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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.

  • VIX | Trader Talk | Education | Jan 12, 2016, 3:40 PM

    The Blame Game

    The Blame Game

    Plenty of ink has been spilled about the selloff in global equity markets including SPX and RUT. We have been witness to an escalating VIX and RVX, albeit with significantly lower highs (to this point) when compared to the late August selloff. Psychologically, we like to be able to attribute market pullbacks to something specific. People want a narrative. They prefer to have something to point to and affix blame. Jesse Livermore famously spouted, “There is only one side of the market and it[...]

  • Market News | Jan 12, 2016, 11:35 AM

    How Unhealthy is the Stock Market in 2016?

    How Unhealthy is the Stock Market in 2016?

    After finishing the first full week of trading in 2016, there was nothing to be happy about the stock market. This was the worst start ever in the history of the stock market, and it all points to some more bad behavior on the horizon. With earnings season around the corner, there is nary a stock that is in position to make a move to higher ground. What seems to be ailing the markets that would have this market down so much?  2016 is turning into the year of the black swans. Four of them hit[...]

  • Market News | VIX | Trader Talk | Strategy | Jan 6, 2016, 1:22 PM

    Small Caps in Turmoil, Albeit with Lower Anticipated Volatility

    Small Caps in Turmoil, Albeit with Lower Anticipated Volatility

    The Russell 2000 (RUT) is trading at 1094, 15% off all-time highs, and has only closed lower than this level on one occasion (9/29/15) in the past 14+ months. In October of 2014, amidst the worldwide Ebola scare, RUT closed at 1068 and traded as low as 1018. Implied volatility of RUT options however, is rather sanguine despite the selloff in the benchmark Small Cap index. The CBOE Russell 2000 Volatility Index (RVX) “measures the market’s expectation of 30-day volatility implicit in the[...]

  • Market News | Technical Analysis & Charts | VIX | Dec 23, 2015, 2:01 PM

    SPX & The Golden Cross

    SPX & The Golden Cross

    For those that watch the market with a “technician’s eye” something unusual happened yesterday. It marked the first time since January 31, 2012 when the 50 day moving average on the SPX Index crossed over its 200 day moving average. Technical types call this “The Golden Cross”, which is almost unequivocally considered a bullish formation (especially in concert with increasing volume). To be fair, in order to set up a Golden Cross, it must be preceded by a “Death[...]

  • Technical Analysis & Charts | Education | Strategy | Dec 22, 2015, 2:35 PM

    2015 Year in Review with Kevin Davitt of the CBOE Options Institute

    2015 Year in Review with Kevin Davitt of the CBOE Options Institute

    Mark your calendars – this is not to be missed! A look back at the year that was in the markets with a little bit of everything. Fundamentals, technical/volatility analysis, options strategy, geopolitics, ideas for 2016 and more. Please join us Tuesday 12/29 at 3:30 PM CST time for this informative and free Webcast. Kevin is a Senior Instructor at the Options Institute. He traded equity and index options on the CBOE and PHLX floor for 8 years. He also has extensive experience[...]

  • Market News | Dec 17, 2015, 12:17 PM

    Monetary Policy (Finally) Shifts – Now What?

    Monetary Policy (Finally) Shifts – Now What?

    Yesterday, in a move more telegraphed than a Jay Cutler Pick 6, the Federal Reserve Board voted unanimously to raise the Fed Funds target rate by 25 basis points. Market watchers, and this blog’s audience don’t need a weatherman to tell them which way the wind blows. The question, as always is – what’s next? The “dot plot” points to a series of four (4) quarter point hikes over the course of 2016. We will see if the U.S. and Global economy remains on terra-firm,[...]

  • Market News | Technical Analysis & Charts | Dec 9, 2015, 11:39 AM

    An Early Retrospective on ^SPX and ^RUT

    An Early Retrospective on ^SPX and ^RUT

    The end of any calendar year gives us a perfect opportunity to look back and evaluate the year that was, and perhaps prognosticate about the year that may be. The ^SPX closed @ 2,058.90 on 12/31/14 – up nearly 12% in 2014. As I type, the ^SPX is 2,068 – up fractionally for 2015. Yesterday and today we traded either side of unchanged on the ^SPX for 2015. The broad market is oscillating between 2080 and 2,052. Yesterday the Energy sector was weighing heavily on the market and when Crude[...]

  • Market News | Dec 3, 2015, 3:27 PM

    Santa Claus Rally Hits Some European Ice

    Santa Claus Rally Hits Some European Ice

    Global market trade today has been dominated by reaction to the European Central Bank’s (ECB) decision and statement following their most recent meeting, which is being perceived as disappointing relative to expectations. Currencies and Bonds are at the forefront of the day’s activity, with the Euro (Currency) seeing it’s largest one day move since 2009 (in percentage terms). FXE, the Euro ETF proxy, is up over 3.1% to 107.20 after closing below 104.00 yesterday. Source: LiveVol[...]

  • The "Data Dependent" Fed Continues to Consider the Data

    The "Data Dependent" Fed Continues to Consider the Data

    This afternoon the minutes from the most recent Federal Reserve Open Market Committee (FOMC) meeting were released. Yesterday the market digested the October CPI (inflation) data. Next week, GDP (Tuesday) and Durable Goods (Wednesday) will be relatively important. Without question, the upcoming Unemployment Report (Non-Farm Payrolls) on 12/4 will be the most influential piece of economic data before the December Fed Meeting where most market participants anticipate the Fed will raise interest rates[...]

  • Market News | Trader Talk | Nov 16, 2015, 3:45 PM

    Not So HOT Bull Call Spread in Front of Marriott - Starwood Deal

    Not So HOT Bull Call Spread in Front of Marriott - Starwood Deal

    Domestic and Global M&A activity continues to be incredibly robust. In fact, 2015 is on track to be the best year ever, surpassing 2007, in both the US and worldwide for acquisitions. Much of the deal emphasis has been on technology and healthcare. These groups tend to have a number of conferences and the attendees have to stay somewhere. That leads us to the latest M&A transaction. Over the weekend, Marriott (MAR) announced their intent to buyout Starwood (HOT) shareholders in a $12.2 billion[...]

  • Market News | Strategy | Nov 13, 2015, 2:24 PM

    A Little Perspective: Will Next Month Be the First Interest Rate Increase Since 2006?

    A Little Perspective: Will Next Month Be the First Interest Rate Increase Since 2006?

    (Source: CME Group) As of 11/12/2015 the market is pricing in about a 64% chance of a 25 basis point rate increase at the next FOMC meeting which concludes on 12/16/2015. If Janet Yellen and the other voting members of the Federal Reserve choose to “liftoff” next month, it will be the first interest rate increase in the US since June 29, 2006. 9 Years 5 months and 17 days will have elapsed. That’s 3457 days. In 2006, GM reached its zenith with Hummer sales. 71,524 units in the[...]