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.

  • VIX | Education | Sep 11, 2017, 9:16 AM

    New Developments in Options and Volatility Discussion at CBOE RMC Europe

    New Developments in Options and Volatility Discussion at CBOE RMC Europe

    The 6th Annual European version of CBOE’s Risk Management Conference kicked off with a presentation from Bill Speth, Vice President of Research and Product Development at CBOE and Tim Edwards, PhD, Senior Director of Index Investment Strategy for S&P Dow Jones Indices.  Tim kicked things off breaking down VIX in several ways and explaining what VIX tells us.  He referred to VIX as a crowd sourced projection of market volatility.  He noted that VIX is mean reverting and[...]

  • Aug 2, 2017, 3:30 PM

    Bearish on TSLA in Front of Earnings

    Bearish on TSLA in Front of Earnings

    Other trades of note: Teva Pharmaceutical Industries Limited (TEVA) at 31.10, a Bull Put Spread traded 520 times. The trader sold the Aug 4th 34/32 spread for a credit of 1.57. TEVA is expected to report earnings on Thursday, August 3, before the market open. Otonomy, Inc. (OTIC) at 18.35, a Calendar Spread traded 1,700 times. The trader sold the Oct 20th 20 Calls and bought the Sept 15th 20 Calls collecting 2.00. OTIC is expected to report earnings on Thursday, August 3, after the market[...]

  • VIX | Morning Call | Aug 1, 2017, 7:39 AM

    CBOE Morning Call 8/1/2017

    CBOE Morning Call 8/1/2017

    Big Picture About 3/4‘s of the companies in the S&P 500 that have already reported second quarter earnings beat their estimates.  This sounds impressive, but according the Bank of America Merrill Lynch the stock price reactions have been muted (despite the S&P 500 pushing the 2500 level).  Yesterday the Chicago PMI was lower than expectations, but Pending Home Sales was higher than expectations.  Nothing can go wrong if housing sales are strong, right?  We get[...]

  • Morning Call | Jul 31, 2017, 7:18 AM

    CBOE Morning Call 7/31/2017

    CBOE Morning Call 7/31/2017

    Big Picture There are over a hundred stocks with Weeklys reporting this week in what is probably the heaviest portion of the earnings calendar.  All eyes will be on AAPL’s report tomorrow after the close which as well as financials will probably give us some insight into product launches coming in the next few months.  The economic calendar is heavier this week than last week with Personal Income and ISM tomorrow, the ADP employment number Wednesday, Factory Orders and Services[...]

  • Market News | Trader Talk | Trade Ideas | Jul 29, 2017, 11:36 AM

    Weekend Review of Russell 2000 Options and Volatility 7/24/2017 - 7/28/2017

    Weekend Review of Russell 2000 Options and Volatility 7/24/2017 - 7/28/2017

    Large cap stocks held up better than small caps last week and the Russell 1000 (RUI) is now outperforming the Russell 2000 (RUT) by just about 1.00% for the third quarter.  I had high hopes for small cap stocks in the second half of 2017, but those hopes are starting to fade.   The CBOE Russell 2000 (RVX) premium to VIX topped 50% for the first time since early June.  My excuse for the higher RVX to VIX relationship has been blamed on VIX, but with VIX rising a bit next week I have[...]

  • VIX | Trader Talk | Trade Ideas | Jul 29, 2017, 11:32 AM

    Weekend Review of Volatility Indexes and ETPs 7/24/2017 to 7/28/2017

    Weekend Review of Volatility Indexes and ETPs 7/24/2017 to 7/28/2017

    On a week over week basis the S&P 500 was down fractionally.  One would not assume such a small move from SPX when looking at the VXST – VIX – VXV – VXMT curve below.  VXST and VIX made nice moves to the upside while the longer end of the curve moved up a bit less resulting in a slight flattening of the curve.  The long funds that focus on the first and second month futures were up slightly while the short funds were down slightly.  SKEW and VVIX both[...]

  • VIX | Trader Talk | Trade Ideas | Jul 29, 2017, 9:11 AM

    Weekend Review of VIX Futures and Options 7/24/2017 - 7/28/2017

    Weekend Review of VIX Futures and Options 7/24/2017 - 7/28/2017

    This past week is one of those weeks where those new to VIX futures get a lesson in price behavior and the lack of fair value that exists between the futures and the spot index.  VIX rose almost 10% on the week, the August contract was unchanged and the rest of the curve actually moved lower.  The curve had been steep and the result was futures not budging too much when VIX got moving to the upside.  As we enter the last five months of the year I would like to highlight where we[...]

