Moran-Matt

Matt Moran

Matt Moran is vice president of business development for Chicago Board Options Exchange (CBOE), where he communicates with pension funds, mutual funds, and financial advisors. He has delivered more than 200 presentations worldwide on the topics of managing volatility and adding income with option-writing strategies. Previously, he served trust counsel at Harris Bank and vice president at Chicago Mercantile Exchange. He is an associate editor of two Institutional Investor publications — The Journal of Trading and The Journal of Index Investing. Mr. Moran holds JD and MBA degrees from the University of Illinois.

  • Cboe Benchmark Indexes | Nov 8, 2017, 11:41 AM

    Tech Sector Index is Top Performer in 2017, as Cboe Plans Launch of Options on Ten Select Sector Indexes

    Tech Sector Index is Top Performer in 2017, as Cboe Plans Launch of Options on Ten Select Sector Indexes

    One of the most frequent types of questions I receive from investors involves the topic of year-to-date performance.  Many investors are very interested in tracking how indexes have performed in the current year. As shown in the two charts below, of the ten S&P Select Sector indexes, the top and bottom performers in terms of price index returns in 2017 (through November 7) were the S&P Technology Select Sector Index (IXT), which was up 32%, and the S&P Energy Select Sector Index[...]

  • VIX | Trader Talk | Nov 4, 2017, 7:14 AM

    VIX Index Hits 9.14, its All-Time Daily Closing Low Value

    VIX Index Hits 9.14, its All-Time Daily Closing Low Value

    On November 3 the Cboe Volatility Index® (VIX®) closed at 9.14, an all-time record low for both a daily and weekly closing value for the index. While the news media often focuses on the spot VIX Index, volatility traders analyze the price movements of VIX futures. The prices for VIX futures at the close on November 3 ranged from 10.1 to 16.4. Investors can learn more about use of VIX futures and options at www.cboe.com/VIX and at upcoming Cboe Risk Management Conferences – [...]

  • VIX | Trader Talk | Strategy | Trade Ideas | Cboe Benchmark Indexes | Nov 2, 2017, 4:14 PM

    Historic Volatility Recently Dropped Below 1.7 for Eight Cboe Benchmark Indexes

    Historic Volatility Recently Dropped Below 1.7 for Eight Cboe Benchmark Indexes

    In times of geopolitical uncertainties, many investors are searching for investments with low volatility and higher yields. Several news stories have noted that stock indexes recently had low volatility. On October 18 the 20-trading-day historic volatility for the S&P 500 (SPX) Index dropped to 3.4, its lowest level since 1969 (source: Bloomberg). There now is concern that with higher price-earnings ratios, the volatility of stock indexes could spike in coming months. EVEN LOWER HISTORIC VOLATILITY[...]

  • VIX | Oct 25, 2017, 11:34 AM

    Chicago Panel Discusses Current Dynamics of the VIX® Market

    Chicago Panel Discusses Current Dynamics of the VIX® Market

    I recently participated in VIX roadshow panel discussions in Boston, New York, and Chicago. Last week at Cboe I moderated a discussion of the Current Dynamics of the VIX® Market that featured these four expert panelists: Anand Omprakash, Director, Equity Derivatives Strategy and Structuring, BNP Paribas Dominic Salvino, VIX Option Specialist, Group One LLC Rich Ledee, CFA, Head of Capital Markets, ProShares Joanne M. Hill, PhD, Chief Advisor for Research and Strategy, CBOE[...]

  • Oct 23, 2017, 2:19 PM

    Record Volume for Mini-SPX XSP Options at Cboe

    Record Volume for Mini-SPX XSP Options at Cboe

    In recent years many investors have expressed interest in more flexibility for index options in terms of both contract size and and more expirations. So far this month (through October 20) Cboe’s options on the Mini-SPX Index (ticker XSP) have had average daily volume of more than 30,800 contracts. XSP options are on track to set an all-time record for average daily volume in a month (the previous high for average daily volume in a month was around 23,760 contracts) XSP VOLATILITY SKEW CHART The[...]

  • Oct 17, 2017, 12:41 PM

    Ten Charts Show Strong Growth for Cboe Index Products in 2017

    Ten Charts Show Strong Growth for Cboe Index Products in 2017

    An October 17 press release introduced a new corporate name -- Cboe Global Markets -- that “builds on the brand capital of CBOE and the global reach of the Bats business. In Cboe Global Markets, the word ‘Cboe’ is titlecase vs. uppercase … This subtle change signals how the company has greatly expanded beyond its options heritage to a business with multiple asset classes and a much larger global footprint.” Below is an update with ten charts that show growth in 2017[...]

  • VIX | Oct 9, 2017, 3:16 PM

    Four Facts to Help Address the Issue – Is the VIX “Low” in 2017?

    Four Facts to Help Address the Issue – Is the VIX “Low” in 2017?

    In the past year a number of news reporters and others have asked if the CBOE Volatility Index® (VIX®) was at an unusually “low” level in light of all the worldwide geopolitical uncertainties. The average daily closing levels for the VIX Index are 19.4 since January 1990, but only 12.8 since June 2016. At the 70th CFA Institute Annual Conference in May 2017, Richard Thaler of the University of Chicago opined that the “low” level of the VIX Index was one of the[...]

