• Jul 6, 2017, 2:03 PM

    What's Trading Now?

    What's Trading Now?

    Other trades of note: VanEck Vectors Semiconductor ETF (SMH) at 82.50, a Calendar Spread traded 7,500 times. The trader sold the Jul 21st 80 strike puts and bought the Aug 18th 80 strike puts paying 1.15. PowerShares QQQ ETF (QQQ) at 136.22, a Short Strangle traded 5,000 times. The trader sold the Jul 21st 140 strike calls and the Jul 21st 132.50 strike puts for 1.21.   SPDR Gold Trust ETF (GLD) at 116.36, a Bull Call Spread traded 10,000 times. The trader bought the Sept 15th 120/125 Call spread[...]

  • Jul 3, 2017, 10:17 AM

    Predicting Market Tops and Bottoms is a Loser's Game

    Predicting Market Tops and Bottoms is a Loser's Game

    As the markets continue to move higher amid low volatility, we hear the constant chatter of market tops.  Naturally, these predictions rarely come with any date applied, setting up these foolish prognostications to be right 'at some point in the future', just like how a broken clock is right twice a day.  For investors, these predictions of impending loss and perhaps doom are useless and random, not based in fact or reason.  They are attention grabbers in the media, because they[...]

  • VIX | Trader Talk | Trade Ideas | Jul 2, 2017, 4:01 PM

    Weekend Review of Volatility Indexes and ETPs - 6/26/2017 - 6/30/2017

    Weekend Review of Volatility Indexes and ETPs - 6/26/2017 - 6/30/2017

    I’ve been traveling like a madman on behalf of CBOE in June.  I try my best to keep up with the markets when I’m out and about, but sometimes the catch up occurs outside of real time.  This weekend is one of those catch up weekends.  I was aware of the VIX move over 15.00 (who wasn’t?) and that VIX was a bit higher than it had been for most of 2017 to finish the week.  What surprised me was the level of VXST on Friday. VXST is a measure of 9-day volatility expectations[...]

  • VIX | Trader Talk | Trade Ideas | Jul 2, 2017, 11:57 AM

    Weekend Review of VIX Futures and Options - 6/26/2017 - 6/30/2017

    Weekend Review of VIX Futures and Options - 6/26/2017 - 6/30/2017

    VIX had quite a midweek move rising above 15.00 for a very short period of time before settling at 11.18 to end the week.  Note the VIX action didn’t have much of an impact on the futures contracts which can be attributed to the steep nature of the curve going into last week.  I spoke about the following trade on the Vol Views podcast this past Friday.  However, it was such a great use of VIX Weeklys that I wanted to repeat the trade here.  On Monday last week, with VIX[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jul 2, 2017, 11:14 AM

    Weekend Review of Russell 2000 Options and Volatility - 6/26/2017 - 6/30/2017

    Weekend Review of Russell 2000 Options and Volatility - 6/26/2017 - 6/30/2017

    Small caps in the form of the Russell 2000 (RUT) were up slightly last week while the Russell 1000 (RUI) was down slightly.  Friday marked the end of the second quarter.  Both RUT and RUI were higher for the second quarter with RUT gaining 2.12% while the large cap focused RUI was 2.55% higher.  We all know RUT had stellar performance from election day to the end of 2016 on both and absolute and relative basis when compared to RUI.  However, RUT has consistently underperformed[...]

  • Jun 30, 2017, 1:54 PM

    PUT Index and PUTW ETF Win Sharpe Indexing Award

    PUT Index and PUTW ETF Win Sharpe Indexing Award

    PUT Index and PUTW ETF Win Sharpe Indexing Award By Matt Moran On June 26 the CBOE S&P 500 PutWrite Index (PUT) and the WisdomTree CBOE S&P 500 PutWrite Strategy Fund ETF (PUTW) won the 2017 Index/ETF Product of the Year award at an annual ceremony that was presented by IMN and the Journal of Index Investing. The awards ceremony was held during the 22nd Annual Global Indexing and ETFs conference, a 3-day event with about 750 financial professionals (including reps of CBOE, Bats, and ETF.com)[...]

  • Jun 27, 2017, 3:54 PM

    What's Trading - PAA OTM Put Spread

    What's Trading - PAA OTM Put Spread

    CBOE Options Institute Instructor, Roma discusses Plains All-American Pipeline (PAA) amid Energy market turbulence. http://bit.ly/2tltQpN Other trades of note: iShares China Large-Cap ETF (FXI) at 40.09 a Long Straddle traded 5,000 times. The trader bought the Jul 21st 40 strike calls and the Jul 21st 40 strike puts for 1.19. Utilities Select Sector SPDR ETF (XLU) at 53.36 a Long Strangle traded 2,000 times. The trader bought the Aug 18th 54 strike calls and the Aug 18th 53 strike puts for 1.29.[...]

