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Cboe Blog

Cboe Global Markets, the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education.

  • The Art of Hedging Discussed at RMC

    The Art of Hedging Discussed at RMC

    The last presentation of the day today at CBOE’s Risk Management Conference also turned out to be one of the best. Boris Lerner, Head of US Quantitative and Derivative Strategies at Morgan Stanley and Arie Aboulafia, Senior Portfolio Manager from Capstone Investment Advisors teamed up to discuss “The Art of Hedging”.  Many market participants have forgotten that there is a non-quantitative aspect to investing and trading since the industry has become so quantitative. This session[...]

  • Market News | VIX | Blogging Options | Trader Talk | Mar 5, 2015, 11:14 AM

    2015 Risk Management Conference: CBOE President and COO Edward Provost on New Initiatives

    2015 Risk Management Conference: CBOE President and COO Edward Provost on New Initiatives

    Thursday, March 5, 2015       CBOE President and COO Edward Provost kicked off Day Two of RMC with an update on recent CBOE developments, highlighting the exchange’s efforts to broaden access to its marketplace and to   expand and diversify its product offerings. Provost began with an update on CBOE’s extended trading hours initiative.  Last June, CFE implemented near 24-hour trading in VIX futures.  Approximately 9 percent of all VIX futures trading[...]

  • Blogging Options | Trader Talk | Mar 5, 2015, 8:20 AM

    Blogging Options: CBOE Morning Update 3.5.15

    Blogging Options: CBOE Morning Update 3.5.15

    China growth target reduced overnight (7%, down from 7.5%) puts overseas stocks on the defensive.  Dollar higher, European yields falling.  Challenger Monthly Jobs Report shower rise in corporate layoffs.  Piper downgrades MCD to neutral.  Oil gave up overnight gains, metals flat.  First day of CBOE's Risk Management Conference went very well.  #CBOERMC for updates.  Volatility as an asset class Costco (COST) is up $3.12 to $150.28 in the preopen after reporting[...]

  • Market News | VIX | Trader Talk | Education | Mar 4, 2015, 6:45 PM

    CBOE Risk Management Presentation - Arbitraging Volatility Estimates

    CBOE Risk Management Presentation - Arbitraging Volatility Estimates

    The 31st edition of the CBOE Risk Management Conference kicked off today with a very educational session from Bruno Dupire who is the Head of Quantitative Research at Bloomberg. His discussion centered on trading volatility which is a core theme of many presentations that will be given over the next few days here in Carlsbad. The timing of Dupire going first at the conference was perfect as his sessions are always as educational as they are informative.  (The Twitter handle for this conference[...]

  • VIX | Blogging Options | Trader Talk | Mar 4, 2015, 12:03 PM

    CBOE Mid-Day Update 3.4.15

    CBOE Mid-Day Update 3.4.15

    Volatility as an asset class McDonald's (MCD) is recently up 7c to $99.81 after McDonald's USA announced new menu sourcing initiatives including only sourcing chicken raised without antibiotics that are important to human medicine. In addition, McDonald's U.S. restaurants will also offer customers milk jugs of low-fat white milk and fat-free chocolate milk from cows that are not treated with rbST, an artificial growth hormone.  March weekly call option implied volatility is at 34, March is at[...]

  • Blogging Options | Mar 4, 2015, 8:10 AM

    Blogging Options: CBOE Morning Update 3.4.15

    Blogging Options: CBOE Morning Update 3.4.15

    ADP Job growth came in lighter than expected for February at a 212K rate (~220K expected).  India and Poland cut interest rates, China cut overnight rate.   Commodities in a tight range.  March 4th Chicago's birthday.  Bob Evans (BOBO, off $12.00) decides not to spin off part of chain.   CBOE RMC kicks off in a few hours.  #CBOERMC to follow.  Volatility as an asset class Target (TGT) is off $0.25 $77.75 in the premarket on plans to eliminate several thousand[...]

  • Market News | Mar 3, 2015, 11:53 AM

    CBOE Mid-Day Update 3.3.15

    CBOE Mid-Day Update 3.3.15

    Volatility as an asset class Ford (F) is recently down 47c to $16.10 after the automakers reported February sales fell about 2% last month compared to the prior year. March call option implied volatility is at 18, April is at 19, May and September is at 20; compared to its 26-week average of 23. General Motors (GM)  is recently down 13c to $37.47 after reporting February U.S. sales rose a bit over 4%, but that was below the nearly 6% increase that had been forecast by analysts. March call option[...]

  • Blogging Options | Trader Talk | Mar 3, 2015, 7:40 AM

    Blogging Options: CBOE Morning Update 3.3.15

    Blogging Options: CBOE Morning Update 3.3.15

    Premier Netanyahu speaks to Congress today.  Futures off globally but not much, Oil moves up to $50. Treasury yields climb slightly.  Aussies kept rates unchanged last night.  Market reaction (if any) to Netanyahu speech unclear.  SPY off $0.60 on 1.6mm shares.  For those unable to attend CBOE's Risk Management Conference in San Diego starting tomorrow, follow us on #CBOERMC. Volatility as an asset class: Best Buy (BBY) is up $1.37 to $40 in the preopen after reporting Q4[...]

