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 | Technical Analysis & Charts | VIX | Education | Jan 4, 2016, 2:11 PM

    Eight Charts to Recap 2015 – CNDR Index Rose 10.4%

    Eight Charts to Recap 2015 – CNDR Index Rose 10.4%

    End-of-the-year headlines noted “A Roller Coaster Year Ends with U.S. Markets Mostly Down” (New York Times) and “U.S. Stocks Post Worst Annual Losses Since 2008” (The Wall Street Journal). In this new year on Jan. 4, wsj.com noted “Weaker-than-expected manufacturing data and a falling currency triggered a 7% fall in mainland Chinese stocks that led authorities to halt trading there before the end of the session.” After reading these types of news stories, an inquisitive[...]

  • Market News | Strategy | Dec 9, 2015, 2:00 PM

    Is The Fed’s CCAR Pushing Up the SKEW Index and Driving More Demand for O-T-M SPX Puts?

    Is The Fed’s CCAR Pushing Up the SKEW Index and Driving More Demand for O-T-M SPX Puts?

    In a December 8 Bloomberg news report - “Who's the Bear Driving Up the Price of U.S. Stock Options?” - Joseph Ciolli wrote – “For more than a year, dealers in the U.S. equity derivatives market have noted a widening gap in the price of certain options. If you want to buy a put to protect against losses in the Standard & Poor’s 500 Index, often you’ll pay twice as much as you would for a bullish call betting on gains. New research suggests the divergence is[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Nov 30, 2015, 2:28 AM

    Tim Edwards of SPDJI Covers Unique Performance of VIX-Based Benchmark Indices

    Tim Edwards of SPDJI Covers Unique Performance of VIX-Based Benchmark Indices

    At the First Annual CBOE Risk Management Conference (RMC) Asia in Hong Kong, Tim Edwards, Ph. D., Senior Director of Index Investment Strategy, S&P Dow Jones Indices, delivered a presentation on the design and performance of long, short and dynamic VIX-based benchmark indexes, and covered their utility for longer-term investors and shorter-term traders. While many investors are familiar with the price movements of the spot CBOE Volatility Index® (VIX®), we at CBOE receive many[...]

  • Market News | Trader Talk | Trade Ideas | Nov 28, 2015, 6:40 PM

    New Barron's Article and RMC Presentation on Funds' Use of Options

    New Barron's Article and RMC Presentation on Funds' Use of Options

    Use of options by funds has grown tremendously since the 2002 introduction of the first major benchmark for options-based performance - the CBOE S&P 500 BuyWrite Index (BXM). Below are some recent developments and updates re fund use of options that will be covered at the First Annual CBOE Risk Management Asia Conference, which launches on Nov. 30 in Hong Kong. 1. BARRON'S. On page M9 of the Nov. 30 issue of Barron's, Amey Stone devotes the entire column to a review of covered call funds, and[...]

  • Market News | Nov 24, 2015, 11:44 AM

    Discussion of Volatility of Volatility at RMC in Hong Kong on Dec. 1

    Discussion of Volatility of Volatility at RMC in Hong Kong on Dec. 1

    On December 1st in Hong Kong at the First Annual CBOE Risk Management Conference (RMC) Asia, two expert speakers - William Chan, Equity Derivatives Strategist, Bank of America Merrill Lynch, and Michael Fagan, Chairman, Levitas Capital - will discuss the topic of Volatility of Volatility, and (1) Historical observations and interpretations for "vol-of-vol" surfaces, (2) Trading and hedging applications, depending on client objectives, and (3) A case study approach. Below is some analysis[...]

  • Market News | Nov 18, 2015, 12:31 PM

    More Tools for Managing Global Exposure - Added Expirations for Options on MSCI Indexes

    More Tools for Managing Global Exposure - Added Expirations for Options on MSCI Indexes

    Today CBOE added three new expirations for options on both the MSCI Emerging Markets Index (MXEF) and on the MSCI EAFE Index (MXEA). There now are six expiration dates for options on the MXEF and MXEA indexes – Nov-20-2015 Dec-18-2015 Jan-15-2016 Mar-18-2016 Jun-17-2016 Sep-16-2016 MXEF AND MXEA – PRICES AND IMPLIED VOLATILITY Below are two charts with daily closing values for index prices and the 30-day at-the-money (ATM) implied volatility estimates from Bloomberg. This month, the[...]

  • Market News | Nov 17, 2015, 8:30 AM

    Skew Charts to Prepare for Conference in Hong Kong

    Skew Charts to Prepare for Conference in Hong Kong

    This month I am planning to travel to the First Annual CBOE Risk Management Conference (RMC) Asia, which will be held on November 30 – December 1 at the JW Marriott Hotel, Pacific Place, 88 Queensway, Hong Kong. In my preparations for the trip, I am analyzing the skew charts for a number of option classes, including options on the S&P 500®, the CBOE Volatility Index® (VIX®), and the EEM and FXI ETFs. SKEW CHART FOR SPX OPTIONS As noted in the White Paper on the CBOE SKEW[...]

