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.

  • Jul 23, 2018, 11:56 AM

    Cboe’s SPX-Options-Based Benchmark Indexes, with Testimonial, 12 News Clips and White Papers - Catalysts for Growth in Use of Index Options

    Cboe’s SPX-Options-Based Benchmark Indexes, with Testimonial, 12 News Clips and White Papers - Catalysts for Growth in Use of Index Options

    When I worked at investment conferences around the year 2000 and asked attendees about use of listed options, many attendees would say they did not use listed options for a variety of reasons, including perceptions that options were too risky, too complex, too labor-intensive, and/or not well understood.  Since the 2002 launch of the Cboe BXM Index, there has been a tremendous increase in interest in and use of listed options by individual and institutional investors, and there now are more[...]

  • Trader Talk | Cboe Benchmark Indexes | Jul 6, 2018, 3:47 PM

    32 Years of Performance History for 10 Benchmark Indexes That Use S&P 500 Options – Lower Volatility and Enhanced Risk-Adjusted Returns

    32 Years of Performance History for 10 Benchmark Indexes That Use S&P 500 Options – Lower Volatility and Enhanced Risk-Adjusted Returns

    This is the 4th in a series of blogs at www.cboe.com/blogs to commemorate the 35th anniversary of the launch of SPX options on July 1, 1983. #SPX35 In 2001 some portfolio managers who engaged in strategies that used S&P 500® (SPX) options told me that pension fund sponsors suggested that the options industry should develop indexes that could serve as benchmarks for options-based performance. In 2002 Cboe worked with Professor Robert Whaley to introduce the first major benchmark index that[...]

  • Trader Talk | Trade Ideas | Cboe Benchmark Indexes | Jul 5, 2018, 8:06 AM

    Portfolio Protection with Cboe’s S&P 500 Options: Overview of Basic Concepts

    Portfolio Protection with Cboe’s S&P 500 Options: Overview of Basic Concepts

    Many investors are asking questions about how to protect their investment portfolios in light of a number of developments, including (a) the potential for global trade wars, (2) low interest rates for fixed income investments and high price-earnings ratios for key stocks, and (3) the most severe peak-to-trough drawdowns a decade ago were down 51% for the S&P 500 Index, down 62.7% for the MSCI Emerging Markets Index, and down 81% for the S&P GSCI Index.    Strategies using S&P[...]

  • Jul 3, 2018, 12:54 PM

    Growth in Use of S&P 500 Options at Cboe Over 35 Years

    Growth in Use of S&P 500 Options at Cboe Over 35 Years

    Thirty-five years ago, Cboe revolutionized the financial world with the introduction of options on broad-based stock indexes. On July 1, 1983, Cboe launched S&P 500® (SPX) index options with posted volume of 350 contracts. This year the average daily volume for S&P 500 options is around 1.4 million contracts, as many individual and institutional investors now use the contracts for purposes such as portfolio management, hedging, and income generation. Below are eight charts that related[...]

  • Jun 20, 2018, 1:24 PM

    Combining Short VIX Futures and Long VIX Call Options to Create Cboe’s VPN Index, with Performance over 14 Years

    Combining Short VIX Futures and Long VIX Call Options to Create Cboe’s VPN Index, with Performance over 14 Years

    This year we have seen increased interest in learning more about strategies that sell futures on the Cboe Volatility Index® (VIX®). Strategy benchmark indexes can shed light on how hypothetical strategies have performed in different past market environments. The Cboe Capped VIX Premium Strategy Index (VPN) is a strategy benchmark index that (1) sells VIX futures over a money market account, (2) buys VIX call options, and (3) has a price history that begins in June 2004. As shown in the first[...]

  • Jun 20, 2018, 9:56 AM

    Big Volume for VIX Futures during Global Trading Hours (GTH) on June 19

    Big Volume for VIX Futures during Global Trading Hours (GTH) on June 19

    Estimated volume for futures on the Cboe Volatility Index® (VIX®) during Global Trading Hours (GTH) rose to more than 79,000 contracts on June 19, making the GTH session one of the busiest on record. VIX futures often are used for portfolio management purposes in times of financial market uncertainties, and the financial markets recently have digested news about tariffs and possible trade wars, and a recent headline at wsj.com noted “Markets Begin to Take Threat of Trade War Seriously.” VIX[...]

  • Jun 15, 2018, 1:46 PM

    New Developments MSCI EAFE and EM Options at Cboe -- Tools for Global Portfolio Management

    New Developments MSCI EAFE and EM Options at Cboe -- Tools for Global Portfolio Management

    Investors who want large-sized cash-settled index tools that can help manage global equity risk are exploring use of listed options on the MSCI EAFE® Index (ticker MXEA) and on the MSCI Emerging Markets Index (ticker MXEF). NEW DEVELOPMENTS FOR MXEA AND MXEF OPTIONS Recent new developments include: 1.    NEW LEAD MARKET MAKER. On June 12 Cboe Options Exchange issued a notice stating that the exchange is “pleased to have selected Susquehanna Securities” as the Lead Market[...]

