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.

  • Trader Talk | Trade Ideas | Nov 1, 2015, 5:11 PM

    Earnings Next Week - 11/2 - 11/6

    Earnings Next Week - 11/2 - 11/6

    We have a heavy week again for earnings.  So far my crack staff (me) has only been able to compile numbers for Monday and Tuesday next week.  I'll follow up with the balance of the calendar on Monday to give option traders that like to trade around earnings a little lead time.  As always the numbers below represent the biggest gain, loss, average move (without taking direction into account), and what the stock price reaction was for the previous quarter.  All numbers represent[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Nov 1, 2015, 3:30 PM

    The Week in Russell 2000 Trading - 10/26 - 10/30

    The Week in Russell 2000 Trading - 10/26 - 10/30

    I’m still playing some catch up from school work and travel which caused me to take my eye off the ball with respect to the markets.  It happens and when it does I’m always surprised by something that occurred while my mind and body were elsewhere.   The big surprise for me this time around was the disconnection between small and large cap stocks that happened over the past couple of weeks. Over the last two weeks of October the Russell 2000 (RUT) was basically unchanged[...]

  • VIX | Trader Talk | Futures | Nov 1, 2015, 12:39 PM

    The Week in VIX - 10/26 - 10/30

    The Week in VIX - 10/26 - 10/30

    VIX, VIX futures and the S&P 500 all moved higher last week.  It happens, but with a couple of major economic events/numbers behind us (FOMC / 3Q GDP) and stocks moving up (although slightly) it was a bit surprising to see all that green when compiling data for this blog. The curve below is a comparison of generic VIX futures based on the number of days to expiration.  For example, Week 1 for the 10/23 curve was the October 28th contract while on the 10/30 curve it represents the November[...]

  • Market News | Oct 31, 2015, 12:35 PM

    The Week in Volatility Indexes and ETPs - 10/26 - 10/30

    The Week in Volatility Indexes and ETPs - 10/26 - 10/30

    When I do these blogs I get the data, create the graphics and look at the markets.  I share these mundane facts about my ‘process’ to make a point about the diagram below.  Last week we got an FOMC meeting (although one without a press conference) and GDP number behind us without the stock market did not reacting negatively.  We are looking forward to the October employment report that comes out this Friday, but we did get two of the big three economic events behind us. [...]

  • Market News | VIX | Trader Talk | Education | Oct 29, 2015, 10:52 AM

    2015 CBOE RMC Asia Schedule

    2015 CBOE RMC Asia Schedule

    Everyone at CBOE is looking forward to the first Asian version of the popular Risk Management Conference to be held November 30 to December 1 in Hong Kong.  Just today the preliminary schedule was just posted at www.cboermcasia.com which also works for registering to attend. Topics to be covered at the conference include volatility oriented trading strategies, option based portfolio management approaches, how to handle risk management in different volatility environments, and volatility oriented[...]

  • Trader Talk | Trade Ideas | Oct 26, 2015, 2:13 PM

    Earnings This Week - 10/26 - 10/30

    Earnings This Week - 10/26 - 10/30

    Due to travel this blog is going up a little late, apologies all around.  All the numbers below represent 3 years of data, except for those in italics (TWTR, BABA, and GPRO).    

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Oct 18, 2015, 12:36 PM

    The Week in Russell 2000 Trading - 10/12 - 10/16

    The Week in Russell 2000 Trading - 10/12 - 10/16

    Large cap stocks gained and small cap stocks were lower last week with the Russell 1000 (RUI) moving up by 0.77% while the Russell 2000 (RUT) dropped 0.26%.  For the year RUI is down 1.25% and RUT has given up 3.52%. The implied volatility differential finished the week with the CBOE Russell 2000 Volatility Index (RVX) at about a 20% premium to VIX which is pretty close to the average level for this year.  For the moment the risk perception for small cap stocks is at levels[...]

  • VIX | Trader Talk | Education | Futures | Trade Ideas | Oct 17, 2015, 12:05 PM

    The Week in VIX - 10/12 - 10/16

    The Week in VIX - 10/12 - 10/16

    It has been a while since I’ve started out saying we had a parallel shift in the VIX curve.  That’s what we got last week as the market calmed down a bit and the S&P 500 advanced.  The October contract settles on the open this coming Wednesday and went out at about a point premium to spot VIX which has been the norm over the past few years when VIX has been in the mid to low teens. The short dated curve shifted a little more into contango last week.  It[...]

