Rhoads-Russell

Russell Rhoads, CFA

Russell Rhoads, CFA, is Director, Product Advancement, Global Derivatives at Cboe Global Markets. His career before joining 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 at Cboe, he is an adjunct instructor at Loyola University. 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 in the Summer of 2018.

  • Jan 29, 2017, 11:59 AM

    Weekend Review of VIX Futures and Options 1/23 - 1/27

    Weekend Review of VIX Futures and Options 1/23 - 1/27

    VIX fell to multi-year lows last week which reflects quantitatively a lack of concern in the equity markets.  What I found interesting with respect to the numbers below was how the February future lost more than spot VIX last week.  This sort of price behavior is usually associated with expiration rapidly approaching or little in the way of economic events on the horizon.  That’s not the case here as February contracts expire in a couple of weeks and the coming week brings us[...]

  • Jan 27, 2017, 2:05 PM

    Earnings Week of 1/30 - 2/3

    Earnings Week of 1/30 - 2/3

    We have a full earnings calendar next week.   As always the data below is based on the last three years of earnings results unless the ticker is in italics.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.  Finally, double check the earnings dates as not all were confirmed.

  • Jan 22, 2017, 7:17 AM

    Weekend Review of Russell 2000 Options and Volatility - 1/17 - 1/20

    Weekend Review of Russell 2000 Options and Volatility - 1/17 - 1/20

    Large cap stocks ruled the week last week, at least in relative terms as the Russell 1000 (RUI) only gave up 0.18% while the Russell 2000 (RUT) was down 1.47%.  Without checking I’m pretty sure that’s the biggest large cap out performance since the election.  Small cap volatility remains elevated relative to large cap volatility as indicated by the CBOE Russell 2000 Volatility Index (RVX) levels relative to VIX.  I left 2016 on this chart because I don’t think the[...]

  • Jan 21, 2017, 4:40 PM

    Weekend Review of Volatility Indexes and ETPs - 1/17 - 1/20

    Weekend Review of Volatility Indexes and ETPs - 1/17 - 1/20

    The four volatility indexes based on S&P 500 option pricing were mixed on a week over week basis.  VXST and VIX rose while VXV and VXMT dropped slightly.  The result was a slight week over week twist in the curve below.  Note a couple of additions to the table below, VMAX and VMIN which have a different construction than VXX and XIV will now be monitored on a week over week basis.  Both have a shorter-term outlook than the standard VIX related funds.  The big standout[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jan 21, 2017, 1:58 PM

    Weekend Review of VIX Futures and Options - 1/17 - 1/21

    Weekend Review of VIX Futures and Options - 1/17 - 1/21

    The S&P 500 dropped a bit and VIX rose some last week.  For all the fear and uncertainty that has been in the air around the beginning of the Trump era in Washington DC, the markets have remained calm and not done a whole lot in the past few weeks.   We did get January VIX options settlement last week with VRO coming in at 12.42.  This is something I’m watching closely as I got a twitter question awhile back with respect to streaks where standard VIX settlement had[...]

  • Market News | Trader Talk | Jan 19, 2017, 4:32 PM

    Earnings Week of 1/23 - 1/27

    Earnings Week of 1/23 - 1/27

    Earnings season is in full swing this week with something for everyone on the list below.  As always the data below is based on the last three years of earnings results unless the ticker is in italics.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.  Finally, double check the earnings dates as not all were confirmed.

  • Market News | VIX | Jan 18, 2017, 6:17 PM

    Volatility ETF Twice Nominated for 2016 ETF.com Awards

    Volatility ETF Twice Nominated for 2016 ETF.com Awards

    We all have our morning rituals and one of mine involves checking the daily ETF.Com email I receive at CBOE.  The top story was the nominations for the annual ETF.Com awards ceremony which is scheduled for March 30th in New York.  I went through the list of nominees highlighting partners of CBOE and was delighted to see the REX VolMAXX Long VIX Weekly Futures Strategy ETF (Ticker: VMAX) recognized with a nomination in two categories.  VMAX has been nominated for both Most Innovative[...]

