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 | Jul 20, 2016, 2:23 PM

    Analysis of an IBM Earnings Trade

    Analysis of an IBM Earnings Trade

    Students from CBOE classes often keep in close touch with us long after they have visited the Options Institute.  I heard from one OI alumnus on Monday who noticed that IBM was set to report earnings after the close. They also had taken a look at the stock price reaction to earnings over the last three years.  On average IBM has moved up or down about 4%, but the majority of those moves had been to the downside.  The thing that stood out for this former student was that the biggest[...]

  • Education | Jul 20, 2016, 7:54 AM

    How Judy Greer Might Suggest Cheryl Tunt Hedge Her Portfolio

    How Judy Greer Might Suggest Cheryl Tunt Hedge Her Portfolio

    I’m using my blogging ability to wish a happy birthday to an American Treasure, Judy Greer.  Greer first caught my eye as the younger sister in the under-appreciated classic Chicago movie, Kissing a Fool.  Many people may remember her as Jennifer Garner's enemy in 13 Going on 30 (I was rooting for Judy's character).  She’s also appeared in many TV shows such as Arrested Development and Two and a Half Men.  My favorite role, however, just uses Judy’s voice as[...]

  • Education | Jul 18, 2016, 4:32 PM

    Hunter S. Thompson Would Suggest Focus in Your Trading

    Hunter S. Thompson Would Suggest Focus in Your Trading

    If he were alive today Hunter S. Thompson would be one year short of becoming an octogenarian and celebrating his 79th birthday.  Anyone who has seen Johnny Depp’s depiction of the ‘gonzo journalist’ in the 1998 movie Fear and Loathing in Las Vegas knows that would be nothing short of a miracle.  What initially made Thompson famous was the book Hell’s Angels:  The Strange and Terrible Saga of the Outlaw Motorcycle Gangs which was published in 1966.  When[...]

  • VIX | Trader Talk | Trade Ideas | Jul 17, 2016, 12:00 PM

    Weekend Review - VIX Options and Futures - 7/11 - 7/15

    Weekend Review - VIX Options and Futures - 7/11 - 7/15

    With VIX testing 2016 lows this past week the soon to be retired July future headed lower at a slightly faster rate than VIX dropping 6.43% versus 4.02%.  Even with the bigger loss on the week the July contract finished the week at more than a one premium to VIX.  We will see on Wednesday morning if the futures or the spot index win the tug of war into July settlement.  I would be remiss if I didn’t point out the steepness of the VIX curve from August to December.  VIX is[...]

  • Market News | Jul 17, 2016, 8:00 AM

    Weekend Review - Russell 2000 Index and Options - 7/11 - 7/15

    Weekend Review - Russell 2000 Index and Options - 7/11 - 7/15

    It was quite a week for small cap stocks as the Russell 2000 (RUT) rose 2.4% while the Russell 1000 (RUI) gained 1.5%.  This strong week for RUT places the index up 6.11% for 2016, a tad more than RUI’s 2016 gain of 5.71%.   Even more impressive for RUT, the small cap index is up 26.4% since putting in a closing low of 953.72 back in February. In the volatility space both VIX and the CBOE Russell 2000 Volatility Index were lower last week.  The RVX / VIX premium[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jul 16, 2016, 12:00 PM

    Weekend Review - Volatility Indexes and ETPs - 7/11 - 7/15

    Weekend Review - Volatility Indexes and ETPs - 7/11 - 7/15

    Short term volatility was the big loser among the four S&P 500 related volatility indexes as VXST lost over 10% last week.  This was more than two times the drop in VIX and more than three times the drop in VXV and VXMT.  The result is a pretty darn steep curve indicating concerns about the second half of this year for the stock market are lurking around in option volatility. Despite the drop in VIX the VIX of VIX rose last week.  As I typed that I realized that two[...]

  • Market News | Trader Talk | Trade Ideas | Jul 14, 2016, 1:34 PM

    Earnings Next Week - 7/18 - 7/22

    Earnings Next Week - 7/18 - 7/22

    Finally!  The second quarter earnings season kicks into high gear next week.  As always the data below is based on the last three years of earnings results unless the ticker is in itallics.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.

