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 | Strategy | Cboe Benchmark Indexes | Jul 1, 2016, 3:02 PM

    Less Left-Tail Risk for BFLY Index - Blog #2 on 30-Year Price History

    Less Left-Tail Risk for BFLY Index - Blog #2 on 30-Year Price History

    This is the second in a series of nine blogs to be published in early July at the CBOE Options Hub on nine CBOE benchmark indexes which have price histories that begin on June 30, 1986, three decades ago.] Over the past three decades the CBOE S&P 500 Iron Butterfly Index (BFLY) demonstrated the ability to help manage drawdowns and left tail risk. The BFLY Index is designed to track the performance of a hypothetical option trading strategy that 1) sells a rolling monthly at-the-money (ATM) S&P[...]

  • Market News | Cboe Benchmark Indexes | Jul 1, 2016, 12:58 PM

    Strong Risk-Adjusted Returns for PUT Index – Blog #1 on 30-Year Price History

    Strong Risk-Adjusted Returns for PUT Index – Blog #1 on 30-Year Price History

    [This is the first in a series of nine blogs to be published in early July at the CBOE Options Hub on nine CBOE benchmark indexes which have price histories that begin on June 30, 1986, three decades ago.] The CBOE S&P 500 PutWrite Index (PUT) – is an award-winning benchmark index for a strategy that has grown in popularity over the past decade; arguably is the world’s best-known and leading gauge of the cash-secured put-writing strategy; has facilitated increased use of cash-secured[...]

  • Education | Jun 30, 2016, 4:43 PM

    Mid-Year Update on Volatility Indexes, and Thirty Years of Price History for Benchmark Indexes

    Mid-Year Update on Volatility Indexes, and Thirty Years of Price History for Benchmark Indexes

    Here are mid-year updates on benchmark indexes and volatility indexes at CBOE – (1) Nine CBOE benchmark indexes all have had less volatility than key stock indexes over the last three decades; (2) The highest daily closing values for select volatility indexes so far this year were 28.14 on Feb. 11 for the VIX Index, and 125.13 on June 24 for the VVIX Index. The CBOE/CME FX British Pound Volatility Index (BPVIX) rose prior to the Brexit referendum, and its daily closing values had a big range[...]

  • Market News | Jun 29, 2016, 2:42 PM

    CBOE SKEW Index Rose to 153.66 on June 28, Its All-Time High

    CBOE SKEW Index Rose to 153.66 on June 28, Its All-Time High

    On June 28 the CBOE SKEW Index rose to 153.66, the all-time high for its price history that began in January 1990. Here are the relatively high values for the CBOE SKEW Index in recent days -- 15-Jun                   140.91 16-Jun                   142.50 17-Jun                   137.94 20-Jun               [...]

  • Education | Jun 27, 2016, 11:24 AM

    Left Tail Risk for CBOE Benchmark Indexes: Nine Histograms

    Left Tail Risk for CBOE Benchmark Indexes: Nine Histograms

    Volatility in the many worldwide markets shot up last week, which has left investors looking for the better ways to manage risk. Some investors still have the misconception that all options strategies are more risky than common stock and bond strategies, but the histogram analysis below shows that nine CBOE benchmark indexes have less left tail risk than the S&P 500® total return index since mid-1986. A total of 9 histograms were created, directly comparing the monthly returns of the PUT,[...]

  • VIX | Futures | Jun 24, 2016, 11:57 AM

    Skew Charts Show Higher Implied Volatility for O-T-M Puts on SPX, RUT, EFA and FXB

    Skew Charts Show Higher Implied Volatility for O-T-M Puts on SPX, RUT, EFA and FXB

    After the results of the Brexit referendum were announced , the values of several volatility indexes at CBOE shot up, indicating that overall implied volatility had increased for many securities worldwide. A key issue for some cautious investors who want to hedge is – what are the implied volatilities for various out-of-the-money (O-T-M) put options that can be used to hedge my portfolio?   Below are Livevol skew charts for four key securities – SPX, RUT, EFA, and FXB –[...]

  • VIX | Futures | Jun 24, 2016, 10:46 AM

    14 Volatility Indexes (including VXEFA, JYVIX & VIX®) Rise by More Than 10% Friday Morning

    14 Volatility Indexes (including VXEFA, JYVIX & VIX®) Rise by More Than 10% Friday Morning

    After the news of the results on the Brexit referendum were disclosed, implied volatility for many key securities worldwide rose, and the values of 14 volatility indexes at CBOE – (tickers: VXEFA, JYVIX, EVZ, VXO, VIX®, VXN, VXGS, VXXLE, VXD, EUVIX, VXIBM, VXST, VXGOG, and RVX) – rose by more than 10% by 9 am CT on Friday, June 23. To see updates on price movements for 29 volatility indexes, visit www.cboe.com/volatility. FUTURES ON VIX® INDEX Reported trading volume in VIX[...]