  • Jun 15, 2018, 11:32 AM

    Smoother Returns and Less Severe Drawdowns with VIX Call Options and the VXTH Index

    Smoother Returns and Less Severe Drawdowns with VIX Call Options and the VXTH Index

    Is there more interest in hedging and protecting portfolios in 2018? The May 31st Striking Price column in Barron’s noted -- “Investors Return to Hedging in Volatile Times.  Traders leery of sharp declines after a wild few months in the U.S. equity markets could spring for stock hedges through options.  …  This year, trade tensions and other geopolitical problems appear more likely to sway stocks, in sharp contrast to the placid markets of 2017.  … “ Investors[...]

  • Apr 17, 2018, 9:28 AM

    Cash-Secured Put Writing Webcast on April 18th

    Cash-Secured Put Writing Webcast on April 18th

    At 1:00 pm C.T. on Wednesday, April 18th, three speakers in a Cboe webcast will discuss Accessing the Volatility Risk Premium with Cash-Secured Put Writing. To register for the webcast, please visit - http://bit.ly/Webcst-PutWrite-Apr-2018 . Topics to be discussed include: • Is now a good time to consider option-writing? • Has there been a volatility risk premium that can facilitate enhanced risk-adjusted returns for index options-selling strategies? • Do put-selling strategies have[...]

  • VIX | Apr 3, 2018, 8:38 AM

    Seven Charts for the 25th Anniversary of VIX Index

    Seven Charts for the 25th Anniversary of VIX Index

    This week Cboe is launching a month-long celebration of the 25th anniversary of the introduction of the Cboe Volatility Index® (VIX® Index), which Cboe began publishing in April 1993.  The creation of the VIX Index is one of the most significant innovations of the modern financial marketplace. Over the last 25 years, the VIX Index has grown to become the world’s accepted measure of market volatility, a gauge that is accessed day and night by investors worldwide. Below are seven[...]

  • Mar 28, 2018, 9:46 AM

    Brackets and Defense – Indexes that Bought VIX Calls - LOVOL and VXTH - Had Lower Standard Deviations

    Brackets and Defense – Indexes that Bought VIX Calls - LOVOL and VXTH - Had Lower Standard Deviations

    Over the past two months, there has been increased interest in: (1) portfolio protection strategies (2) learning more about prudent uses of VIX® futures and options, and (3) following brackets. To tie all these topics together, below is a new bracket with 8 benchmark indexes that shows that two indexes that buy VIX call options (LOVOL and VXTH) had the lowest standard deviations over the past decade. DESCRIPTIONS OF FOUR CBOE BENCHMARK INDEXES THAT USE VIX FUTURES AND/OR VIX OPTIONS While the[...]

  • Cboe RMC | Mar 7, 2018, 7:23 AM

    New Report Shows Growth Over 17 Years in Number of Funds Using Options

    New Report Shows Growth Over 17 Years in Number of Funds Using Options

    A newly released report found that the number of SEC regulated funds using options rose from 10 in 2000 to 157 in 2017, and that the aggregate amount of assets in the options-based funds has risen to more than $54 billion. The new study, “Performance Analysis of Option-Based Equity Mutual Funds, CEFs and ETFs: An Update” is now available at www.cboe.com/funds  The new white paper updates the original findings of 2014 study of SEC-registered option-based funds, which focus on broad-based[...]

  • Mar 5, 2018, 7:05 PM

    PUTR PutWrite Index Generated Strong Risk-Adjusted Returns & Less Severe Drawdowns

    PUTR PutWrite Index Generated Strong Risk-Adjusted Returns & Less Severe Drawdowns

    This year we received new questions regarding the performance and downside risk of cash-secured put-writing strategies, and WisdomTree launched an ETF designed to track the Cboe Russell 2000 PutWrite Index (PUTR). In particular, questions have been raised as to what types of returns and drawdowns have been experienced by cash-secured putwrites over the past decade and in February 2018. HIGHER RETURNS SINCE 2001 AND IN FEBRUARY 2018 The line chart below shows that the PUTR had higher returns than[...]

  • Feb 28, 2018, 9:56 AM

    Average Daily Volume during Cboe’s Global Trading Hours (GTH) Tops 90,000

    Average Daily Volume during Cboe’s Global Trading Hours (GTH) Tops 90,000

    Over the years we have heard great interest from many investors in the ability to use SPX and VIX products around-the-clock to help manage their portfolios. The interest has been particularly strong from investors from outside the U.S. time zones. The trading hours for some key Cboe products (SPX options, VIX options, VIX futures, and XBT futures) now include both Regular Trading Hours (from 8:30 a.m. to 3:15 p.m. CT), and Global Trading Hours (GTH) as shown in the table below the three volume charts.[...]

  • Cboe Benchmark Indexes | Feb 16, 2018, 2:18 PM

    Cboe’s PUT Index Generated Lower Volatility, Less Severe Drawdowns, More Income and Better Risk-Adjusted Returns

    Cboe’s PUT Index Generated Lower Volatility, Less Severe Drawdowns, More Income and Better Risk-Adjusted Returns

    The Cboe S&P 500 Putwrite Index (PUT) is designed to reflect a cash-secured put-writing strategy. The PUT strategy is designed to sell a sequence of one-month, at-the-money, S&P 500 (SPX) Index puts and invest cash at one- and three-month Treasury bill rates. The number of puts sold is limited so that the amount held in Treasury Bills can finance the loss from final settlement of the SPX puts. In recent years the PUT Index and the cash-secured put-write strategy have gained more interest[...]

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