Rhoads-Russell

Russell Rhoads, CFA

Russell Rhoads, CFA, is Director of Education for the CBOE Options Institute. His career before CBOE included positions at a variety of firms including Highland Capital Management, Caldwell & Orkin Investment Counsel, Balyasny Asset Management, and Millennium Management. He is a financial author and editor having contributed to multiple magazines and edited several books for Wiley publishing. He is the author of six market related books including Trading VIX Derivatives, Option Spread Trading, Trading Weekly Options, and Options Strategies for Advisors and Institutions. He authored material to be included in Level II of the CFA program and material for the CMT designation. In addition to his duties for the CBOE, he is an adjunct instructor at Loyola University and the University of Illinois - Chicago. He is a double graduate of the University of Memphis with a BBA ('92) and an MS ('94) in Finance and also received a Master's Certificate in Financial Engineering from the Illinois Tech in 2003. Russell is currently pursuing a PhD from Oklahoma State University with an expected graduation date of December 2017.

  • Trader Talk | Jun 21, 2017, 12:57 PM

    Sixth Annual CBOE RMC Europe Set for London in September

    Today may be the longest day of the year, but I’m already looking forward to a post-Labor Day event, specifically the 6th Annual European version of CBOE’s Risk Management Conference which will be held September 11th through 13th.   This year we will be visiting a new location just outside London, The Grove Hotel which appears to be an ideal setting for discussing all things derivatives and volatility.  Day one kicks off with a discussion titled New Developments in Options[...]

  • Trader Talk | What's Trading | Jun 19, 2017, 3:44 PM

    What's Trading Today? FB Bull Put Spread...

    Facebook Bull Put Spread With FB trading at 151.95 someone sold 200 FB Jun 30th 152.50 Puts for 2.44 and bought the FB Jun 30th 146.00 Puts for 0.60 and a net credit of 1.84.  A quick summary appears in the video below. At expiration the net result with FB above 152.50 would be a profit of 1.84, equal to the credit taken in on the trade.  The worst case scenario is a loss of 4.66 and this trade has a break-even of 150.66.    Other trades of note: With Bank of America (BAC)[...]

  • Market News | Trader Talk | Jun 19, 2017, 10:03 AM

    FTSE Russell Reconstitution Completed this Friday

    This is a big week for the FTSE Russell suite of indexes.  On Friday, a large number of indexes will undergo what is referred to as the annual reconstitution.  Specifically, the final phase of this process will occur on the market close Friday as stocks move into or out of indexes.  The index we care most about at CBOE is the Russell 2000 which is the standard benchmark index for small cap managers in the US.  Also, RUT options are the 3rd most actively traded broad based index[...]

  • VIX | Trader Talk | Trade Ideas | Jun 17, 2017, 2:09 PM

    Weekend Review of VIX Futures and Options - 6/12/2017 - 6/16/2017

    VIX gave volatility bulls a little hope on Monday rising to the highest intra-day level since VIX was receding from the news flow that followed the firing of Comey by Donald Trump in the middle of May.  However, as is the norm, VIX dropped and worked lower with the curve following in suit. As Monday was the only day of real strength for VIX and the June VIX futures.  One trader took advantage of that by selling an out of the money call spread.  Late Monday as VIX was near 11.65 and[...]

  • VIX | Trader Talk | Trade Ideas | Jun 17, 2017, 2:01 PM

    Weekend Review of Volatility Indexes and ETPs - 6/12/2017 - 6/16/2017

    As the week came to a close VXST which measures 9-day volatility expectations took a dive.  Hence the big drop on the left side of the VXST – VIX – VXV – VXMT diagram below.  TYVIX finished the week below 4.00 which was a first for 2017, but not outside of the long term historical range.  I checked the market expectations for the next FOMC meeting in late July and right now we have a 100% chance of nothing happening.  That much certainty probably justifies[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | Jun 17, 2017, 1:56 PM

    Weekend Review of Russell 2000 Options and Volatility - 6/12/2017 - 6/16/2017

    Small cap stocks lost some of the recently gained ground relative to large cap stocks last week.   The Russell 2000 (RUT) was down over 1% while the large cap focused Russell 1000 (RUI) was up slightly.  The spread of RUI to RUT out performance for 2017 has now widened to almost 5%. Despite the tough week for small cap stocks the CBOE Russell 2000 Volatility Index (RVX) finished Friday at a 2017 low.  This lower relative level for RVX pushed the RVX to VIX ratio to the lowest[...]