  • Morning Call | Jul 28, 2017, 8:12 AM

    CBOE Morning Call 7/28/17

    CBOE Morning Call 7/28/17

    Big Picture Earnings continue to be skewed to the positive side as far as stock price reactions go, although the stock market seems to taking a breather.  JP Morgan followed Goldman Sachs’ lead and said some nasty things about tech stocks which hit the Nasdaq particularly hard yesterday and took other sectors down with it.  VXN (think Nasdaq VIX) was up much more than the other broad-based equity volatility indexes.  Needless to say, traders will probably focus on large tech[...]

  • Earnings | Jul 27, 2017, 12:20 PM

    Earnings Week of July 31 to August 4

    Earnings Week of July 31 to August 4

    The biggest week for 2Q earnings is upon us.  As always the numbers below represent the last 12 quarters of one day stock price reaction to earnings. 

  • Morning Call | Jul 27, 2017, 6:28 AM

    CBOE Morning Call 7/27/2017

    CBOE Morning Call 7/27/2017

    Big Picture The FOMC didn’t offer up any surprises yesterday afternoon and the stock market reacted with a giant yawn.  VIX finally put in a new all-time intraday low hitting 8.84 as the FOMC announcement was just about to hit the tape.  Before the day was done VIX had worked its way up to 9.60.  The odds of a rate hike in December still remains at about 50%, but I’m taking the no hike side of that bet.  It will take very little in the form of negative news for the[...]

  • Morning Call | Jul 26, 2017, 6:58 AM

    CBOE Morning Call 7/26/2017

    CBOE Morning Call 7/26/2017

    Big Picture Today there will be lots of talk about the FOMC, but the chances of anything truly unexpected coming this afternoon are very low.  This week, I have heard about a dozen people state that when we get an FOMC announcement the stock market goes up.  I was wondering if part of yesterday’s strength could be attributed to that mindset.  Remember when everyone is like minded, it may be time to go the other way.  We are beginning to hear grumblings of who may be appointed[...]

  • Jul 25, 2017, 4:18 PM

    We Know VIX is Low - The Why and What May Be Next

    We Know VIX is Low - The Why and What May Be Next

    Regardless of how you state it, VIX is low.  Today VIX got as low as 9.04 which is the second lowest intraday low on record.  The lowest print for VIX came on December 27, 1993 with a low of 8.89.  I could waste a thousand more words describing how low VIX is relative to history, but instead of doing that I’d like to dive a bit into what it means.  VIX is low, but market volatility is low as well.  What I mean by that is the realized volatility of the S&P 500 is[...]

  • Morning Call | Jul 25, 2017, 6:57 AM

    CBOE Morning Call - 7/25/2017

    CBOE Morning Call - 7/25/2017

    Big Picture Today is the first day of a two-day FOMC meeting.  As a gentle reminder, there are S&P 500 (SPX) options expiring on the close tomorrow which are perfect for expressing an opinion about the potential market reaction (or lack thereof) to the FOMC announcement tomorrow afternoon.  Also, the earnings calendar is so heavy for the next three days it should be on a weight loss reality show. Overnight / Pre-Market Japanese stocks were slightly lower overnight.  Both the EuroStoxx[...]

  • What's Trading | Jul 24, 2017, 2:44 PM

    What's Trading Today - MCD and More

    What's Trading Today - MCD and More

    Other trades of note by Lauren Ravalli Facebook, Inc. (FB) at 165.29, a Bear Call Spread traded 9,200 times. The trader sold the Jul 28th 170/177.5 spread for a credit of 1.40. FB is expected to report earnings on Wednesday, July 26th after market close. Russell 2000 Index (RUT) at 1,431.93, a Bull Put Spread traded 1,402 times. The trader sold the Aug 18th 1,280/1,250 spread for a credit of .30. Starbucks Corporation (SBUX) at 58.18 a Long Straddle traded 1,000 times. The trader bought[...]

  • Morning Call | Jul 24, 2017, 7:28 AM

    CBOE Morning Call - 7/24/2017

    CBOE Morning Call - 7/24/2017

    Big Picture VIX finished the week last week just above the all-time low.  There was a very large VIX spread trade using October options on Friday.  More about that trade appeared in the VIX Weekend Review - Weekend Review of VIX Options and Futures 7/17/2017 - 7/21/2017 It is a huge week for earnings, over seventy companies with Weeklys available for trading report earnings.  More about that below.  Also, Wednesday we get the release of information that will follow a two day[...]