  • VIX | Trader Talk | Trade Ideas | Jul 13, 2016, 12:13 AM

    When VIX and SPX Rise Together - the 2016 Version

    When VIX and SPX Rise Together - the 2016 Version

    On July 11 and July 12 both the S&P 500 and VIX rose on the day.  This brought out an old blog I wrote in 2013 discussing what the stock market has historically done when both the S&P 500 and VIX rise two days in a row.  I updated the numbers from that last study and now we have 92 occurrences where both indexes rose two days in a row (today was number 93 and the jury is still out on the subsequent market action.  The table below summarizes what the S&P 500 did on average[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | Jul 10, 2016, 12:18 PM

    Weekend Review - VIX Options and Futures - 7/5/2016 - 7/8/2016

    Weekend Review - VIX Options and Futures - 7/5/2016 - 7/8/2016

    VIX finished the week at 13.20 – only 0.10 higher than lowest 2016 close of 13.10.  The front month (July) futures contract was down slightly more than VIX this past week.  Anecdotally I’ve noticed in the past when we see VIX down significantly in reaction to the employment number that the front month contract seems to give up extra value.  I attribute this to a lack of anticipated market news after the employment number until expiration. At least on trader[...]

  • VIX | Jul 10, 2016, 8:57 AM

    Weekend Review - Volatility Indexes and ETPs - 7/5/2016 - 7/8/2016

    Weekend Review - Volatility Indexes and ETPs - 7/5/2016 - 7/8/2016

    I was participating in the Vol Views podcast Friday around lunch time and decided to take a look at the whole suite of volatility indexes and see if anything was higher.  None of the 29 volatility indexes CBOE quotes were higher at that time and none of them finished higher on Friday.  The list below shows the price changes ranked on a percentage basis for yesterday. The four S&P 500 related volatility indexes moved lower last week.  The largest drop came from VIX[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jul 9, 2016, 12:07 PM

    Weekend Review - Russell 2000 Options and Volatility - 7/5/2016 - 7/8/2016

    Weekend Review - Russell 2000 Options and Volatility - 7/5/2016 - 7/8/2016

    On Thursday there was a trending hashtag on Twitter #ThursdayThoughts or something like that.  I was tempted to tweet something like “Buy on any weakness #ThursdayThoughts” but was afraid CBOE wouldn’t find the humor in something that looks like a recommendation.  However, if I had done so I would have looked darn good on Friday.  The tide took all ships higher with RUT gaining 2.4% on the day and RUI up 1.5%.  The Friday rally helped place RUT up 3.65% for the[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | Jul 8, 2016, 10:59 AM

    Gold - Where's the Risk?

    Gold - Where's the Risk?

    I’ve kept my eye off gold this year and boy have I missed a ride. The GLD ETF is up about 28% in 2016 which leaves most markets in the dust. Apparently #Gold is a trending topic today on Twitter as well. S0 even though the shiny metal is higher, is there any opportunity being anticipated for the rest of 2016? To get a feel for what the market thinks, I always consult option implied volatility. Luckily CBOE has the CBOE Gold ETF Volatility Index (GVZ) where I can get an idea if option[...]

  • Market News | Trader Talk | Trade Ideas | Jul 7, 2016, 4:37 PM

    Earnings Next Week - 7/11 - 7/15

    Earnings Next Week - 7/11 - 7/15

    Things start to get interesting as the early reporters give us results for the second quarter beginning next week.  As always the data below is based on the last three years of earnings results.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.  

  • Market News | Trader Talk | Trade Ideas | Jul 6, 2016, 2:02 PM

    Three Trades for #NationalFriedChickenDay

    Three Trades for #NationalFriedChickenDay

    Nothing gets the instructors at the Options Institute more excited than national holidays. Today’s event is National Fried Chicken Day which has us collectively getting together to determine how investors and traders can use the option market to trade America’s second favorite fried food. Peter Lusk suggested we take a look at Yum Brands (YUM) which owns his favorite fast food outlet Kentucky Fried Chicken or just KFC for the kids. Peter is often seen on the weekend heading home on his[...]

  • Market News | Trade Ideas | Jul 5, 2016, 11:59 AM

    Earnings Week of 7/5/2016 - 7/8/2016

    Earnings Week of 7/5/2016 - 7/8/2016

    This is the last of the lull weeks with only two companies reporting earnings that have short dated options available for trading.  As always the data below is based on the last three years of earnings results.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.