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.

  • Market News | Dec 5, 2015, 11:04 PM

    Weekly Review - VIX Futures and Options - 11/30 - 12/4

    Weekly Review - VIX Futures and Options - 11/30 - 12/4

    The VIX curve shifted lower on the week after a scary Thursday and quick recovery on Friday.  I do find it interesting that VIX is slightly under 15.00 instead of in the 12’s after a 40 point move in the S&P 500.  I guess the story clouds are going to keep the lows for VIX at higher levels over the near term. The blip on the VIX short term future chart that keeps moving to the left is the December 23rd contract.  The holiday effect that we use to note for December[...]

  • Market News | Dec 5, 2015, 9:56 PM

    Weekly Review - Volatility Indexes and ETPs - 11/30 - 12/4

    Weekly Review - Volatility Indexes and ETPs - 11/30 - 12/4

    This week I’m reporting in from Singapore where we are about to open the Asian version of The Options Institute at the Singapore Exchange (SGX).  I don’t have a feel for the market activity from last week, but I can read the numbers and can only imagine what a ride it was for some traders last week.  I added the Thursday close to the VXST – VIX – VXMT – VXV graph that shows up below since a week over week chart just doesn’t do justice to what occurred[...]

  • Market News | Dec 5, 2015, 12:55 AM

    Weekly Review - Russell 2000 Index and Volatility - 11/30 - 12/4

    Weekly Review - Russell 2000 Index and Volatility - 11/30 - 12/4

    I put a blog up a couple of weeks ago about the Russell 2000 (RUT) usually doing well in December on both an absolute and relative basis.  Although it is early, small cap stocks as represented by RUT have dropped 1.23% while the Russell 1000 (RUI) is up 0.40%. The RVX / VIX premium has been zig zagging with the rest of the equity market action and finished the week close to this year’s average of 18% after dropping down to 10% on Thursday.  Confusion seems to abound regarding equities[...]

  • Market News | Dec 1, 2015, 10:06 PM

    CBOE RMC Asia - Day 2 Recap

    CBOE RMC Asia - Day 2 Recap

    Day 2 of CBOE’s first Risk Management Conference is now history and I believe the quality of presentations and the discussion was on par with the more established European and US versions of the conference. The day started with welcoming remarks from Ed Tilly, CEO of CBOE Holdings.  He noted that CBOE is expanding education into Asia through a collaboration with the Singapore Exchange with the establishment of The Options Institute at SGX.  He also noted that CBOE plans to list options[...]

  • Market News | Dec 1, 2015, 2:56 AM

    Directional Options Strategies Discussion at RMC

    Directional Options Strategies Discussion at RMC

    Gus Dhothar from Goldman Sachs Investment Management and William Stephens from Deutsche Bank shared the stage for one for one of the final presentations of the day.  This was a true co-presentation as both Dhothar and Stephens went back and forth discussing each slide.  They covered five different topics – index strategies, single stock option trading, leveraging structured product flow, directional implementation, and finally how to trade China. With respect to index strategies the[...]

  • Market News | Dec 1, 2015, 1:24 AM

    Cross Region Volatility Analysis for Investing and Hedging

    Cross Region Volatility Analysis for Investing and Hedging

    Benoit Meulot from BTG Pactual and Shane Carroll from SG Securities joined up to lead a discussion on Cross-Region Volatility Analysis for Investing and Hedging.  Meulot led things off by discussing the differences in the behavior of different aspects of market volatility among US, European, and Asian markets.  Carroll followed up with a discussion on how market participants approach trading these differences. Meulot’s discussion focused on how supply / demand imbalances impact equity[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Dec 1, 2015, 12:00 AM

    Hedge Funds and Volatility-Based Strategies Discussion at RMC Asia

    Hedge Funds and Volatility-Based Strategies Discussion at RMC Asia

    The first post-lunch presentation in Hong Kong was actually a hybrid presentation / discussion panel.  Things started off with the Chairman of Eurekahedge, Satoshi Iwanaga from Eurekahedge which created and calculates four indexes to measure the performance of different volatility oriented strategies.  This segmentation is logical since strategies that focus on volatility can vary greatly in their process. The four CBOE Eurekahedge Volatility Indexes are: CBOE Eurekahedge Short Volatility[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Nov 30, 2015, 9:31 PM

    Volatility and the Allegory of the Prisoner's Dilemma

    Volatility and the Allegory of the Prisoner's Dilemma

    Chris Cole from Artemis Capital delivered a presentation with the title, Volatility and the Allegory of the Prisoner’s Dilemma.  In a nutshell the Prisoner’s Dilemma relates to game theory and explores why two rational individuals might not cooperate even if it appears that it is in their best interest to do so. There were three points that Cole wanted to get across during his presentation – Investors are trapped in a Prisoner’s Dilemma Volatility is the only real asset[...]

