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.

  • 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[...]

  • VIX | Apr 25, 2016, 2:32 PM

    Open Interest for VIX Call Options Recently Topped 7.5 Million Contracts

    Open Interest for VIX Call Options Recently Topped 7.5 Million Contracts

    Last week the open interest for call options on the CBOE Volatility Index® (VIX®) surged to more than 7.5 million contacts (see chart below). In a recent article at Bloomberg.com, reporters Joseph Ciolli and Inyoung Hwang wrote – “Going long market turbulence has surged in popularity in the last nine weeks, with investors sending an unprecedented $3.2 billion into securities that reap gains from wider price swings. That pushed shares outstanding on exchange-traded notes[...]

  • Market News | Education | Futures | Apr 20, 2016, 10:29 AM

    Continued Use of Listed Options Is Permitted by Final DOL Fiduciary Rules

    Continued Use of Listed Options Is Permitted by Final DOL Fiduciary Rules

    Here is an update on the status of fiduciary rules recently finalized by the Department of Labor (DOL).  PROPOSED DOL REGS IN APRIL 2015 The DOL proposed on April 14, 2015 sweeping new regulations governing retirement accounts and IRAs which would exclude listed options and futures as permissible investments. FINAL DOL REGS IN APRIL 2016 On April 6, 2016, the DOL released its final Conflict of Interest Rule and related exemptions, which are available at http://www.dol.gov/ebsa/regs/conflictsofinterest.html. The[...]

  • Strategy | Apr 15, 2016, 3:49 PM

    Three Studies Show Strong Risk-adjusted Returns for Put-Writing Indexes

    Three Studies Show Strong Risk-adjusted Returns for Put-Writing Indexes

    In 2011 I received an email from an experienced options manager that stated -- “The introduction of BXM by the CBOE and the exchange’s continued support has created a new covered call asset class that fits well into the move to lower volatility equity products.  BXM gives us a much better accepted benchmark than is available in the Low Vol equity world.  We have been getting a lot interest, RFP’s etc. as consultants and institutional investors accept the notion of lower[...]

  • Market News | Apr 13, 2016, 4:51 PM

    CBOE Introduces First in a Series of Indexes Designed to Target Investment Outcomes

    CBOE Introduces First in a Series of Indexes Designed to Target Investment Outcomes

    CHICAGO, IL -- April 13, 2016 -- Chicago Board Options Exchangeâ (CBOEâ) today announced it has created a series of 13 “Buffer Protect Indexes,” the first in a family of options-based strategy performance benchmarks that are designed to target the outcomes of specific investment strategies. The CBOE S&P 500 Buffer Protect Indexes measure the performance of a hypothetical portfolio of S&P 500® Index (SPX) FLexible EXchange® (FLEX) options designed to provide[...]

  • Market News | Education | Mar 14, 2016, 3:43 PM

    March 22 Panel at CBOE on Accessing the Volatility Risk Premium with Cash-Secured Put Writing

    March 22 Panel at CBOE on Accessing the Volatility Risk Premium with Cash-Secured Put Writing

    Presentations and a panel discussion on the topic of - Accessing the Volatility Risk Premium with Cash-Secured Put Writing will occur on Tuesday March 22, 2016 from 5:00 PM to 6:45 PM at Chicago Board Options Exchange (CBOE), 400 So. La Salle St., (enter on Van Buren Street), Chicago, 60605   http://bit.ly/CAIA-March22 ISSUES Issues to be discussed include – Has there been a Volatility Risk Premium that can facilitate enhanced risk-adjusted returns for index options-selling[...]

  • Market News | Mar 14, 2016, 2:38 PM

    Bracketology – Strong Returns for BXMD and CMBO Indexes Since Mid-1986

    Bracketology – Strong Returns for BXMD and CMBO Indexes Since Mid-1986

    While much of this month’s bracketology focus is on basketball tournaments, the chart below shows investment returns for eight benchmark indexes since mid-1986. The chart includes four benchmark indexes (introduced in 2015) that invest in S&P 500® (SPX) options.  In the chart the top two indexes in terms of annualized returns were the CBOE S&P 500 30-Delta BuyWrite Index (BXMD) and the CBOE S&P 500 Covered Combo Index (CMBO). DECCRIPTIONS FOR FOUR BENCHMARK INDEXES THAT[...]

  • Market News | Mar 11, 2016, 4:13 PM

    Open Interest for Options on MSCI Emerging Markets Index (MXEF) Grows to 9,855 Contracts

    Open Interest for Options on MSCI Emerging Markets Index (MXEF) Grows to 9,855 Contracts

    Open interest for options on the MSCI Emerging Markets Index (MXEF)<http://www.cboe.com/micro/msci/mxef/default.aspx> grew from 98 contracts in mid-January to 9,855 contracts yesterday. Over the past year several institutional investors have expressed to me their interest in the potential for a liquid MXEF options contract, particularly because the MXEF options contract is cash-settled and has a notional size that is about 24 times larger than options on the EEM ETF. KEY FEATURES OF MXEF OPTIONS Key[...]

  • Education | Strategy | Feb 23, 2016, 4:33 PM

    New Study by Black and Szado Analyzes Six CBOE Benchmarks – BXM, PUT, BFLY, BXMD, CMBO, CNDR – Since 1986

    New Study by Black and Szado Analyzes Six CBOE Benchmarks – BXM, PUT, BFLY, BXMD, CMBO, CNDR – Since 1986

    A new study examines six benchmark indexes that write S&P 500® (SPX) index options, comparing their performances with those of traditional stock, bond and commodity benchmark indexes. The study, “Performance Analysis of CBOE S&P 500 Options-Selling Indices,” is the first comprehensive study that examines the performance of options-strategy benchmark indexes that incorporate iron condor and iron butterfly strategies. Commissioned by CBOE and co-authored by Keith Black, Ph.D.,[...]

  • Market News | Feb 22, 2016, 3:29 PM

    SPX Wednesday Weeklys Begin Trading on Feb. 23

    SPX Wednesday Weeklys Begin Trading on Feb. 23

    Beginning Tuesday, February 23, CBOE will list for trading weekly options on the S&P 500 Index which expire on Wednesdays (“SPX Wednesday Weeklys”). Like other SPXW options, SPX Wednesday Weeklys are series of the SPX option class. Key features of the SPX Wednesday Weeklys include – SPX Wednesday Weeklys may expire on any Wednesday of the month, other than a Wednesday that coincides with an End-of-Month (“EOM”) expiration date. SPX Wednesday Weeklys are PM-settled;[...]

  • Market News | Feb 22, 2016, 2:20 PM

    Open Interest for Options on MSCI Emerging Markets Index (MXEF) Grows to 6,229 Contracts

    Open Interest for Options on MSCI Emerging Markets Index (MXEF) Grows to 6,229 Contracts

    Open interest for options on the MSCI Emerging Markets Index (MXEF) recently rose above 6,200 contacts for the first time. Over the past month the MXEF options open interest grew from 98 to 6,229 contracts. Over the past year several institutional investors have expressed to me their interest in the potential for a liquid MXEF options contract, particularly because the MXEF options contract is cash-settled and has a notional size that is about 24 times larger than options on the EEM ETF. VOLATILITY[...]