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Kevin Davitt

Kevin Davitt is a Senior Instructor for The Options Institute at Cboe, the educational arm of the Company. Davitt joined Cboe in 2015. Prior to his work with The Options Institute, Davitt was a successful Market Maker on the floor of the Cboe for LETCO Trading/TD Options as well as Market Street Securities. Davitt traded a number of Russell Indices between 2003 and 2007. Kevin also has extensive experience in commodity trading. He has worked with retail and institutional clientele in the markets. Davitt has provided commentary for Bloomberg, Reuters, Barchart, Inside Futures and various other market based media. He is a graduate of Marquette University (Finance and Political Science). Kevin is a proud Evans Scholar Alum. Outside of work he enjoys time with his wife, young son, and dog. Kevin likes to read, run, and see live music.

  • Oct 20, 2020, 9:59 AM

    Inside Volatility Trading: October 20, 2020

    Inside Volatility Trading: October 20, 2020

    2020: The Clash Should I stay or should I go now? Should I stay or should I go now? If I go there will be trouble And if I stay it will be double So ya gotta let me know The Clash   Markets are fundamentally driven by supply and demand. In general, a well-supplied market will push prices lower, all else constant, and vice versa. Derivative markets, particularly the implied volatility of option values, are reflective of the overall supply/demand dynamic at a given point in time. A shortage[...]

  • Oct 6, 2020, 9:59 AM

    Inside Volatility Trading: October 6, 2020

    Inside Volatility Trading: October 6, 2020

    And I rose In rainy autumn And walked abroad in a shower of all my days. High tide and the heron dived when I took the road        Over the border            And the gates Of the town closed as the town awoke.    A springful of larks in a rolling Cloud and the roadside bushes brimming with whistling    Blackbirds and the sun of October Dylan Thomas If 2020 was a marathon, U.S. readers are approaching mile 20. For our global audience,[...]

  • Sep 22, 2020, 11:25 AM

    Inside Volatility Trading: September 22, 2020

    Inside Volatility Trading: September 22, 2020

    Insights from the Options Institute   Genuine day will come When the wind decides to run And shakes the stairs that stab the wall And turns the page in a future age Some trees will bend and some will fall But then again so will us all Let’s turn our prayers into outrageous dares And mark our page in a future age Wilco – Jeff Tweedy Sometimes it helps to go back before you try to move forward. We know a lot about the past and it can be instructive about the future. Before we run afoul[...]

  • Sep 10, 2020, 8:58 AM

    Inside Volatility Trading: September 10, 2020

    Inside Volatility Trading: September 10, 2020

    There’s fire all around But this is all illusion I’ve seen better days than this one I’ve seen better nights than this one Tension is rebuilding Something’s got to give Something's got to give Beastie Boys – Check Your Head It’s difficult to make sense of the world today, but uncertainty (i.e. volatility) is a constant. Accepting that reality can be very empowering. The relative degrees of ambiguity waxes and wanes. Without moving into some watered down new-age[...]

  • Aug 25, 2020, 11:00 AM

    Inside Volatility Trading: August 25, 2020

    Inside Volatility Trading: August 25, 2020

    “The stock market isn’t the economy. The economy is production and jobs, and there are shortfalls in virtually every sector of the economy.” -Janet Yellen (Washington Post) In a previous Inside Volatility we highlighted the French Revolution and the potential shifting of volatility regimes. In Charles Dickens' magnum opus, A Tale of Two Cities, he documents the French Doctor Manette after his years of imprisonment during the Reign of Terror. The novel’s beginning is an interesting[...]

  • Aug 11, 2020, 10:59 AM

    Inside Volatility Trading: August 11, 2020

    Inside Volatility Trading: August 11, 2020

    You got my heart, you got my soul You got the silver, you got the gold You got the diamonds, from the mine Well that’s alright It’ll buy some time -The Rolling Stones “You’ve Got the Silver” Cboe® is excited to announce the launch of the Mini Cboe Volatility Index (Mini VIX™) futures as of August 10. The Bloomberg ticker is VXLA. The smaller sized futures contract has a $100 multiplier as opposed to the $1000/point inherent in the standard contract. These contracts[...]

  • Jul 28, 2020, 11:00 AM

    Inside Volatility Trading: July 28, 2020

    Inside Volatility Trading: July 28, 2020

    They say ev’ry man needs protection They say ev’ry man must fall Yet I swear I see my reflection Some place so high above this wall Bob Dylan – I Shall Be Released On July 28 of 1794, Maximilien Robespierre was executed by guillotine in Paris during the Reign of Terror. Robespierre was one of the most influential leaders of the Jacobins during the French Revolution. The French were inspired by the American Revolution and other Enlightenment principles. His death arguably brought[...]