  • VIX | Trader Talk | Trade Ideas | Jun 10, 2017, 6:44 PM

    Weekend Review of VIX Options and Futures - 6/5/2017 - 6/9/2017

    VIX was higher by about 10% last week, but that did not have much of an impact on the rest of the term structure.  The futures were mixed which can be attributed to just how steep the VIX curve was going into the week.  Before things turned to the upside on Friday we experienced the lowest level for VIX since 1993.  The table below ranks the lowest inter-day lows for VIX since 1990.  Note Friday ranks 6th and 4 of the 10 on the list occurred this year.  A couple of bullish[...]

  • VIX | Trader Talk | Trade Ideas | Jun 10, 2017, 6:39 PM

    Weekend Review of Volatility Indexes and ETPs - 6/5/2017 - 6/9/2017

    That little bump in VXST that shows up on the far left side of the diagram below can be attributed to Friday afternoon activity.  VXST rose 0.75 Friday while VIX was up 0.54.  Shorter dated SPX option pricing is used to calculate VXST than VIX.  It may be the weakness Friday afternoon in large cap tech stocks may have traders worrying about the direction of the stock market over the short term.  Several things pop out at me on the table below.  VMAX had a nice week rising[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jun 10, 2017, 6:31 PM

    Weekend Review of Russell 2000 Options and Volatility - 6/5/2017 - 6/9/2017

    Small cap stocks prevailed last week as the Russell 2000 (RUT) gained over 1% while the Russell 1000 (RUI) was lower by about 1/3 of 1%.  Large cap stocks still hold a lead over small caps in 2017, but the Russell 2000 has kept pace with the Russell 1000 since the end of the first quarter so all the large cap outperformance may be attributed to the first three months of 2017.  On the volatility front VIX and the CBOE Russell 2000 Volatility Index (RVX) rose last week, with the relative[...]

  • Market News | Trader Talk | Trade Ideas | Jun 4, 2017, 12:57 PM

    Weekend Review of Russell 2000 Options and Volatility - 5/30/2017 - 6/2/2017

    Small caps had a nice week with the Russell 2000 (RUT) rising 1.67% while the Russell 1000 (RUI) was up 1.01%.  The large cap lead narrowed a bit, but the RUT still lags RUI by just over 5% year to date.  Continued low levels for VIX dominate the CBOE Russell 2000 (RVX) to VIX ratio which remains at historically high levels.  VIX under 10.00 and RVX over 15.00 results in a ratio in the mid- 50% range to end the week.   Mid-day Wednesday, with RUT around 1360 a bullish trade[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jun 3, 2017, 8:31 PM

    Weekend Review of Volatility Indexes and ETPs - 5/30/2017 - 6/2/2017

    The VXST – VIX – VXV – VXMT week over week curve change only has one noticeable move.  VXST was up nicely last week, but we are going to attribute the whole move to the 3 day weekend effect and say the curve was basically unchanged.  The long volatility funds drifted down and short volatility ruled the week with SVXY rising 2% and relative newcomer VMIN gaining 2.2% last week.  Worth noting below is VVIX which remains above 80.00 despite VIX closing for the second[...]

  • VIX | Trader Talk | Trade Ideas | Jun 3, 2017, 7:40 PM

    Weekend Review of VIX Options and Futures - 5/30/2017 - 6/2/2017

    VIX dropped slightly as the S&P 500 powered to more all-time highs last week.  The slight drop in VIX can be attributed to the already extremely low level that it closed last week.  The futures all dropped a little as well, which may be more about moving along in time than lower volatility expectations.  VIX closed under 10.00 more times this year than any other year in history.  The average for VIX is historically low as well in 2017.  So, why is the short VIX trade[...]

  • Market News | May 31, 2017, 8:14 PM

    June is Reconstruction Time for FTSE Russell Indexes

    When Memorial Day comes around most people start to think about their summer plans or how they are going to entertain their children until school starts back.  Of course I’m not like most people and when we enter June my thoughts are all about the Russell Reconstitution process.  Before joining CBOE I would monitor the reconstitution process and try to trade around stocks that were going to be added or deleted from the Russell 2000. Now as an employee of CBOE I monitor the process[...]

  • Earnings | May 30, 2017, 6:23 PM

    Earnings Week of 5/30/2017 - 6/2/2017

    It is a short week, but we still have a few companies reporting.  The stocks below have Weeklys available for trading and the numbers represent the last 12 quarters of one day price reactions to their announcement.  As always double check the dates as none have been confirmed.

  • VIX | Trader Talk | Trade Ideas | May 28, 2017, 9:36 AM

    Weekend Review of Volatility Indexes and ETPs - 5/22/2017 - 5/26/2017

    VXST closed Friday at an all-time low of 7.60 which sounds impressive until you hear that for VXST the history we have to work with only goes back to 2011.  I am going to make a bold prediction and say that VXST will move higher when the market reopens on Tuesday.  Read that as sarcasm as VXST has never followed a three-day weekend without moving higher.  After having a short period of upward movement, the VIX related funds gave back performance and then some last week.  The[...]