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 | Sep 29, 2015, 8:24 AM

    Correlations Between Stocks and Between Sectors

    Correlations Between Stocks and Between Sectors

    Chris Rodarte from Pine River Capital Management and Tim Edwards from S&P Dow Jones Indicies teamed up for a discussion of Correlations Between Stocks and Between Sectors at CBOE’s Risk Management Conference in Geneva Switzerland. Edwards kicked things off with an overview of the history of correlation in some major markets and noting the strong relationship between correlation and volatility.  He noted that volatility moves up when markets are correlated, but at times the magnitude[...]

  • Market News | Sep 29, 2015, 7:19 AM

    Panel on Trends in Institutional Options and Volatility Product Usage

    Panel on Trends in Institutional Options and Volatility Product Usage

    The first session after lunch today at the CBOE Risk Management Conference in Geneva featured a panel discussion about Institutional Option and Volatility Product Usage.  The panel was moderated by Chris Limbach, Head of Fiduciary Advice, PGGM Institutional Business.  The participants were – Jerome Berset, Head of Hedge Funds Research at EFG Asset Management Kevin Duggan, Vice President of Equity Products, Ontario Teacher’s Pension Plan Christoph Gort, Partner, SIGLO Capital[...]

  • Market News | Sep 29, 2015, 4:42 AM

    More Value in Long Dated Options Than Meets the Eye Presentation at RMC

    More Value in Long Dated Options Than Meets the Eye Presentation at RMC

    Kokou Agbo-Bloua, Managing Director, Global Head of Flow Strategy & Solutions from Societe Generale spoke about uses for longer dated options today at CBOE’s Risk Management Conference in Switzerland. His session was titled, More Value to Long-Dated Options than Meets the Eye. I was particularly interested to hear his talk since shorter dated options seem to be getting all the attention these days. The talk began noting that when comparing long-dated and short-dated options there are distinct[...]

  • Market News | Sep 29, 2015, 3:36 AM

    Paul Donovan Global Economist from UBS Keynote Address at RMC

    Paul Donovan Global Economist from UBS Keynote Address at RMC

    Paul Donovan, the Global Economist from UBS delivered a speech titled, “As good as it gets?” to start the day in Geneva for the European version of CBOE’s RMC Conference today. Donovan began his session talking about the US economy which he says is relatively strong. He notes that the labor market in the US is seeing an increase in pay for semi-skilled labor which is about 40% of the labor in the US. He notes that 30% of the labor force in the US can be defined as unskilled labor[...]

  • Market News | Sep 28, 2015, 11:49 AM

    CBOE RMC Europe Day 1 Recap

    CBOE RMC Europe Day 1 Recap

    The first day of Risk Management Europe is in the history books.  Today was more like a half day, starting at 12:30 and running to 4:30, but in that short period of time we heard from four individual speakers as well as a lively panel discussion. Bill Speth from CBOE kicked things off discussing the suite of strategy indexes that are offered by CBOE.  Most traders are familiar with the CBOE S&P 500 BuyWrite Index (BXM) which depicts the performance of a consistent covered call strategy[...]

  • Market News | Sep 28, 2015, 9:53 AM

    Panel Discussion on US Options and Volatility Market Structure

    Panel Discussion on US Options and Volatility Market Structure

    Day one of the 2015 European version of CBOE’s Risk Management Conference concludes with a panel discussion on the market structure of options and volatility in the US which will was moderated by Philip Stafford from Financial Times.  Topics to be covered include the demographics of users of these markets, a comparison of OTC versus listed products and ETF versus single stock options.  The panel includes Nikolas Alexandrou from Legal & General Investment Management, William J.[...]

  • Market News | Sep 28, 2015, 8:25 AM

    Harvesting Volatility Risk Premium as Volatility Starts to Turn

    Harvesting Volatility Risk Premium as Volatility Starts to Turn

    Bernhard Brunner from Allianz Global Solutions and Abhinandan Deb from Bank of America Merrill Lynch teamed up for the second presentation session at the 4th Annual CBOE Risk Management Conference in Europe. Some highlights from Deb’s portion of this session – The ultra low volatility environment appears to have come to an end and we should experience a ‘higher floor’ for volatility going forward He noted that emerging markets now represent 39% of global GDP up from 20% in[...]