  • Jun 2, 2020, 12:11 PM

    Inside Volatility Trading: June 2, 2020

    Inside Volatility Trading: June 2, 2020

    So Many Roads Twenty-five years ago (6/2/1995) the Grateful Dead began what would prove to be their final stand at the Shoreline Amphitheater. The Grateful Dead cultivated an exotic and far flung following. There was nothing standardized about their creative approach and it paid off. In the mid-90s, options were still generally considered to be niche tools used by some eccentric types. Similarly, The Dead were stereotyped as an unusual band without broad appeal, despite a considerable and devoted[...]

  • May 19, 2020, 12:39 PM

    Inside Volatility Trading: May 19, 2020

    Inside Volatility Trading: May 19, 2020

    Our days were long, our nights were longer Count the seconds, watch the hour Although we live on the US Dollar You and me we’ve got our own sense of time (Ezra Koenig/Vampire Weekend- Hannah Hunt) It’s been said countless times and there are constant reminders, but as Fed Chair Jerome Powell remarked on May 13, we’re living through a period "without modern precedent." We’re two months removed from nearly nationwide stay-at-home orders. The most populous county in the United[...]

  • May 6, 2020, 12:26 PM

    Inside Volatility Trading: May 6, 2020

    Inside Volatility Trading: May 6, 2020

    It might be over soon, two, two It might be over soon Where you gonna look for confirmation? So as I’m standing in the station It might be over soon….. Justin Vernon (22, A Million) Justin Vernon and his band Bon Iver put out their third studio album (winter) in late 2016. Their work is circuitous, dense, ever changing, and beautiful. Last year they finished the seasonal loop when they released (spring) “i, I.” Markets, at least from some perspectives, could be described[...]

  • Apr 21, 2020, 10:33 AM

    Inside Volatility Trading: April 21, 2020

    Inside Volatility Trading: April 21, 2020

    Trying to make some sense of it all But I can see, it makes no sense at all Is it cool to go to sleep on the floor? Cause I don't think that I can take anymore Clowns to the left of me, jokers to the right Here I am, stuck in the middle with you -Egan/Rafferty Cboe’s Inside Volatility pieces attempt to illuminate the investment landscape through a unique lens whose filters include index options, history, geopolitics…and some music. To wit, 1973 was a monumental year in both the United[...]

  • Apr 7, 2020, 8:34 AM

    Inside Volatility Trading: April 7, 2020

    Inside Volatility Trading: April 7, 2020

    Am I protecting or breaking an oath For Sigma oasis, it’s neither and both You’re finally weightless, so take to the air Sigma oasis you’re already there You’re already there (Anastasio/Marshall/Herman) Sigma is the 18th letter in the Greek alphabet and there are three distinct notations. The Greeks developed an incredibly robust culture with advanced comprehension of the natural world including mathematics, medicine, and economics. Uppercase sigma (Σ) is used to denote[...]

  • Mar 24, 2020, 8:57 AM

    Inside Volatility Trading: March 24, 2020

    Inside Volatility Trading: March 24, 2020

    These are extraordinary times with great uncertainty for everyone. We hope that our Inside Volatility Newsletter provides you with useful insights and historical context to help you navigate this difficult period. On a personal note, we would like to express our gratitude to our amazing health care workers. These people are heroes. Period. End of story. They go to work and have no idea what’s in front of them. They are willing to put their work, caring for those impacted by COVID-19 and other[...]

  • Mar 11, 2020, 10:55 AM

    Inside Volatility Trading: March 11, 2020

    Inside Volatility Trading: March 11, 2020

    Volatility Spreads Alongside COVID-19 Fears “And as you rise above The fear-lines in his brow You look down Hear the sound Of the faces in the crowd” Source: Fearless: Gilmour/Waters It’s difficult to strike an appropriate chord when analyzing and educating interested parties about volatility in the current environment. If “a picture says a thousand words” then the word count for this Inside Volatility Newsletter will come in between David Foster Wallace’s magnum[...]

  • Feb 26, 2020, 11:27 AM

    Inside Volatility Trading: February 26, 2020

    Inside Volatility Trading: February 26, 2020

    In like a Lion….or Bulls on Parade In the late 1960s John Fogerty (Creedence Clearwater Revival) wrote Proud Mary which could well describe the broad market of late. Big wheel keep on turnin’ Proud Mary keep on burnin’ Rollin’, rollin’, rollin’ on the river As we roll toward the end of February and into March, equity markets have been on a tear. The S&P 500® Index keeps on turnin’, burnin’, and rollin’. March tends to act as a bridge[...]