  • VIX | Blogging Options | Trader Talk | Mar 2, 2015, 1:10 PM

    CBOE Mid-Day Update 3.2.15

    CBOE Mid-Day Update 3.2.15

    Volatility as an asset class Lumber Liquidators (LL) is recently down $10.57 to $41.22 after '60 Minutes' alleges floor may violate health and safety violations.  March put option implied volatility is at 107, April is at 89, May is at 76; compared to its 26-week average of 52. Aruba Networks (ARUN) is recent down 36c to $24.45 after HP (HPQ) announced its acquiring the network company for $3B. March call option implied volatility is at 16, April is at 17; compared to its 26-week average of[...]

  • Market News | Blogging Options | Trader Talk | Mar 2, 2015, 8:00 AM

    Blogging Options: CBOE Morning Update 3.2.15

    Blogging Options: CBOE Morning Update 3.2.15

    Extended Trading Hours (ETH) for VIX options started today, Monday, March 2nd.  Extended Trading hours for VIX options are 2:00 a.m. to 8:15 a.m. Central Time (“CT”).  Regular VIX trading will resume at 8:30 a.m. and continue until 3:15 p.m. CT. www.cboe.com/ETH for more info.     China interest rate cut of 0.25% to spur economy was expected.  Personal Income for January rose 0.3%, Spending with a surprise drop of 0.2%.  ISM to be released 30 minutes[...]

  • Market News | VIX | Trader Talk | Feb 27, 2015, 3:19 PM

    The Weekly Options News Roundup – 2/26/2015

    The Weekly Options News Roundup – 2/26/2015

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast and online and social media outlets. CBOE Expanding Its Index Options Complex On Thursday, CBOE signed a licensing agreement with the London Stock Exchange Group to develop and list options on more than two dozen FTSE and Russell Indices.  Under the agreement, CBOE will become the exclusive U.S. home for options on the FTSE and Russell indices. [...]

  • VIX | Blogging Options | Trader Talk | Feb 27, 2015, 12:10 PM

    CBOE Mid-Day Update 2.27.15

    CBOE Mid-Day Update 2.27.15

    Volatility as an asset class J.C. Penney is recently down 45c to $8.67 after posting a surprise Q4 loss as higher operating expenses offset higher-than-expected sales. March weekly call option implied volatility is at 48, March calls are at 42, April is at 35; compared to its 26-week average of 54. Weight Watchers (WTW) is recently down $5.81 to $11.70 on a Q4 loss and plans to cut $100M in costs. March call option implied volatility is at 75, April is at 84, July is at 73; compared to its 26-week[...]

  • Blogging Options | Trader Talk | Feb 27, 2015, 8:10 AM

    Blogging Options: CBOE Morning Update 2.27.15

    Blogging Options: CBOE Morning Update 2.27.15

    GDP for Q4 reduced from 2.6% to 2.2%.  Slightly lowered revision had been expected, but compared to Q3 Final GDP at 5% not that encouraging.  Chicago PMI after the opening and a few other indicators later in the morning.  Oil at $49, 10-year at 2%.  Extended Trading Hours (ETH) start Monday March 2nd for VIX, and Monday March 9th for SPX.  To read a blog from a few weeks ago about ETH, click on the following: http://www.cboeoptionshub.com/2015/02/06/extended-trading-hours-planned-spx-vix-options/       [...]

  • VIX | Blogging Options | Trader Talk | Feb 26, 2015, 11:56 AM

    CBOE Mid-Day Update 2.26.15

    CBOE Mid-Day Update 2.26.15

    Volatility as an asset class Kohl's (KSS) is recently up $1 to $71.90 on a better than expected Holiday Q4 quarter. March call option implied volatility is at 22, April is at 21, July is at 20; compared to its 26-week average of 22. Sears Holdings (SHLD) is recently down $2.78 to $35.12 after announcing progress towards forming a real-estate investment trust and a Q4 loss. March call option implied volatility is at 71, April is at 58, June is at 61; compared to its 26-week average of 60. Transocean[...]

  • Market News | Blogging Options | Trader Talk | Education | Feb 26, 2015, 8:00 AM

    Blogging Options: CBOE Morning Update 2.26.15

    Blogging Options: CBOE Morning Update 2.26.15

    Big News at CBOE this morning, with CBOE announcing licensing agreement with London Stock Exchange Group (LSEG), to develop and list options based on more than two dozen FTSE and Russell indices and new products as well.   Scroll down to previous blog to get the details, we're excited about this. Weekly Claims rose 31K, the most in 14 months.  US stock futures have turned lower, Oil off almost 3%, near $49.50bbl. Volatility as an asset class Salesforce.com (CRM) is up $7.73 to $70.60[...]