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.

  • Market News | VIX | Trader Talk | Trade Ideas | Jun 4, 2016, 12:05 PM

    Weekend Review - Russell 2000 Index and Volatility - 5/31 - 6/3

    Weekend Review - Russell 2000 Index and Volatility - 5/31 - 6/3

    The Russell 2000 - How about that??? I hear Mel Allen’s voice as I type that. Small caps went on a relative tear last week with the Russell 2000 (RUT) rising 1.19% last week while the large cap focused Russell 1000 was up 0.10%. This places RUT up 2.49% for 2016, within striking distance of the Russell 1000 which is up 2.73% year to date. More impressive is the relative performance since the lows in February. RUT has rebounded 22.1% off this year’s closing low and RUI is up 15.6% over[...]

  • Education | May 29, 2016, 11:35 AM

    "Thanks to a Fine Canadian Doctor...."

    "Thanks to a Fine Canadian Doctor...."

    (Editors Note: The following are thoughts from a floor trader friend on Memorial Day, who wishes to remain anonymous.  We have edited in this year’s dates and times. We ran this blog the last few years going into Memorial Day and received several nice comments.  We hope you enjoy it). “Memorial Day” was called “Decoration Day” many years ago. It originated after the Civil War to commemorate Union and Confederate soldiers who died in the Civil War. I guess they[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 29, 2016, 9:26 AM

    Weekend Review - Volatility Indexes and ETPs - 5/23 - 5/27

    Weekend Review - Volatility Indexes and ETPs - 5/23 - 5/27

    The S&P 500 rally along with the three-day weekend effect pushed VXST to finish Friday below 10.00 for the first time since July of last year. The VXST - VIX - VXV - VXMT curve moved lower and steepened a bit based on the calendar and the strength in the market. Looking at the table below it is like several indexes and instruments are playing limbo seeing how low they can go. VXX and the unleveraged long ETPs lost 10% while the leveraged funds gave up almost 20%. Check[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 28, 2016, 2:41 PM

    Weekend Review - VIX Futures and Options - 5/23 - 5/27

    Weekend Review - VIX Futures and Options - 5/23 - 5/27

    With the strength in stocks last week VIX finished the week just 0.02 higher than the 2016 closing low of 13.10. Always remember that part of the equation on Fridays when looking at VIX performance relates to a weekend impact where the market is closed for two days. This is accentuated when we have a three day holiday weekend so don’t be surprised if VIX rebounds a little on Tuesday regardless of what the stock market is doing. About 20 minutes after the open on Wednesday last week someone[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | May 28, 2016, 9:18 AM

    Weekend Review - Russell 2000 Index and Volatility - 5/23 - 5/27

    Weekend Review - Russell 2000 Index and Volatility - 5/23 - 5/27

    Small cap stocks continue to show some strength with the Russell 2000 (RUT) beating the Russell 1000 (RUI) for the second week in a row. Is this the beginning of a streak? RUT rose 3.43% last week while the large cap focused RUI gained 2.28%. For the year RUT is now up 1.28%, still lagging RUI which is up 2.63%. The RVX / VIX premium remains at the high end of this year’s range, despite the strong performance from small cap stocks. It may be that the uncertainty about the Fed’s[...]

  • VIX | Trader Talk | Futures | May 26, 2016, 3:41 PM

    VIX History Lesson - The Fiscal Cliff of 2012

    VIX History Lesson - The Fiscal Cliff of 2012

    I got a question on Twitter today about the potential for a volatility short squeeze. I think the question was rooted in how much activity and open interest there is in volatility oriented derivatives, but the instance I recall that felt like the move was overdone occurred in late 2012. As the end of 2012 approached it appeared that the President and Congress were at an impasse over extending the Bush Tax Cuts from 2001. The pending result was commonly referred to as the ‘fiscal cliff’.[...]

  • Market News | Trader Talk | Trade Ideas | May 25, 2016, 3:17 PM

    Earnings Next Week - 5/31 - 6/3

    Earnings Next Week - 5/31 - 6/3

    It's a short week, next week as we move into the summer months.  Despite that we still have a few companies set to report earnings next week.  As always the data below is based on the last three years of earnings results, unless the data is in italics.  In those cases less than three years worth of history is available.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.

