUT rose 3.43% last week while the large cap focused RUI gained 2.28%. For the year RUT is now up 1.28%, still lagging RUI which is up 2.63%. The RVX / VIX premium remains at the high end of this year’s range, despite the strong performance from small cap stocks. It may be that the uncertainty about the Fed’s[...]

  • VIX | Education | May 27, 2016, 2:35 PM

    The Weekly Options News Roundup - 5/27/2016

    The Weekly Options News Roundup - 5/27/2016

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast, online and social media outlets. CBOE Expanding its Orbit with Eris CBOE announced on Monday that it has made minority equity investment in Eris Exchange Holdings. Eris is a U.S.-based futures exchange group that offers swap futures as a capital-efficient alternative to over-the-counter swaps.  CBOE’s stake in Eris, much like its partnership[...]