  • VIX | Trader Talk | Education | Futures | Trade Ideas | Oct 17, 2015, 6:57 AM

    The Week in Volatility Indexes and ETPs - 10/12 - 10/16

    The Week in Volatility Indexes and ETPs - 10/12 - 10/16

    VIX closed under 16.00 for the first time since all the hubbub that occurred in late August as the S&P 500 continued to recover last week gaining 0.90%.  Among the four S&P 500 focused volatility Indexes VIX was the biggest loser shedding almost 12%.  I had been keeping a close eye on VXV as the 3 month time frame that VXV measures comes after the December FOMC announcement.  VXV fell a bit relative to VXMT (6 month volatility) which may be a FOMC indicator and may also be[...]

  • Market News | Trader Talk | Trade Ideas | Oct 16, 2015, 10:20 AM

    Earnings Next Week - 10/19 - 10/23

    Earnings Next Week - 10/19 - 10/23

    Next week brings us to the meat of earnings season with almost 60 companies that have weekly options available for trading reporting next week.  With a couple of exceptions (AAL & GOOG) the history below represents the stock price reaction in response to earnings for the past three years.

  • Market News | VIX | Trader Talk | Futures | Oct 11, 2015, 8:30 AM

    The Week in Russell 2000 - 10/5 - 10/9

    The Week in Russell 2000 - 10/5 - 10/9

    The 4.6% gain for the Russell 2000 (RUT) was the biggest one week gain since late October 2014 when (I think) the market was rebounding from an ebola scare.  Large cap stocks participated in the rally with the Russell 1000 (RUI) rising 3.26%, but this lagged the rebound in small cap stocks.  Despite the ‘win’ for RUT, the Russell 2000 still lags the Russell 1000 by over 1% for 2015 (-3.27 vs. -2.00%). If this past week were homecoming at Volatility High School the[...]

  • Market News | Oct 10, 2015, 12:24 PM

    The Week in VIX - 10/5 - 10/9

    The Week in VIX - 10/5 - 10/9

    A return to normalcy occurred last week with the 18% drop in VIX and 3.26% rally in the S&P 500.   Even the seasonal December pattern moderated a bit and we have a textbook contango curve for the first time since August. On the shorter end of the VIX futures spectrum the curve flattened with a little contango with respect to the October 14th contract versus VIX.  Before Weeklys in the VIX space, when volatility is low the Friday before expiration the soon to expire[...]

  • Market News | VIX | Trader Talk | Education | Futures | Oct 10, 2015, 10:22 AM

    The Week in Volatility Indexes and ETPs - 10/5 - 10/9

    The Week in Volatility Indexes and ETPs - 10/5 - 10/9

    In Chicago we are already getting use to the Bears getting pummeled each week.  This past week bears everywhere took it on the chin as the S&P 500 put up the best weekly performance in 2015.  What I find interesting on the chart below relates to VIX, which was down 18.4% for the week, which is actually the fourth worst week for VIX this year, despite VIX beginning the week over 20.00. VXX dropped about 11% and SVXY was up closer to 12% last week.  However, the choppy[...]

  • Market News | Trader Talk | Trade Ideas | Oct 8, 2015, 11:00 AM

    Earnings Next Week - 10/12 - 10/16

    Earnings Next Week - 10/12 - 10/16

    Alcoa reported this week which is the unofficial beginning of earnings season.  Next week several financials release numbers which should be interesting considering the continued inaction by the Fed.  As always the numbers below represent stock price reaction to earnings for the last 3 years.

  • Market News | Oct 6, 2015, 9:00 AM

    VIX Streak over 20.00 Ends at 30 - So Now What? Part 2

    VIX Streak over 20.00 Ends at 30 - So Now What? Part 2

    Yesterday I put up a blog showing what the S&P 500 did over different time periods after a streak where VIX was over 20.00 came to an end.  I got a request to show what VIX did as well, so the numbers show up in the table below. Instead of showing percent changes I show point changes.  There appears to be a little more green on this table that there was red on the S&P 500 table.  It could be that VIX stays a bit elevated after these streaks.