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.

  • Market News | Education | Mar 6, 2015, 3:21 PM

    Buzz Gregory Discusses Skew, Term Structure, and Volatility Around the World

    Buzz Gregory Discusses Skew, Term Structure, and Volatility Around the World

    On Friday Krag “Buzz” Gregory, Equity Derivatives Strategist, Goldman Sachs delivered an illuminating presentation on Volatility Around the World. Key topics covered included skew and term structure. CBOE SKEW INDEX – HIGHEST YEAR IN 2014 As an introduction to an overview of Buzz’s remarks, I note that in 2014 the average daily close for the CBOE Volatility Index (VIX) was 14.2 for the second year in a row, and the CBOE SKEW Index had its highest-ever average daily closing[...]

  • Technical Analysis & Charts | Education | Mar 6, 2015, 2:30 PM

    Discussion of Risk Premia and Volatility Selling Strategies

    Discussion of Risk Premia and Volatility Selling Strategies

    Can volatility-selling strategies deliver superior risk-adjusted returns over the long term, particularly in light of the fact that index options generally have been richly priced? On Friday at the CBOE Risk Management Conference (RMC), presentations on Risk Premia and Volatility Selling Strategies were delivered by Donald Pierce, CFA, Chief Investment Officer, San Bernardino County Employees' Retirement Association, and Defina Maluki, Portfolio Manager, Barclays Wealth and Investment Management. BENCHMARK[...]

  • Market News | Mar 5, 2015, 9:00 PM

    Presentations on Interest Rate Volatility and the VXTYN Index

    Presentations on Interest Rate Volatility and the VXTYN Index

    The topic of volatility of interest rates and bonds has the potential to be of huge concern and importance to many individual and institutional investors in the next few years. On Thursday at the 31st CBOE Annual Risk Management Conference in Carlsbad, presentations on Interest Rate Volatility were delivered by - Yoshiki Obayashi, Managing Director, Applied Academics, LLC and Basil Williams, Co-Chief Investment Officer, Mariner Investment Group. CHARTS ON INTEREST RATE VOLATILITY The speakers presented[...]

  • Trader Talk | Education | Futures | Mar 5, 2015, 7:57 PM

    Plan Fiduciaries Discuss Trends in Institutional Options and Volatility Product Usage

    Plan Fiduciaries Discuss Trends in Institutional Options and Volatility Product Usage

    On Thursday at the 31st CBOE Annual Risk Management Conference in Carlsbad, Colin Bebee of Pension Consulting Alliance (PCA) moderated a Panel on Trends in Institutional Options and Volatility Product Usage. A pension fund sponsor on the panel noted that his fund made an allocation to the CBOE S&P 500 BuyWrite Index (BXM), and in the future his fund could consider cash-secured put writing. The Risk/Return Trade-off chart (from the January 2015 paper at www.cboe.com/funds) shows strong risk-adjusted[...]

  • Technical Analysis & Charts | Education | Mar 5, 2015, 9:35 AM

    Options-Based Funds Had Lower Standard Deviation Over the Past 15 Years

    Options-Based Funds Had Lower Standard Deviation Over the Past 15 Years

    On Wednesday at the 31st Annual CBOE Risk Management Conference, a joint presentation on a new study was delivered by Keith Black, Ph.D., CAIA, CFA, Managing Director, Curriculum and Exams, Chartered Alternative Investment Analyst (CAIA) Association.  (Edward Szado, Assistant Professor of Finance, Providence College was scheduled to be on the panel with Dr. Black, but was delayed by weather on the East Coast and unable to attend). Early this year Dr. Black and Dr. Szado published their new groundbreaking[...]

  • Market News | Mar 4, 2015, 9:00 PM

    Panel on The Evolution of Options Strategies on the Buy-Side Trading Desk

    Panel on The Evolution of Options Strategies on the Buy-Side Trading Desk

    On Wednesday at the CBOE Risk Management Conference, a panel discussed The Evolution of Options Strategies on the Buy-Side Trading Desk. Participants in the discussion were -- Moderator: Andy Nybo, Principal, Head of Derivatives, TABB Group Andrew Claeys, CFA, Director of Trading, Analytic Investors Ken Kwalik, Portfolio Manager, Investment Management Division, Goldman Sachs Mahsa Zeinali, Chief Operating Officer, Rosen Capital Advisors Topics discussed included -- Selecting order channels for[...]

  • Technical Analysis & Charts | VIX | Education | Mar 4, 2015, 8:15 PM

    BXY and PUT Indexes - Lower Standard Deviation and Higher Return Over the 26.5 Years

    BXY and PUT Indexes - Lower Standard Deviation and Higher Return Over the 26.5 Years

    On Wednesday at the 31st Annual CBOE Risk Management Conference, a presentation on a new study was delivered by Keith Black, Ph.D., CAIA, CFA, Managing Director, Curriculum and Exams, Chartered Alternative Investment Analyst (CAIA) Association.  (Edward Szado, Assistant Professor of Finance, Providence College was scheduled to appear with Dr. Black but was delayed by bad weather). Early this year Dr. Black and Dr. Szado published their new groundbreaking study - Performance Analysis of Options-Based[...]

