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.

  • Trader Talk | Education | Oct 5, 2016, 7:02 AM

    59 Years Ago the Russians Won the Space Race - Why Being First is Not Being Best

    59 Years Ago the Russians Won the Space Race - Why Being First is Not Being Best

    Fifty-nine years ago today everyone in the United States was a bit freaked out.  It had nothing to do with the stock market or economy.  It was due to something unseen that was floating over our heads.  The Russians had launched Sputnik, the first artificial satellite to orbit earth.  The Russians had beaten the United States to being the first in space.  The reaction in the US was a combination of fear (does this mean we are behind the Russians militarily as well?) to let’s[...]

  • VIX | Oct 4, 2016, 9:58 AM

    CBOE and RCM Alternatives Event on VIX Futures Trading

    CBOE and RCM Alternatives Event on VIX Futures Trading

    The CBOE Options Institute is teaming up with RCM Alternatives on October 13th from 4:30 to 8:00 for a discussion and expert panel on VIX Futures and Options trading.  The even will be held at CBOE with a reception following in the Member's Lounge that overlooks the trading floor. The event will cover the current landscape and forecast for the VIX, misconceptions and facts about the structure of VIX futures, and the evolution of how this “fear gauge” has evolved as a trading instrument. After[...]

  • Market News | Trader Talk | Trade Ideas | Oct 3, 2016, 11:25 AM

    Earnings Week of 10/3 - 10/7

    Earnings Week of 10/3 - 10/7

    It's the quiet before the storm this week and third quarter earnings start hitting 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.

  • VIX | Oct 3, 2016, 9:59 AM

    How Would a Cubs World Series Victory Impact VIX?

    How Would a Cubs World Series Victory Impact VIX?

    The baseball regular season came to an end yesterday and the Chicago Cubs are positioned to make a historic run that most expect will end in a World Series victory.  See what happens when a trader takes control of a team.... Since many people thought this would never happen, it may also be thought of as a black swan event and we all know that black swans have a dramatic impact on market volatility and show up in an elevated level for the Chicago Board Options Exchange Volatility Index, commonly[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Oct 2, 2016, 8:39 AM

    Weekend Review - VIX Options and Futures - 9/26 - 9/30

    Weekend Review - VIX Options and Futures - 9/26 - 9/30

    The VIX curve did The Twist (cue Chuck Berry) as spot VIX rose 8% and the front month October contract was up by just over 1%.  Beyond the front month all things were red. The highest closing level for VIX last week came on Monday with the spot index finishing the day at 14.50.  One trader had an expectation that this move up would very short lived and decided to sell a call spread with VIX Weeklys Options that expired on the open this past Wednesday.  Just a few minutes[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Oct 1, 2016, 12:53 PM

    Weekend Review - Russell 2000 Options and Volatility - 9/26 - 9/30

    Weekend Review - Russell 2000 Options and Volatility - 9/26 - 9/30

    For the first time in a while the Russell 1000 was higher while the Russell 2000 lost value last week.  The numbers were slight with RUI up 0.15% and RUT down 0.26%.  For the year RUT still maintains a nice lead with three months to go in 2016. The CBOE Russell 2000 Volatility Index maintains a high spread relative to VIX continuing to hover around that 40% level.   On Monday the Russell 2000 came under a little pressure and one trader decided to take advantage of this[...]

  • Market News | Oct 1, 2016, 11:21 AM

    Weekend Review - Volatility Indexes and ETPs - 9/26 - 9/30

    Weekend Review - Volatility Indexes and ETPs - 9/26 - 9/30

    The VXST – VIX – VXV – VXMT Curve is a consistent way to look at different S&P 500 Option Implied Volatility time frames.  All four indexes moved up a bit last week, with the curve shape maintaining a pretty steep shape. The ETPs were a mixed bag last week.  VXX and the other long funds that focus on the short end of the curve were higher last week.  VXZ, which focuses on the longer end of the curve was lower, being a victim of the steep contango[...]

  • Market News | Sep 30, 2016, 6:30 AM

    Panel on The Evolution of Options and Futures Strategies at RMC Europe

    Panel on The Evolution of Options and Futures Strategies at RMC Europe

    Andy Nybo from Tabb Group delivered a presentation and then headed a panel discussion on The Evolution of Options and Futures Strategies on the Buyside Trading Desk at CBOE’s RMC Conference Wednesday.  The panelists that followed Nybo’s presentation were: Jared Dubin, Head of Systematic Strategy Research, LMR Partners John Fennell, Executive Vice President, Financial Risk Management, The Options Clearing Corporation Patrick A. Luongo, head of AES Options Sales, Credit Suisse Alex[...]