  • VIX | Trader Talk | Education | Futures | Trade Ideas | Sep 27, 2015, 2:20 PM

    New White Paper Discusses Volatility as a Small Cap Portfolio Hedge

    New White Paper Discusses Volatility as a Small Cap Portfolio Hedge

    A new white paper from our partners over at Russell Indexes Research discusses the merits of using futures on the CBOE Russell 2000 Volatility Index (RVX) to hedge small cap risk.  In the paper “RVX futures as a hedge for small cap-specific risk” Barry Feldman covers volatility products that are currently available to hedge downside risk in equity portfolios and then goes on to compare using VIX futures and RVX futures to hedge a small cap focused portfolio. Feldman uses the market[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Sep 27, 2015, 7:01 AM

    The Week in Russell 2000 Trading - 9/21 - 9/25

    The Week in Russell 2000 Trading - 9/21 - 9/25

    For the previous couple of weeks small cap stocks were the place to be.  That fad came to an abrupt end last week as the Russell 2000 (RUT) dropped almost 3.5%.  Over the same period of time the large cap focused Russell 1000 (RUI) was lower by 1.57%.  In addition to trailing RUI for the week, RUT is now 6.8% lower for 2015 while the RUI is down 5.92%. For a while it appeared the CBOE Russell 2000 Volatility Index (RVX) was going to return to ‘normal’ levels when compared[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Sep 26, 2015, 2:05 PM

    The Week in VIX - 9/21 - 9/25

    The Week in VIX - 9/21 - 9/25

    The S&P 500 lost just over 1% and VIX rose 6% and the standard near dated futures were higher as well, but lagged a bit.  This resulted in the curve a bit more backward than it was a week ago. On the short dated futures front the contract expiring this coming Wednesday finished the week at a small discount to VIX while a week ago the contract that settled this past Wednesday was at a slight premium to VIX.  I’m still getting familiar with the short dated curve which move from[...]

  • Market News | VIX | Trader Talk | Education | Futures | Sep 26, 2015, 10:44 AM

    The Week in Volatility Indexes and ETPs - 9/21 - 9/25

    The Week in Volatility Indexes and ETPs - 9/21 - 9/25

    With the drop in the S&P 500 last week the market continues to be on edge.  This is reflected in the uniform move higher in the VXST – VIX – VXV – VXMT curve from last week.  Note the ‘bump’ remains on the VXV data point which represents 3 month implied volatility.  This time frame is the first on the chart below to come after the last two Fed meetings in 2015.  It will be interesting to see if a change in the shape curve coincides with the approach[...]

  • Market News | Education | Trade Ideas | Sep 24, 2015, 8:26 PM

    RMC Europe Day 3 Preview

    RMC Europe Day 3 Preview

    The final day of the Fourth Annual European Version of CBOE’s Risk Management Conference gets started with a keynote address from Edward Chancellor a noted financial author and historian.  Chancellor’s address is titled, “The Consequences of Extraordinary Monetary Policy – An Historical Perspective on the Current Environment”. After the keynote address the balance of the morning is filled with a wide variety of presentations.  Hitendra Varsani from Morgan Stanely[...]

  • Market News | Strategy | Trade Ideas | Sep 24, 2015, 10:30 AM

    Earnings Week of 9/28 - 10/2

    Earnings Week of 9/28 - 10/2

    The calendar is light again as we move into early October next week.  Enjoy the silence because the following week we start to see the beginnings of third quarter earnings.  The numbers below represent historical stock price reactions in response to earnings reports for the last three years.

  • Market News | VIX | Trader Talk | Education | Sep 24, 2015, 1:51 AM

    RMC Europe Day 2 Preview

    RMC Europe Day 2 Preview

    The second day is always the most jam packed day at Risk Management and this year’s European stop in Geneva is full of thought provoking presentations. The day begins with a welcome address from Ed Provost, President and COO of CBOE Holdings.  The welcome address normally touches on new product initiatives and I look forward to finding out what CBOE has in store.  Paul Donovan, the Global Economist from UBS follows the welcoming address delivering a presentation titled, “It[...]

  • Market News | Sep 21, 2015, 5:08 PM

    RMC Europe Day 1 Preview

    RMC Europe Day 1 Preview

    On Monday September 28th the European version of CBOE’s Risk Management Conference gets underway in Geneva, Switzerland. The conference kicks off with Matt Moran and Bill Speth from CBOE discussing the wide variety of Benchmark Indexes calculated and disseminated by CBOE.  The theme to this discussion could be something old and something new.  CBOE was the pioneer in creating strategy benchmark indexes with the CBOE S&P 500 BuyWrite Index.  This and a handful of other established[...]