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.

  • Education | Apr 6, 2016, 2:21 PM

    The Return of RUT Fest

    The Return of RUT Fest

    Last September The Options Institute hosted a full day of webcasts focusing on trading Russell 2000 Options that we referred to as "RUT Fest".  By popular demand RUT Fest returns on Tuesday April 12th with all four of the instructors from CBOE being joined by Kerry Given from Parkwood Capital LLC and CBOE Live Vol's Kevin Nichols.  We will discuss a range of topics related to Russell 2000 Index Options, starting with the basics and moving on to spread trading, strategy[...]

  • Trader Talk | Trade Ideas | Apr 4, 2016, 1:35 PM

    Earnings This Week - 4/4 - 4/8

    Earnings This Week - 4/4 - 4/8

    This will be the last quiet earnings week for about a month.  The numbers below represent three years of history.   After the ticker the columns show the biggest gain, biggest drop, average move (non-directional) and stock price reaction last quarter.  

  • Market News | VIX | Trader Talk | Education | Futures | Trade Ideas | Apr 3, 2016, 11:11 AM

    Weekend Review - VIX Options and Futures - 3/28 - 4/1

    Weekend Review - VIX Options and Futures - 3/28 - 4/1

    VIX closed on the 2016 lows last week and flirted with a 12 handle. I was asked at a seminar in Scottsdale, AZ on Thursday night how long it will take for VIX to touch 12. I responded that I had a hard time seeing a 12 handle this year. It won’t take much for me to be proven wrong. Something that keeps me in the higher volatility regime camp is the relative level of VIX futures to spot VIX. Note below that the April futures are at a hefty premium to spot VIX despite getting the monthly employment[...]

  • Weekend Review - Volatility Indexes and ETPs - 3/28 - 4/1

    Weekend Review - Volatility Indexes and ETPs - 3/28 - 4/1

    Don’t fight the Fed. That’s a rule we must all live by and long volatility is a fight that isn’t winning these days. Note the drop in the week over week curves below and keep in mind that on March 24th there was a three day weekend in front of VXST which makes that drop even more dramatic. The curve is steep, which can be taken as longer term concerns prevail, but for the near term those looking for higher volatility have stopped fighting. The long funds on the table[...]

  • Weekend Review - Russell 2000 Index and Volatility - 3/28 - 4/1

    Weekend Review - Russell 2000 Index and Volatility - 3/28 - 4/1

    The Russell 2000 (RUT) had a great week rising 3.5% while the large cap focused Russell 1000 (RUI) also did pretty well gaining about 1.9%. For the year RUI went from down to up and is now in the green by 1.23% while the Russell 2000 is still in the red by 1.60%. A repeat of last week and RUT will join RUI in positive territory for 2016. I put lots of charts together every weekend and there’s always one or two that catch my eye. This week’s is below as despite the outperformance[...]

  • Market News | VIX | Trader Talk | Futures | Mar 27, 2016, 10:43 AM

    Weekend Review - Russell 2000 Options and Volatility - 3/21 - 3/24

    Weekend Review - Russell 2000 Options and Volatility - 3/21 - 3/24

    The Russell 2000 (RUT) gave up 2% last week after making a little run at closing the 2016 gap with the Russell 1000 (RUI).  RUT is now down just about 5% for 2016.  There was a glimmer of hope for large caps this time last week, but RUI gave up 0.70% last week and is now 0.65% lower for 2016. The concern for small cap stocks continues to rise relative to large cap stocks in the form of the ratio of the CBOE Russell 2000 Volatility Index (RVX) relative to VIX.  The gap between the[...]

  • Market News | VIX | Trader Talk | Futures | Mar 26, 2016, 9:35 AM

    Weekend Review - VIX Options and Futures - 3/21-3/24

    Weekend Review - VIX Options and Futures - 3/21-3/24

    Despite facing a three day weekend, VIX rebounded with the weakness in the stock market last week.  Of note on the chart below is the price action for the April future.  That contract was at a pretty steep premium to spot VIX and the result was a slight drop in the April contract despite the rise in VIX.  May is at a very large premium as well and this may have been a motivating factor behind the two trades discussed below. Since it is a long weekend let’s take a look at two[...]

  • Market News | VIX | Trader Talk | Education | Strategy | Trade Ideas | Mar 25, 2016, 9:19 AM

    Weekend Review - Volatility Indexes and ETPs - 3/21 - 3/24

    Weekend Review - Volatility Indexes and ETPs - 3/21 - 3/24

    The S&P 500 was slightly lower last week, ruining a five week winning streak.  This gave three of the four volatility indexes on the chart below a chance to rebound from 2016 lows.  The exception is VXST, but we give this one a break since three day weekends are always tough on VXST. The choppiness in the volatility space last week, along with the front month future actually losing a little value did no favors for the VIX related ETPs.  UVXY was up almost 9% for the week early[...]