  • Market News | Sep 30, 2016, 4:42 AM

    Discussion on Improving Trading Using Correlation Information at RMC

    Discussion on Improving Trading Using Correlation Information at RMC

    Three presenters worked together on a presentation that asks the question, Can We Improve Trading Using Correlation Information?  Kokou Agbo-Blou from Societe Generale, Neale Jackson of 36 South Capital Advisors, and Trung-Tu Nguyen of Capital Fund Management all divided duties to answer this question. Each speaker took on various parts of the presentation relating to their individual expertise.  The presentation discussed the difference between long-term correlations and short-term correlations. [...]

  • Market News | Sep 29, 2016, 3:30 PM

    Chris Cole's Keynote Address on Volatility at CBOE RMC Europe

    Chris Cole's Keynote Address on Volatility at CBOE RMC Europe

    Christopher Cole who is a Managing Partner at Artemis Capital Management kicked off the final day of the 5th Annual European of CBOE’s Risk Management Conference.  He gave his view of the current market environment while also framing the discussion around a paper he authored, Volatility and the Allegory of the Prisoner’s Dilemma.  A PDF of that paper may be found here – Cole Volatility paper I was fortunate enough to see Chris speak on this paper in the past.  Although[...]

  • Market News | Sep 29, 2016, 1:21 PM

    Session Focusing on European Market Volatility at RMC

    Session Focusing on European Market Volatility at RMC

    For the final presentation of the second day at CBOE RMC Europe, Abhinandan Deb from Bank of America Merrill Lynch and Michael Stephens from Pioneer Investment Management split duties to discuss Global Volatility Trading Opportunities with a Focus on Europe. Their talk spent some time discussing the fallout from Brexit and potential market fragmentation risk along with geopolitical and central bank risk.  They also discussed the impact of structural investor flows and strategies to gain alpha[...]

  • Market News | Sep 28, 2016, 11:55 AM

    Presentation at CBOE RMC on Hedging with VIX Options

    Presentation at CBOE RMC on Hedging with VIX Options

    Rocky Fishman, Equity Derivatives Strategist from Deutsche Bank Securities and Andrew Warwick, Managing Director from Blackrock teamed up to discuss Hedging with VIX Option at CBOE’s Risk Management Conference in Ireland Tuesday. They focused on evaluating VIX option strategies, not just from implementation to expiration, but also looking at the behavior of positions over a multi-week period.  A comparison was made between SPX and VIX option hedging as well as looking at when it may be[...]

  • Market News | Sep 27, 2016, 2:02 PM

    Discussions Focusing on Short Volatility Strategies Today at RMC

    Discussions Focusing on Short Volatility Strategies Today at RMC

    Stephen Crewe from Fulcrum Asset management and Dhvani Gupta from Barclays shared the presentation duties during a session titled Implementing Systematic Short Volatility Strategies at the 5th Annual European CBOE RMC this afternoon. Dhvani Gupta started things off noting that the SPX Implied – Realized Volatility Premium has averaged 4.3% since January 1990 through present.  She noted that short volatility exposure has benefits beyond traditional diversification techniques so she suggests[...]

  • Market News | Sep 27, 2016, 1:04 PM

    Long Volatility Alternatives Discussed at RMC

    Long Volatility Alternatives Discussed at RMC

    Daniel Danon from Assenagon Asset management and Nicolas Vanhoutteghem from Argentiere Capital teamed up for a discussion around Implementing Long Volatility Exposures at CBOE RMC in Ireland this afternoon. Danon kicked things off with a discussion centering around creating an affordable volatility exposure.  This is a topic that we could probably have a single full day conference discussing as the flexibility around how to gain long volatility exposure without suffering the costs often associated[...]

  • Market News | Sep 27, 2016, 9:23 AM

    Panel Discussion on Volatility Based Investment Strategies at RMC

    Panel Discussion on Volatility Based Investment Strategies at RMC

    The first afternoon session at CBOE RMC Europe was a discussion titled Panel on Volatility-Based Investment Strategies.  The panel moderator was Chris Limbach, Managing Director Investments, PGGM Institutional Business.  The panelists were: Uri Geller, Co-Founder and CIO, Granite M.S.A LTD Roy Hoevenaars, PhD, Portfolio Manager, Blenheim Capital Management Fergus Taylor, Portfolio Manager, Arrowgrass Capital Partners Brendan Walsh, Multi Asset Fund Manager, Aviva Investors Global Services Some[...]