  • Market News | Mar 4, 2015, 7:30 PM

    Bill Speth Discusses New CBOE Options-Based Benchmark Indexes

    Bill Speth Discusses New CBOE Options-Based Benchmark Indexes

    On Wednesday at the Risk Management Conference (RMC), a presentation on New CBOE Options-Based Benchmark Indexes was William Speth, Vice President, Research and Product Development, CBOE. Mr. Speth made a number of points, including -- CBOE now offers benchmark indexes with systematic use of options / futures to achieve an investment objective such as (1) Enhance Yield, with e.g., CBOE® S&P 500® BuyWrite Index (BXMSM), and CBOE® Russell 2000® BuyWrite Index (BXR), and (2)[...]

  • Technical Analysis & Charts | Education | Mar 4, 2015, 6:00 PM

    Berlinda Liu on Deciphering VIX Futures Term Structure

    Berlinda Liu on Deciphering VIX Futures Term Structure

    On Wednesday at the 31st Annual CBOE Risk Management Conference in California, Ms. Berlinda Liu, Director of Index Research and Design, S&P Dow Jones Indices, delivered a presentation entitled Deciphering VIX Futures Term Structure. In her presentation Ms. Liu noted that -- When VIX is in Contango, the term structure is upward sloping; Shorter-term futures are cheaper than longer-term futures; Long positions suffer from roll cost; and Short positions collect positive carry. When VIX is in Backwardation,[...]

  • Technical Analysis & Charts | Education | Mar 4, 2015, 3:52 PM

    Samuel Kadziela Delivers Primer on Volatility Analysis and Trading Strategies

    Samuel Kadziela Delivers Primer on Volatility Analysis and Trading Strategies

    On Wednesday at the 31st Annual Risk Management Conference (RMC) in California, Samuel Kadziela, Director of Education at Chicago Trading Company, delivered a presentation entitled Primer on Volatility Analysis and Trading Strategies. Mr. Kadziela noted that -- Realized volatility is the volatility of the underlying contract over some period of time; Implied volatility is derived from the prices of options in the marketplace, and reflects the marketplace’s consensus expectation of future volatility. Traditional[...]

  • Market News | Feb 26, 2015, 2:01 AM

    CBOE to Develop New Index Options Products Based on FTSE and Russell Indices

    CBOE to Develop New Index Options Products Based on FTSE and Russell Indices

    Over the past dozen years, the aggregate total trading volume for options on the Russell 2000® (RUT) Index is more than 190 million contracts. In 2014 the average daily notional value of trading in Russell 2000 options was more than $10 billion. Building on the success of the Russell 2000 options, CBOE Holdings, Inc. announced today that it has entered into a licensing agreement with London Stock Exchange Group (LSEG), to develop and list options based on more than two dozen FTSE and Russell[...]

  • Market News | Education | Feb 25, 2015, 7:35 PM

    Tools to Help Manage Russell 2000 Portfolios: (1) RUT Index Options; (2) BXR BuyWrite Index, and (3) RVX Vol Futures and Options

    Tools to Help Manage Russell 2000 Portfolios: (1) RUT Index Options; (2) BXR BuyWrite Index, and (3) RVX Vol Futures and Options

    The Russell 2000® Index (RUT) hit an all-time record daily closing high of 1223.98 on February 24. Some investors still are bullish on the prospects for small-cap stocks and the U.S. economy, particularly in light of low energy prices. Other investors have expressed concern about these points - (1) For the past year the price-to-earnings ratio for the Russell 2000 Index has been slightly higher than its 10-year average of 16.3 (source: Small Cap Perspectives by Russell Indexes (Dec. 2014)); [...]

  • VIX | Trader Talk | Education | Futures | Feb 6, 2015, 10:45 AM

    Extended Trading Hours Planned for March in SPX and VIX Options

    Extended Trading Hours Planned for March in SPX and VIX Options

    Investors from around the world have expressed interest in Extended Trading Hours (ETH) for key risk management tools, and, since June 2014, the trading hours for futures on the CBOE Volatility Index® (VIX®) have been expanded to nearly 24 hours a day, five days a week. PLANS FOR ETH FOR SPX AND VIX OPTIONS NEXT MONTH CBOE announced a plan this morning to launch Extended Trading Hours for options on both the S&P 500 and the VIX indexes next month, contingent upon SEC approval. CBOE[...]

  • Market News | Technical Analysis & Charts | VIX | Education | Jan 14, 2015, 2:00 PM

    New Study – Funds That Use Options (Part 3 on Related Benchmarks & SPX Options)

    New Study – Funds That Use Options (Part 3 on Related Benchmarks & SPX Options)

    A groundbreaking new study -- “Highlights of Performance Analysis of Options-Based Equity Mutual Funds, CEFs, and ETFs” authored by Keith Black and Edward Szado -- analyzed SEC-regulated investment companies that focus on use of exchange-listed options for portfolio management (options-based funds). This is my Part 3 Blog on the study. The first part of the study presented an analysis of Options-Based Funds over the past 15 years, while the second part focused on the performance of options-based[...]

  • Education | Jan 13, 2015, 6:30 PM

    New Study – Funds That Use Options (Part 2 on Lower Volatility)

    New Study – Funds That Use Options (Part 2 on Lower Volatility)

    A new study -- “Highlights of Performance Analysis of Options-Based Equity Mutual Funds, CEFs, and ETFs” -- analyzed SEC-regulated investment companies that focus on use of exchange-listed options for portfolio management (options-based funds). I still speak with novice investors who think that all options strategies are risky, but the study found that the Options-Based Funds overall have had less volatility than some key benchmark indexes over a 15-year time period. OPTIONS-BASED FUNDS[...]