  • Jun 25, 2017, 4:30 PM

    The Weekly Options News Roundup – 6/25/2017

    The Weekly Options News Roundup – 6/25/2017

    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.      MXEF Options Manage Global Equity Exposure On Tuesday, MSCI Inc. announced that beginning June 2018, it will include China A -Shares in the MSCI Emerging Markets Index (MXEF). CBOE offers options on the MXEF Index for investors who wish to manage global equity exposure. Cash-settled MXEF options[...]

  • VIX | Trader Talk | Trade Ideas | Jun 25, 2017, 9:00 AM

    Weekend Review of Volatility Indexes and ETPs - 6/19/2017 - 6/23/2017

    Weekend Review of Volatility Indexes and ETPs - 6/19/2017 - 6/23/2017

    VXST was slightly higher while the rest of the SPX related volatility indexes dropped last week.  All moves were relatively small as we have truly entered the summer doldrums, at least for broad based index volatility. There’s very little exciting on the table below.  TYVIX bumped up slightly, but is still at very low levels.  VVIX remaining over 80.00 is interesting as traders may continue to take advantage low VIX to get long volatility exposure through buying calls or spreads[...]

  • VIX | Trader Talk | Trade Ideas | Jun 24, 2017, 7:13 PM

    Weekend Review of VIX Futures and Options - 6/19/2017 - 6/23/2017

    Weekend Review of VIX Futures and Options - 6/19/2017 - 6/23/2017

    VIX was a bit lower to end the week and the curve moved down as well.   We retired June last week and now July is the front month and is at a premium of just over 1.80 to finish the week.  Before getting into a trade I would like to point out some heavy activity that abounded last week in the VIX Weekly options expiring this coming week.  There was a pretty big buyer of the VIX Jun 28th 19, 20, and 21 Calls paying 0.10 for the 19’s and 0.05 for both the 20’s and[...]

  • VIX | Trader Talk | Trade Ideas | Jun 24, 2017, 6:55 PM

    Weekend Review of Russell 2000 Options and Volatility - 6/19/2017 - 6/23/2017

    Weekend Review of Russell 2000 Options and Volatility - 6/19/2017 - 6/23/2017

    The Russell 2000 (RUT) was up by 0.57% last week while the large cap focused Russell 1000 (RUI) gained only 0.23%.  For the year RUT is now up 4.25% while RUI has gained 8.84% as large cap stocks continue to dominate 2017 after the huge outperformance of small cap stocks from election day to the end of 2016.  On Monday RVX closed below 14.00 for the first time in years.  Finishing the day at 13.89 was also a 2017 low for RVX (kind of makes sense if we haven't been below 14.00 for[...]

  • Jun 22, 2017, 1:55 PM

    Explore Options on the MSCI Emerging Markets Index (MXEF)

    Explore Options on the MSCI Emerging Markets Index (MXEF)

    On June 20 MSCI, Inc. issued an announcement that noted (in part) – “ … beginning in June 2018, it will include China A shares in the MSCI Emerging Markets Index and the MSCI ACWI Index. This decision has broad support from international institutional investors with whom MSCI consulted, primarily as a result of the positive impact on the accessibility of the China A market of both the Stock Connect program and the loosening by the local Chinese stock exchanges of pre-approval[...]

  • Trader Talk | Jun 21, 2017, 12:57 PM

    Sixth Annual CBOE RMC Europe Set for London in September

    Sixth Annual CBOE RMC Europe Set for London in September

    Today may be the longest day of the year, but I’m already looking forward to a post-Labor Day event, specifically the 6th Annual European version of CBOE’s Risk Management Conference which will be held September 11th through 13th.   This year we will be visiting a new location just outside London, The Grove Hotel which appears to be an ideal setting for discussing all things derivatives and volatility.  Day one kicks off with a discussion titled New Developments in Options[...]

  • Trader Talk | What's Trading | Jun 19, 2017, 3:44 PM

    What's Trading Today? FB Bull Put Spread...

    What's Trading Today?  FB Bull Put Spread...

    Facebook Bull Put Spread With FB trading at 151.95 someone sold 200 FB Jun 30th 152.50 Puts for 2.44 and bought the FB Jun 30th 146.00 Puts for 0.60 and a net credit of 1.84.  A quick summary appears in the video below. At expiration the net result with FB above 152.50 would be a profit of 1.84, equal to the credit taken in on the trade.  The worst case scenario is a loss of 4.66 and this trade has a break-even of 150.66.    Other trades of note: With Bank of America (BAC)[...]

  • Jun 19, 2017, 3:20 PM

    Will China A-Shares Be Added to the MSCI Emerging Markets Index?

    Will China A-Shares Be Added to the MSCI Emerging Markets Index?

    For managers of global index portfolios this week, a big issue is whether or not MSCI will add China A-Shares to the MSCI Emerging Markets Index (MXEF). MSCI plans to announce its 2017 Market Classification Review on Tuesday, June 20, shortly after 4:30 p.m. EDT. A June 17 headline to a Barron’s story stated -- “Will China Gain Entry to MSCI Indexes? The giant indexer has said no three years in a row, but this time may be different. Approval would offer a nice boost to China’s[...]