  • Market News | Nov 12, 2015, 10:13 AM

    Interest Rate Concerns – Chicago Presentations on Nov. 16; TLT ETF is Down 4.7%

    Interest Rate Concerns – Chicago Presentations on Nov. 16; TLT ETF is Down 4.7%

    Interest rate concerns have been in the news this month. Please see the bottom of this Blog for information about interest rate presentations In Chicago this Monday, November 16. A Nov. 4 news story on Bloomberg stated that – “Federal Reserve Chair Janet Yellen and New York Fed President William Dudley both said the central bank could boost interest rates as soon as next month, while Fed Vice Chairman Stanley Fischer voiced confidence that inflation isn’t too far below the central[...]

  • Market News | Nov 3, 2015, 1:00 PM

    First Annual CBOE RMC Asia to Cover Many Topics, including Worldwide Volatility, Options Skew, and Risk Management

    First Annual CBOE RMC Asia to Cover Many Topics, including Worldwide Volatility, Options Skew, and Risk Management

    The CBOE Risk Management Conference is the premier educational forum for users of equity index options and volatility products. Now in its 31st year in the US and 4th year in Europe, CBOE is pleased to bring this experience to Asia. The First Annual CBOE Risk Management Conference Asia will be held on November 30 - December 1 at the JW Marriott Hotel, Pacific Place, 88 Queensway, Hong Kong. TOPICS Topics to be covered include – Primer on Options and Volatility Strategies ​Benchmark Indexes[...]

  • Market News | Nov 3, 2015, 10:17 AM

    VIX Weeklys Options Average Daily Volume Tops 25,000 in First Month of Trading

    VIX Weeklys Options Average Daily Volume Tops 25,000 in First Month of Trading

    Average daily volume for the new VIX® Weeklys options was a strong 25,042 contracts in October, the first month of trading for the products. Prior to last month, the VIX options had expirations only once a month, but now with VIX Weeklys options there usually are VIX options expirations in at least the first four weeks. VIX OPTIONS CHAIN A key feature of the new VIX Weeklys options is that they are in the same options chain as the standard-expiration VIX options.  This screenshot below[...]

  • Market News | Oct 20, 2015, 4:45 PM

    New Cash-Settled Options on Russell 1000 Indexes – Large-cap, Growth and Value

    New Cash-Settled Options on Russell 1000 Indexes – Large-cap, Growth and Value

    (My colleague Rick Rosenthal contributed text to this blog; Rick focuses on CBOE options on FTSE-Russell indexes). On October 20 CBOE launched new cash-settled options on three indexes – Russell 1000® Index (RUI) – is preferred by many investment managers as a broad-based index that represents approximately 92% of the total U.S. equity market. Russell 1000® Growth Index (RLG) - measures the performance of those Russell 1000 companies determined to have higher price-to-book[...]

  • Market News | VIX | Futures | Oct 9, 2015, 10:44 AM

    VIX Weeklys Options Launched – In VIX Options Chain; More Precision and Responsiveness

    VIX Weeklys Options Launched – In VIX Options Chain; More Precision and Responsiveness

    Yesterday (October 8) was the first day of trading for the VIX Weeklys options, with reported trading volume topping 1,000 contracts. VIX OPTIONS CHAIN A key feature of the new VIX Weeklys options is that they are in the same options chain as the standard-expiration VIX options.  This screenshot below from Bloomberg on the morning of October 9 shows that there now are VIX options expirations on Oct 21, Oct. 28, Nov. 4, Nov. 18, and Dec. 16 (in addition, there are VIX options with longer dated[...]

  • Market News | Strategy | Oct 7, 2015, 11:47 AM

    Options on MSCI Emerging Markets Index (MXEF) – Volume of 472 Contracts on Tuesday

    Options on MSCI Emerging Markets Index (MXEF) – Volume of 472 Contracts on Tuesday

    On Tuesday, October 6, the CBOE options on the MSCI Emerging Markets Index (MXEF) had reported volume of 472 contracts (236 call options and 236 put options). Why are several investors expressing more interest in the MXEF options that launched earlier this year? Below are four key reasons I have heard from investors. BIGGER NOTIONAL SIZE FOR CASH-SETTLED INDEX OPTIONS As shown in the chart below, many of the cash-settled index options have notional values that are much bigger than the notional[...]

  • Technical Analysis & Charts | Strategy | Oct 1, 2015, 11:35 AM

    Interest Rate Volatility and TYVIX Discussed at RMC Europe

    Interest Rate Volatility and TYVIX Discussed at RMC Europe

    On Wednesday, September 30, in Geneva, Switzerland at the Fourth Annual CBOE Risk Management Conference (RMC) Europe, two experts – (1) Maneesh Deshpande, Managing Director and Head of Equity Derivatives Strategy, Barclays, and (2) David Rogal, Director and Portfolio Manager, BlackRock-- engaged in a discussion of - Focus on Interest Rate Volatility VIX versus TYVIX CBOE/CBOT 10-year U.S. Treasury Note Volatility Index: Similarities and differences Comparing volatility risk premia in rates[...]

  • Market News | Sep 30, 2015, 4:37 AM

    Presentations in Geneva on Managing Tail Risks

    Presentations in Geneva on Managing Tail Risks

    Seven years ago several major stock indexes and commodity indexes suffered drawdowns of more than 50%, and since then there has been increased investor interest in managing tail risks. On Wednesday, September 30, in Geneva, Switzerland at the Fourth Annual CBOE Risk Management Conference (RMC) Europe, two experts – (1) Julien Halfon, Principal - Financial Strategy Group, Mercer, and (2) Jean-Francois Bacmann, Portfolio Manager and Head of Volatility Strategies, Man AHL—delivered presentations[...]