  • Market News | Mar 20, 2016, 8:30 AM

    Weekend Review - VIX Options and Futures - 3/14 - 3/18

    Weekend Review - VIX Options and Futures - 3/14 - 3/18

    March VIX futures and options settled on the open Wednesday and now the next standard expiration is April.  Of course there are weekly expirations between now and April and this is one of those instances where there five weeks between standard settlement days.  I note this because of the shape of the curve below.  Note that on Friday April futures closed at a premium of just over 3.70.  VIX is admittedly low, but VIX futures traders are reluctant to sell April futures with so[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Mar 19, 2016, 4:29 PM

    Weekend Review - Volatility Indexes and ETPs - 3/14 - 3/18

    Weekend Review - Volatility Indexes and ETPs - 3/14 - 3/18

    I’m honestly surprised and admitting that I have been very wrong in trying to guess at the VIX action lately.  I never would have expected a 13 handle for VIX, but low and behold that’s what we got on Friday.  When I return to work on Monday I will spend a little time on the wall of shame. Even the longer dated volatility indexes have given up the fight with VXV and VXMT closing near the respective 2015 averages after remaining at elevated levels for most of 2016. VXX[...]

  • Market News | VIX | Blogging Options | Trader Talk | Futures | Trade Ideas | Mar 19, 2016, 2:38 PM

    Weekend Review - Russell 2000 Options and Volatility - 3/14 - 3/18

    Weekend Review - Russell 2000 Options and Volatility - 3/14 - 3/18

    I guess I have to try to work some sort of St. Patrick’s Day theme in here since the Russell 1000 (RUI) went from red to green on the year last week, but I’m too worn out to come up with anything clever.  Also, it is difficult to get too excited over an index that is up 0.05% for the year.  Since I’m trying to be funny, here’s a lame attempt, the Russell 2000 (RUT) remains in a rut for 2016, even after gaining 1.3% last week the small cap benchmark is still 3% lower[...]

  • Market News | VIX | Blogging Options | Trader Talk | Futures | CBOE Memories | Mar 17, 2016, 9:02 AM

    VIX Network Discussion at FIA Boca

    VIX Network Discussion at FIA Boca

    Yesterday afternoon at the 41st Annual International Futures Industry Conference in Boca Raton, CBOE and S&P Dow Jones Indices teamed up for a session highlighting the growing use of VIX around the world. Reid Steadman from S&P Dow Jones Indices offered a brief welcome address where he noted the various markets where participants have access to a consistent measure of implied volatility.  He underscored that a wide variety of equity markets including India, Australia,[...]

  • Market News | Blogging Options | Trader Talk | Strategy | Trade Ideas | Mar 17, 2016, 8:14 AM

    Earnings Week of 3/21 - 3/25

    Earnings Week of 3/21 - 3/25

    It's a very quiet week next week on the earnings front with the highlight being NKE.  The numbers below represent three years of history.   After the ticker the columns show the biggest gain, biggest drop, average move (non-directional) and stock price reaction last quarter.  

  • Market News | Trader Talk | Trade Ideas | Mar 14, 2016, 12:59 PM

    Earnings Week of 3/14 - 3/18

    Earnings Week of 3/14 - 3/18

    Apologies for being late to the game, luckily we do have some big names reporting later this week so this blog may still be useful for many readers. The numbers below represent three years of history.   After the ticker the columns show the biggest gain, biggest drop, average move (non-directional) and stock price reaction last quarter.

  • VIX | Blogging Options | Trader Talk | Education | Futures | Trade Ideas | Mar 13, 2016, 10:04 AM

    Weekend Review - Russell 2000 Options and Volatility - 3/7 - 3/11

    Weekend Review - Russell 2000 Options and Volatility - 3/7 - 3/11

    After stumbling a bit last week both the Russell 1000 (RUI) and Russell 2000 (RUT) moved higher with RUI up by about 1% and RUT rising 0.5%.  this is the first week in a while where RUT under performed RUI and the small cap benchmark is now lagging the large cap Russell 1000 by 3% for 2016. The relative implied volatility ticked up a bit for the CBOE Russell 2000 Volatility Index when compared to VIX.  The 2016 closing high for the RVX / VIX ratio occurred on February 1st and[...]