  • VIX | Trader Talk | Education | Futures | Trade Ideas | Nov 30, 2015, 8:03 PM

    Presentation Discussing the Current Volatility Environment at CBOE RMC Asia

    Presentation Discussing the Current Volatility Environment at CBOE RMC Asia

    Buzz Gregory, Equity Derivatives Strategist at Goldman Sachs, delivered a very informative session on VIX and SPX option trading today in Hong Kong.  His speech hit on a topic that was frequently mentioned at RMC Europe a couple of weeks ago, the current shift in volatility regimes. Highlights of Buzz’s presentation include – It was noted that both SPX and VIX option volumes continue to steadily grow with volume experiencing dramatic increases occurring around market events About[...]

  • Market News | Nov 30, 2015, 7:30 PM

    CBOE CEO Edward Tilly on New Initiatives, Expanding Customer Reach in Asia

    CBOE CEO Edward Tilly on New Initiatives, Expanding Customer Reach in Asia

    CBOE CEO Edward Tilly began day two of CBOE RMC Asia in Hong Kong with a tribute of sorts to the growth and expansion of CBOE’s Risk Management Conferences. Years of success in the U.S. and Europe have paved the road to CBOE’s inaugural event in Asia this year. Turning to product news, Tilly highlighted the recent launches of VIX Weeklys futures in July and VIX Weeklys options in October. “We worked closely with our VIX user base to develop a short-term volatility product that more[...]

  • Market News | VIX | Trader Talk | Education | Futures | Nov 30, 2015, 1:16 PM

    RMC Asia Day 1 Recap

    RMC Asia Day 1 Recap

    The first day of the inaugural CBOE Risk Management Conference in Asia was jam packed with information that has me with a new ‘to do’ list that’ll keep my spring intern hopping until May. The conference commenced with a primer on VIX delivered by me.  As I said in the original post, it’s a little strange blogging a recap of your own presentation.  I feel a bit like the Rickey Henderson of options if I speak about myself in the third person so I just can’t do[...]

  • Market News | Nov 30, 2015, 2:40 AM

    Panel Discussion on Options and Volatility Market Structure at RMC Asia

    Panel Discussion on Options and Volatility Market Structure at RMC Asia

    The final presentation on the first day of RMC Asia was a panel session titled Options and Volatility Market Structure.  Steven Sears from Barron’s moderated the pan which consisted of Pat Fay, Global Head of Derivatives from FTSE Russell, David Friedland, Managing Director from Interactive Brokers, Timothy Hendricks, Found and Managing Partner of X-Change Financial Access, LLC, and Qi Wang, Head of Options Product Development, China Financial Futures Exchange. The panel discussions are[...]

  • VIX | Trader Talk | Education | Futures | Nov 30, 2015, 12:18 AM

    Primer on Options and Volatility Trading at RMC Asia

    Primer on Options and Volatility Trading at RMC Asia

    The first presentation at the first ever CBOE Risk Management Conference to be held in Asia kicked off with a primer on options and volatility delivered by me.  I couldn’t figure out if I wanted to refer to myself in the third person or err on the side of possibly sounding presumptuous.  I decided to go with the latter. Over the course of 75 minutes I discussed several things that relate to the option market with a focus on volatility and VIX related derivatives.  My presentation[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Nov 29, 2015, 12:00 PM

    Weekly Review - Russell 2000 Index and Volatility - 11/23 - 11/27

    Weekly Review - Russell 2000 Index and Volatility - 11/23 - 11/27

    Last week I noted that December has traditionally been a good month for stocks, especially small cap stocks.  That blog can be found at The Week in Russell 2000 Trading - 11/16 - 11/20.  RUT appeared to get a head start on things last week by rallying over 2% while the Russell 1000 (RUI) was up by only about 2 points.  RUT is now a rounding error from up on the year and still lags RUI by about 1.5%. With the relative rally in RUT the RVX / VIX premium dropped to levels[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Nov 29, 2015, 3:44 AM

    Weekly Review - VIX Futures and Options - 11/23 - 11/27

    Weekly Review - VIX Futures and Options - 11/23 - 11/27

    The S&P 500 was hardly changed on the week last week and the same may be said for VIX and the monthly term structure.  The lines don’t overlap, but if I am not wearing my reading glasses the chart below almost looks like the same line. The only thing of interest to report about the short term futures chart is the dip that shows up on the orange line below.  That’s the contract that expires just before Christmas which may be discounting several holidays which[...]