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.

  • 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[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Nov 28, 2015, 11:59 PM

    Weekly Review - Volatility Indexes and ETPs - 11/23 - 11/27

    Weekly Review - Volatility Indexes and ETPs - 11/23 - 11/27

    Very quiet holiday week.  There really isn’t much else to say, but it is interesting that VIX remains over 15.00.  I’m also attributing the rise in VXST to getting a holiday shortened week behind us.  Man I’m glad it’s not my job to fill up a business network with programming which must have been a heck of a challenge last week, especially on Friday. The funds were quiet as well, but you have to snicker when a 2.7% change (see VXX below) is considered[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | Nov 22, 2015, 2:13 PM

    The Week in Russell 2000 Trading - 11/16 - 11/20

    The Week in Russell 2000 Trading - 11/16 - 11/20

    Large caps ruled the week with the Russell 1000 (RUI) gaining over 3%.  Small cap stocks were no slouches, but the Russell 2000 did lag the Russell 1000 gaining 2.5%.  For the year RUI is up 1.21% and RUT is down 2.45%.  However, at the end of this blog I’ll note some statistics that show RUT still has a shot at victory in 2015. Both the CBOE Russell 2000 Volatility Index (RVX) and VIX were lower last week based on the rally in the equity markets.  RVX dropped[...]

  • VIX | Trader Talk | Education | Futures | Trade Ideas | Nov 21, 2015, 1:37 PM

    The Week in VIX - 11/16 - 11/20

    The Week in VIX - 11/16 - 11/20

    The VIX term structure returned to normal from slight backwardation last week as the S&P 500 rose over 3%.  Two years ago a 3% move in the S&P 500 probably would have resulted in VIX under 12.00, but these are different times and with a rate hike looming down to the mid 15’s is the best we can expect. The short dated term structure ended the week in slight contango which has been the norm when VIX drops since the futures were launched back in July.  The curve[...]

  • Market News | VIX | Trader Talk | Strategy | Nov 21, 2015, 11:37 AM

    The Week in Volatility Indexes and ETPs - 11/16 - 11/20

    The Week in Volatility Indexes and ETPs - 11/16 - 11/20

    The shift for the VXST – VIX – VXV – VXMT curve was dramatic, but sort of what we have become use to in this buy on the dip culture.  VIX finished the week under 16.00, which voids a prediction that I had for the rest of the year.  I felt concerns about a December rate hike and the impact on stocks into 2016 would keep VIX elevated for the final few weeks of the year. VXX and the other long funds came under pressure based on the drop in VIX and VIX futures[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | Nov 17, 2015, 3:15 PM

    Block Trade Analysis - VIX Weeklys Option Trades

    Block Trade Analysis - VIX Weeklys Option Trades

    Tomorrow is November VIX settlement, but that hasn’t stopped some short term VIX traders from putting on new positions, in fact it may have encouraged them to do some trading. I ventured down to the trader floor late today to see what may be going on in the VIX Weeklys options set to settle on the open next Tuesday.  For those that know VIX well, you know that VIX futures and options normally settle on a Wednesday, 30 days before an expiration Friday.  However, December 25th is a[...]

  • Market News | Trader Talk | Trade Ideas | Nov 15, 2015, 5:50 PM

    The Week in Russell 2000 Trading - 11/9 - 11/13

    The Week in Russell 2000 Trading - 11/9 - 11/13

    The tough week for stocks was harder on small caps than large caps as the Russell 2000 (RUT) was down 4.43% and the Russell 1000 (RUI) dropped 3.63%.  RUT has a lot of work to do to catch up with RUI as the gap is at almost 3% between RUI (down 1.92%) and RUT (down 4.83% for the year). We tend to see VIX rise relative to the CBOE Russell 2000 Index (RVX) in times of turmoil.  That happened in August to the point of historically extreme relative RVX – VIX levels. [...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Nov 15, 2015, 10:40 AM

    The Week in VIX - 11/9 - 11/13

    The Week in VIX - 11/9 - 11/13

    VIX managed a finish over 20 as Friday’s market action raised the level of concern among market participants.  You have to wonder if Friday August 21st and the follow through on the 24th is still fresh in trader’s minds. The short term curve flattened out which seems to be the norm when VIX move higher, since VIX Weeklys are relatively new. Mid-day on Friday while VIX was still under 20.00 (19.60 to be exact), there was a buyer of the VIX Dec 25 Calls who paid 1.10 and[...]