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.

  • VIX | Trader Talk | Education | Futures | Trade Ideas | Dec 19, 2015, 9:46 AM

    Weekly Review - Volatility Indexes and ETPs - 12/14 - 12/18

    Weekly Review - Volatility Indexes and ETPs - 12/14 - 12/18

    Finally, the Fed raised rates.  I’m reading Ben Bernanke’s book and it is interesting that this was being debated when he was still the chairman.  The equity market loved it and then hated it with the result being a roller coaster of a week.  The VXST – VIX – VXV – VXMT curve was on heightened alert this time last week and returned to normal to end the week.  It is rare, but we seem to have experienced an earnings like volatility crush in SPX volatility[...]

  • Market News | Technical Analysis & Charts | VIX | Dec 15, 2015, 12:19 PM

    Looking at VIX With Respect to an Initial Rate Hike

    Looking at VIX With Respect to an Initial Rate Hike

    On June 30, 2004 the Federal Reserve Open Markets Committee raised the intended Fed Funds rate from 1.00% to 1.25%.  This was the last first time we had an initial hike in interest rates (yes you read that correctly).  A lot has happened since this last first hike.  I did the quick math and my intern was nine years old, so she’s learned to drive and reached a major milestone that goes along with being 21 years old.  When we last had a rise in rates ISIS was either a pharmaceutical[...]

  • Market News | Trade Ideas | Dec 14, 2015, 4:59 PM

    Earnings Previews - 12/15 - 12/22

    Earnings Previews - 12/15 - 12/22

    I've been remiss at keeping up with earnings and will use a brutal travel schedule as my excuse.  Since there are only two companies reporting next week I'm putting all the earnings for this week and next into a single blog.  The numbers below represent the last three years worth of earnings releases with Max being the biggest stock price rally, Min the biggest loss, Abs Avg is the average move without taking direction into account, and Last Q showing what the stock did when the company[...]

  • Education | Dec 14, 2015, 3:12 PM

    CBOE Options Institute at SGX Opens in Singapore

    CBOE Options Institute at SGX Opens in Singapore

    Last week I was in Singapore for the launch of the CBOE Options Institute at SGX.  Option trading is spreading around the globe and our partnership with SGX is a sign that more traders and investors outside the United States want to learn about using options as effective speculative and risk management tools. Our first class took place at the SGX Academy where classes on futures and stock trading have been held for years.   We had well over 150 students show up last Wednesday for a[...]

  • Market News | Dec 13, 2015, 7:11 PM

    Weekly Review - Russell 2000 Index and Volatility - 12/7 - 12/11

    Weekly Review - Russell 2000 Index and Volatility - 12/7 - 12/11

    Small cap stocks took it on the chin last week with the Russell 2000 (RUT) losing just over 5% on the week which places the small cap benchmark at down 6.73% for 2015.  In the large cap space the Russell 1000 (RUI) lost 3.85% last week which caused this large cap benchmark to move into the red for 2015.  RUI is now down 2.6% for 2015. Before moving to the volatility indexes I want to address where we are in December with respect to RUT and RUI.  A couple of weeks ago I[...]

  • Market News | Dec 13, 2015, 8:26 AM

    Weekly Review - VIX Futures and Options - 12/7 - 12/11

    Weekly Review - VIX Futures and Options - 12/7 - 12/11

    VIX put up a heck of a Friday to top off the biggest weekly gain on a percentage basis since the debacle that was late August.  I mentioned this in my previous blog, but it is worth reiterating.  While at RMC Asia one of the best comments stated something to the effect of, “When the VIX curve is flat the market is uncertain”.  That pretty much describes the term structure chart from Friday. I’m beginning to learn that flat to slight contango is normal[...]

  • Market News | Dec 12, 2015, 8:30 PM

    Weekly Review - Volatility Indexes and ETPs - 12/7 - 12/11

    Weekly Review - Volatility Indexes and ETPs - 12/7 - 12/11

    I have returned from a couple of weeks in Asia speaking at CBOE’s First Asian version of CBOE’s Risk Management Conference and helping with the launch of the CBOE Options Institute at SGX in Singapore.  One of the best comments I heard at Risk Management was that when the VIX term structure is flat it indicates uncertainty with respect to the equity markets.  I think this statement translates well with respect to the chart below as well.  VIX, VXV, and VXMT all closed within[...]

  • 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[...]