  • Oct 2, 2017, 1:47 PM

    Current Dynamics of the VIX Market Discussed by Panel in NYC

    Current Dynamics of the VIX Market Discussed by Panel in NYC

    On September 27 in New York City, fifty financial professionals attended a panel discussion on Current Dynamics of the VIX Market. SPEAKERS I moderated the session that featured expert speakers Bob Dwyer of ProShares; Aymen Boukhari of Societe Generale, Joanne Hill of CBOE Vest Financial; and Vinit Srivastava of S&P Dow Jones Indices.     SOME OF THE TOPICS AND ISSUES DISCUSSED Among the topics discussed were investor strategies and recent volume records for VIX futures[...]

  • Cboe Benchmark Indexes | Sep 28, 2017, 8:06 AM

    Panel in NYC on Accessing the Volatility Risk Premium with Cash-Secured Put Writing

    Panel in NYC on Accessing the Volatility Risk Premium with Cash-Secured Put Writing

    Earlier this month CBOE and CAIA Association teamed up to present a panel discussion in New York City on Accessing the Volatility Risk Premium with Cash-Secured Put Writing. I was pleased to see great feedback on the event. SPEAKERS The panel discussion featured four speakers who are shown (left to right) in the above picture -- Derek Devens, Managing Director, Neuberger Berman Robert Specht, Portfolio Manager, Additive Advisory and Capital Tripp Zimmerman, CFA, Associate Director of Research,[...]

  • Sep 26, 2017, 3:51 PM

    New Daily Volume Record of 2.61 Million for VIX Options, as Investors Engage in Hedging and in Short VIX Futures Trades

    New Daily Volume Record of 2.61 Million for VIX Options, as Investors Engage in Hedging and in Short VIX Futures Trades

    On September 25th a new daily volume record of 2.61 million contracts was set for options on the CBOE Volatility Index® (VIX®), as the VIX Index rose 6.5% to close at 10.21 that day. TOP TEN VOLUME DAYS FOR VIX OPTIONS Four of the top ten days for VIX options volume occurred in 2017. NEWS COVERAGE OF TRADING ACTIVITY IN VIX OPTIONS AND VIX FUTURES Recent news coverage has highlighted investor use of both VIX options and VIX futures. A September 25 news story in Reuters entitled “VIX[...]

  • Education | Sep 12, 2017, 8:36 AM

    Options on Ten S&P Select Sector Indices To Launch

    Options on Ten S&P Select Sector Indices To Launch

    On September 12 CBOE Holdings, Inc. announced plans to expand its suite of product offerings tied to S&P Dow Jones Indices with the planned launch of options on the 10 S&P Select Sector Indices that comprise the S&P 500 Index, a key benchmark of the U.S. equities market.   Options will be available on 10 sectors that comprise the S&P 500, pending regulatory approval.   The new options are expected to hold particular market appeal for European investors[...]

  • Aug 25, 2017, 3:46 PM

    Record Days for VIX Futures and Options Volume and Open Interest This Month

    Record Days for VIX Futures and Options Volume and Open Interest This Month

    Despite the fact that the average daily closing value of the CBOE Volatility Index® (VIX®) is about 11.5 so far this year, VIX futures and options both had record days for volume and for open interest this month. OPEN INTEREST RECORDS. VIX futures hit a new record for open interest with more than 673,000 contracts on August 7, and VIX options reached a new record for open interest with 14,783,380 contracts open on August 15. VOLUME RECORDS. August 10 was an all-time record volume day[...]

  • Aug 25, 2017, 8:39 AM

    Open Interest Grows for CBOE Options on EAFE and EM Indexes

    Open Interest Grows for CBOE Options on EAFE and EM Indexes

    Investors who wish to explore large-sized cash-settled index tools that can help manage global equity risk are taking a look at CBOE’s options on the MSCI EAFE® Index (ticker MXEA) and on the MSCI Emerging Markets Index (ticker MXEF). These index options have the potential to generate more income by receiving options premiums, and to help protect a portfolio from damaging huge drawdowns.  The combined aggregate open interest for MXEA and MXEF options grew from around 3,200 contacts[...]

  • Education | Aug 18, 2017, 1:26 PM

    Demand for Disaster Protection Increases as CBOE SKEW Index Tops 142 Each Day This Week

    Demand for Disaster Protection Increases as CBOE SKEW Index Tops 142 Each Day This Week

    The CBOE SKEW Index (SKEW) topped 142 on each of the first four trading days this week. The long-term daily average for the SKEW Index (since January 1990) is 118.8, but the daily average for the SKEW Index in 2017 (through August 17) is a much higher 134.5. CBOE SKEW Index values, which are calculated from weighted strips of out-of-the-money S&P 500 options, often rise to higher levels as investors become more fearful of a “black swan” event — an unexpected event of large magnitude[...]

  • Jul 24, 2017, 8:46 AM

    Strong Growth in Volume for Mini-SPX (XSP) Options

    Strong Growth in Volume for Mini-SPX (XSP) Options

    A portfolio manager recently called me to discuss Mini-SPX (ticker XSP) options, and told me he is trading the XSP options and he liked several features about the XSP options, including the “no-early-call-away” feature, the tax treatment, the contract size, and the fact that the XSP options prices appeared to track pretty well the prices of the larger-sized options on the S&P 500® Index (ticker SPX).  GROWTH IN VOLUME FOR XSP OPTIONS As shown in the chart below, the average[...]