  • Market News | VIX | Trader Talk | Futures | Strategy | Trade Ideas | May 22, 2016, 6:00 AM

    Weekend Review - VIX Options and Futures - 5/16 - 5/20

    Weekend Review - VIX Options and Futures - 5/16 - 5/20

    The combination of VIX moving lower and June becoming the front month put some pressure on the June futures last week. I think maybe the lack of news flow expected over the next couple of weeks has something to do with that as well. Note the bifurcated futures performance from last week with many longer dated futures rising, which maybe could be the risk of higher rates or an ‘interesting’ presidential election hovering over the markets. Finally, I always like to periodically point out[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 21, 2016, 12:47 PM

    Weekend Review - Volatility Indexes and ETPs - 5/16 - 5/20

    Weekend Review - Volatility Indexes and ETPs - 5/16 - 5/20

    With the S&P 500 zig zagging this week, but finishing up by just over a quarter of one percent the curve was little changed. With one exception, VXST dropped 10% after we got past the FOMC minutes and the markets started to look forward to nothing for the next couple of weeks. VIX and VXMT rose and VXV was lower. I can’t remember the curve shifting like this ever, but since three out of the four moves were pretty small I wouldn’t read too much into it. The long VIX related[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 21, 2016, 10:18 AM

    Weekend Review - Russell 2000 Options and Volatility - 5/16 - 5/20

    Weekend Review - Russell 2000 Options and Volatility - 5/16 - 5/20

    Talk of the Fed raising rates after the June 16 – 17 two-day meeting that is looming has been heating up. If those that control such things are seeing pockets of growth in the US economy and consider it safe to raise rates, then growth must be back in fashion right? Well, that’s how the Russell 2000 (RUT) acted last week relative to the Russell 1000 (RUI) with the small cap benchmark rising a little more than 0.5% more than the Russell 1000 gained. RUT is still down on the year, but made[...]

  • Market News | Strategy | Trade Ideas | May 19, 2016, 3:48 PM

    Earnings Next Week - 5/23 - 5/27

    Earnings Next Week - 5/23 - 5/27

    Again, next week is all about retail which should be interesting since the results have been pretty mixed.  As always the data below is based on the last three years of earnings results, unless the data is in italics.  In those cases less than three years worth of history is available.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.  In the case of HPE (in italics below) there was less than 3 years of[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | May 15, 2016, 3:54 PM

    Weekend Review - VIX Options and Futures - 5/9 - 5/13

    Weekend Review - VIX Options and Futures - 5/9 - 5/13

    After starting the week off on a bullish note, the S&P 500 finished out down just over a half a percent for the week. VIX was up just a bit more than 2%, most likely being held back by weakness that was associated with the S&P 500 moving higher on Monday and Tuesday last week. The spread between the May VIX future and spot index is pretty narrow finishing Friday at less than a point. Not only did the spread between the May futures and spot VIX index narrow, but a portion of the curve actually[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 15, 2016, 2:09 PM

    Weekend Review - Volatility Indexes and ETPs - 5/9 - 5/13

    Weekend Review - Volatility Indexes and ETPs - 5/9 - 5/13

    There was a slight twist in the VXST – VIX – VXV – VXMT curve last week as the shorter dated indexes rose and the two long dated indexes dropped slightly. Although unusual, I am not reading too much into this as the curve was already pretty steep and remains so after relatively small changes across the board last week. While updating the numbers below the first thing that stood out to me was the continued elevated level of VVIX. With VIX up a bit, but still in the 15’s[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 14, 2016, 5:14 PM

    Weekend Review - Russell 2000 Index and Volatility - 5/9 - 5/13

    Weekend Review - Russell 2000 Index and Volatility - 5/9 - 5/13

    According to some of the headlines I came across this week, stock market participants are worried about economic growth. This concern about growth showed up in the relative performance of the Russell 2000 (RUT) and Russell 1000 (RUI) this week as RUT was down twice as much as RUI (-1.10% versus -0.54%). This places RUT down a little less than 3% for the year and RUI precariously in the green by a single basis point. Concerns over growth continue to show up in the relationship between[...]

  • Market News | Trader Talk | Futures | Strategy | Trade Ideas | May 13, 2016, 4:24 PM

    Russell 2000 Futures vs. Short Call Spread from Last Week

    Russell 2000 Futures vs. Short Call Spread from Last Week

    Every weekend I write a brief blog discussing the performance of the Russell 2000, how the CBOE Russell 2000 Volatility Index is reacting to market conditions, and pick out a RUT trade or other piece of market information that looks interesting (at least to me). Last week I noted a bear call spread using Russell 2000 Index Options that sold a deep in the money call and purchased a slightly out of the money call, both of which expired this week. The specific trade involved selling the RUT May 13th[...]