  • Market News | Education | Futures | Jun 15, 2016, 3:28 PM

    SPXW Wednesday-Expiring Weekly Options Volume Grows to More Than 100,000 Per Day

    SPXW Wednesday-Expiring Weekly Options Volume Grows to More Than 100,000 Per Day

    On February 23, 2016, CBOE launched trading of weekly options on the S&P 500® Index which expire on Wednesdays. The average daily volume for SPXW Wednesday-Expiring Weekly Options grew from 74,114 in May, to 105,768 so far this month (through June 14). POTENTIAL BENEFITS – PRESS RELEASE CBOE’s February press release noted – "We are pleased to further expand our SPX product complex with the introduction of SPX Weeklys with Wednesday expirations," said CBOE Holdings[...]

  • Market News | Education | Trade Ideas | Jun 9, 2016, 3:17 PM

    Will the China A-Shares Be Added to the MSCI Emerging Markets Index on June 14?

    Will the China A-Shares Be Added to the MSCI Emerging Markets Index on June 14?

    A key topic for global investors today is whether Chinese A-Shares will be added to the popular MSCI Emerging Markets Index on June 14. A recent news story in the Wall Street Journal noted that -- “MSCI is set to decide this month whether to include in its benchmarks the shares of companies listed on China’s domestic exchanges. U.S. options traders are ramping up bets on the outcome using the biggest exchange-traded fund linked to China. If the MSCI decides to include the stocks, known[...]

  • Market News | VIX | Trader Talk | Jun 8, 2016, 3:11 PM

    All-Time Record High Open Interest for VIX Futures – 501,835 on June 7

    All-Time Record High Open Interest for VIX Futures – 501,835 on June 7

    Futures on the CBOE Volatility Index® (VIX®), which launched in 2004, experienced some milestones regarding open interest in recent days – *   VIX futures open interest surpassed 500,000 for the first time on June 6; *   VIX Futures open interest hit a new all-time record high of 501,835 on June 7; *   VIX Futures open interest is up 98.7% year-to-date (through June 7). VIX FUTURES VOLUME DURING EUROPEAN HOURS VIX futures are available for trading more[...]

  • VIX | Education | Futures | Strategy | Jun 7, 2016, 10:35 AM

    BPVIX Index Hits Highest Level Since 2009, as Investors Manage Brexit Risk

    BPVIX Index Hits Highest Level Since 2009, as Investors Manage Brexit Risk

    On Monday the CBOE/CME FX British Pound Volatility Index (BPVIX) closed at 22.59, its highest daily close since March 2009, and the BPVIX Index has risen 161.8% so far this year (through June 6). A number of news articles have noted that the implied volatility for British Pound has risen during the past month because of concern about the upcoming June 23 Brexit referendum. Recent headlines for news stories included (1) “Pound Falls, Volatility Jumps as Polls Show Momentum for Brexit”[...]

  • VIX | Futures | May 6, 2016, 10:30 AM

    Record Volume in April for SPX Wednesday-Expiring Weeklys Options

    Record Volume in April for SPX Wednesday-Expiring Weeklys Options

    In February CBOE launched S&P 500® Index (SPX) Wednesday-expiring WeeklysSM options. Last month the average daily volume for the "Wednesday Weeklys" rose to a record high of 72,957 contracts. In the February press release CBOE Holdings CEO Edward T. Tilly said – "We are pleased to further expand our SPX product complex with the introduction of SPX Weeklys with Wednesday expirations. Wednesday Weeklys, in addition to end-of-the-week expirations, will increase opportunities[...]

  • Market News | Education | May 3, 2016, 10:51 AM

    Morningstar Places Dozens of Funds in New “Option Writing” Category

    Morningstar Places Dozens of Funds in New “Option Writing” Category

    In a key development during the past week, Morningstar placed dozens of mutual funds in its new Option Writing category in its U.S Retail Category system. LESS VOLATILITY FOR BENCHMARK INDEXES THAT WRITE SPX OPTIONS Morningstar’s Category Index for the new Option Writing category is the CBOE S&P 500 BuyWrite Index (BXM). There are some people who still wonder if use of options usually adds to volatility, and if option writing strategies always have lower returns than equity indexes[...]

  • Market News | Education | Apr 27, 2016, 4:22 PM

    Morningstar Is Adding New “Option Writing” Category on April 29

    Morningstar Is Adding New “Option Writing” Category on April 29

    In my opinion, the launch of a new Option Writing category by Morningstar this week has tremendous potential to boost long-term interest in and acceptance of options-based strategies by portfolio managers, financial advisers, and consultants. On April 29, 2016, Morningstar is adding a new Option Writing category to its U.S Retail Category system, and the Category Index is the CBOE S&P 500 BuyWrite Index (BXM). BACKGROUND ON DEVELOPMENTS IN PAST YEARS Over the past decade I have spoken to numerous[...]

  • Education | Apr 27, 2016, 9:16 AM

    First Trades in New CBOE FLEX Index Options with Asian-Style Settlement

    First Trades in New CBOE FLEX Index Options with Asian-Style Settlement

    Last week the first couple of trades were executed in the new CBOE FLEX® index options with Asian-style settlement. Open interest for the new CBOE Asian-style FLEX options has grown to more than 680 contracts, representing notional value of more than $6 million.. A recent article at EQDerivatives.com noted that – “An insurance firm has traded the first listed Asia-style flexible exchange option, which were listed on the Chicago Board Options Exchange last month. Agency only broker[...]