  • Market News | Trader Talk | Trade Ideas | Jan 16, 2017, 9:08 AM

    Block Trade Analysis - XLI Bull Put Spreads from Friday

    Block Trade Analysis - XLI Bull Put Spreads from Friday

    Since the election of Donald Trump the stock market has been on a bullish run.  One sector that may benefit from the new administration is the industrial sector, whether that is due to an increase in infrastructure spending or through an increase in domestic manufacturing.  On Friday, last week there were a couple of bullish option trades that came into the Industrial Selector Sector SPDR Fund (XLI) ETF option market worth taking a look at. Before discussing these two trades I wanted to[...]

  • VIX | Election & VIX | Jan 16, 2017, 6:53 AM

    Contrasting SPX and VIX - MLK Weekend 2016 and 2017

    Contrasting SPX and VIX - MLK Weekend 2016 and 2017

    2016 was a year lots of people would like to forget for a variety of reasons.  Personally, I had a great year and didn’t know any celebrities who will be celebrated posthumously at the various spring award shows.  If we go back 52 weeks to MLK weekend in 2016 the markets were about as opposite as they could be relative to where we are today. As a quick reminder, many market participants were nervous going into 2016, we had just experienced our first interest rate hike in years and[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jan 15, 2017, 8:33 AM

    Weekend Review of Volatility Indexes and ETPs - 1/9 - 1/13

    Weekend Review of Volatility Indexes and ETPs - 1/9 -  1/13

    There are two lines below although it may appear that there is only a purple line for parts of the VXST – VIX – VXV – VXMT curve.  In a round about way I’m saying not a lot happened in the world of S&P 500 option volatility last week. What really stands out on the table below is the price action of VVIX which rose over 12 points to finish the week over 90.  There were large buyers of February VIX call options last week which contributed to the rise[...]

  • VIX | Trader Talk | Futures | Trade Ideas | Jan 14, 2017, 5:43 PM

    Weekend Review of VIX Futures and Options - 1/9 - 1/13

    Weekend Review of VIX Futures and Options - 1/9 - 1/13

    Last week VIX managed to finish the day below the 2016 closing low (11.27) twice.  If it were only Friday’s close I’d throw an asterisk in there for the three-day weekend effect, but there’s no holiday excuse for the Wednesday close of 11.26. This past week they (whoever ‘they’ are) couldn’t get enough of February VIX Calls.  On Friday, paper bought over 60,000 VIX Feb 21 Calls for 0.49.  On Thursday, there were three block trades of[...]

  • Weekend Review of Russell 2000 Options and Volatility - 1/9 - 1/13

    Weekend Review of Russell 2000 Options and Volatility - 1/9 - 1/13

    It was a quiet week for the markets with a lack of economic data, the earnings calendar being light (that changes next week) and our president elect speaking to the press but not making statements to impact the equity markets too much.  The result was a 0.35% gain for the Russell 2000 (RUT) and a drop of 0.04% for large cap stocks as represented by the Russell 1000 (RUI). The next chart is a regular feature in this space.  I decided since the premium of the CBOE Russell 2000[...]

  • Market News | Jan 12, 2017, 3:59 PM

    Earnings Week of 1/17 - 1/20

    Earnings Week of 1/17 - 1/20

    It's a holiday shortened week, but it's also a week where earnings season starts to kick into high gear.  As always the data below is based on the last three years of earnings results unless the ticker is in italics.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.  Finally, double check the earnings dates as not all were confirmed.

  • Market News | Jan 10, 2017, 4:21 PM

    33rd Annual CBOE RMC Set for March 8 - 10

    33rd Annual CBOE RMC Set for March 8 - 10

    As we turn to a New Year, we all look forward to certain things.  For me, near the top of that list is the spring edition of CBOE’s Risk Management Conference (CBOE RMC).  We now have three versions of RMC with the US version taking place in a warm weather venue each spring for the past 32 years.  The 33rd Annual CBOE RMC will be held in Dana Point, California at the Monarch Beach Resort from March 8th to March 10th.  Although historical information is never a guarantee[...]

  • Market News | 2016 Recap | Jan 10, 2017, 12:00 PM

    Five Volatility Market Lessons from 2016

    Five Volatility Market Lessons from 2016

    To be successful in any field we all need to keep learning.  My job involves staying on top of all things index and volatility related which means I am always gaining new insights about the markets.  Looking back at 2016, VIX settled into lower levels after starting the year hitting the mid-20’s as the stock market sold off.  Despite the relatively tame behavior from VIX, there were some lessons to be learned last year. Number 1 – Non-Fundamental Volatility Spikes Before[...]