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 | Aug 15, 2015, 10:42 AM

    The Week in VIX - 8/10 - 8/14

    The Week in VIX - 8/10 - 8/14

    The S&P 500 rose slightly last week and the VIX curve was dramatically unchanged. Unchanged is an exaggeration, but in the four years that I have been posting blogs about VIX, this is the smallest week over week change I can remember. Something I have been watching for some time is the futures pricing relative to spot VIX the Friday before settlement. The spread, when very little is going on, is usually about a point of premium in the soon to expire VIX future relative to the index.[...]

  • Market News | VIX | Trader Talk | Futures | Aug 15, 2015, 8:37 AM

    The Week in Volatility Indexes and ETPs - 8/10 - 8/14

    The Week in Volatility Indexes and ETPs - 8/10 - 8/14

    Three out of four volatility indexes calculated using S&P 500 Index options to determine a consistent measure of implied volatility were lower last week. For all of 2015 the father dated volatility indexes have been elevated relative to VXST and VIX. We are now approaching a time where the potential for a rate hike is closing in. That may be the reason VXV held up last week while the other three indexes dropped. The stock market had a rocky ride, but finished the week higher. Everyone’s[...]

  • Market News | Trader Talk | Trade Ideas | Aug 13, 2015, 8:32 AM

    Earnings Next Week - 8/17 - 8/21

    Earnings Next Week - 8/17 - 8/21

    Things are starting to slow down with respect to the earnings calendar, but there are still plenty of trading opportunities next week.  As always the numbers below summarize reactions to earnings over the last 12 quarters.

  • Market News | VIX | Trader Talk | Futures | Aug 9, 2015, 5:49 PM

    Barron's Striking Price Column Highlights VIX Weeklys

    Barron's Striking Price Column Highlights VIX Weeklys

    This past weekend Steven Sears committed the whole Striking Price column in Barron’s to VIX Weeklys. I would strongly suggest checking out the full column, as well as reading it every weekend as it is a great way to learn more about options. Some highlights include – Weekly VIX futures contracts were introduced July 23th and the options are expected to begin trading on October 8th The shorter dated VIX futures are expected (and already have been) to track spot VIX more closely[...]

  • Market News | Aug 9, 2015, 11:04 AM

    The Week in Russell 2000 Trading - 8/3 - 8/7

    The Week in Russell 2000 Trading - 8/3 - 8/7

    The Russell 2000 (RUT) was down 2.57% last week, over twice the drop that occurred in the large cap focused Russell 1000 (RUI). This puts large cap stock performance solidly in the lead relative to small caps in 2015. For the year RUT is now up (a strong word for this) 0.18% while RUI is up 1.25%. We saw a strong move in the relationship between small cap and large cap volatility last week. Probably the best way to measure this is to compare the CBOE Russell 2000 Volatility Index (RVX) with VIX[...]

  • Market News | VIX | Trader Talk | Aug 8, 2015, 2:06 PM

    The Week in Volatility Indexes and ETPs - 8/3 - 8/7

    The Week in Volatility Indexes and ETPs - 8/3 - 8/7

    The over 1% drop in the stock market did not get traders too worried as VIX remains well under 14 and the VXST – VIX – VXV – VXMT curve maintained a distinct ‘normal looking’ curve. In 30 days we will be in early September, which is a time of year that often puts traders more on edge.   VIX did rise over 10% last week in response to the S&P losing 1.25%. As of Friday VXX was about 1/3rd August VIX futures and 2/3rds September VIX. Since the August contract[...]

  • Market News | Trader Talk | Aug 8, 2015, 10:03 AM

    Earnings Next Week - 8/10 - 8/14

    Earnings Next Week - 8/10 - 8/14

    I apologize for the lateness of this post, despite my best efforts I was unable to get the list together before today (Saturday).  The numbers below represent stock price reactions to earnings announcements for the last 12 quarters, except if the font is in italics.  

  • Education | Trade Ideas | Aug 3, 2015, 8:08 AM

    SPX Version of SPY Hedge from Barron's

    SPX Version of SPY Hedge from Barron's

    Over the weekend, there was a discussion of hedging portfolios with options in my favorite column, The Striking Price, which appears every weekend in Barron’s. Steve Sears relayed a reader request to Stephen Solaka who manages money for Belmont Capital out in sunny but dry California. The question was basically, “How do I go about hedging a $1 million portfolio if I am concerned about the equity market over the near term?” The response, formulated when the SPY ETF was trading around[...]

  • Market News | VIX | Trader Talk | Futures | Aug 2, 2015, 8:54 AM

    The Week in Russell 2000 Trading - 7/27 - 7/31

    The Week in Russell 2000 Trading - 7/27 - 7/31

    I was on the road for CBOE and on the other side of the world recently so I missed some of the market action of late. I knew the Russell 2000 (RUT) was lagging, but was honestly surprised to see that the small cap dominated RUT performance for 2015 is basically in line with large cap stocks which is represented by the Russell 1000 (RUI) below.  My impression was that China and Greece (storm that has passed - for the moment) were dominating the news.  However, the relative performance[...]

  • Market News | VIX | Trader Talk | Futures | Aug 1, 2015, 6:25 PM

    The Week in VIX - 7/27 - 7/31

    The Week in VIX - 7/27 - 7/31

    The S&P 500 was up over 1% and both spot VIX and VIX futures suffered the consequences.   Spot VIX lost almost 12% and the August future was down about 6% last week. VIX Weeklys futures were launched a couple of weeks ago and the first short dated contract expires this coming Wednesday on the open. I decided it was time for a quick look at how the nearest term contract has been tracking along with VIX. Day by day changes won’t tell us much so I sent my very competent summer intern[...]

  • Technical Analysis & Charts | VIX | Trader Talk | Futures | Aug 1, 2015, 10:32 AM

    The Week in Volatility Indexes and ETPs - 7/27 - 7/31

    The Week in Volatility Indexes and ETPs - 7/27 - 7/31

    I was reminded of my advancing age several times this past week. I’ll save those incidents for the other grumpy aging men on my block. One of the benefits (let me believe this) of being around for a while is having lived through a variety of market environments. This market got me thinking about John Gotti who was the boss of the Gambino family back in the day. One of his monikers was “The Teflon Don” as he was put on trial three times and acquitted three times. Teflon is a substance[...]

  • Market News | Trade Ideas | Jul 30, 2015, 7:05 PM

    Earnings Next Week - 8/3 - 8/7

    Earnings Next Week - 8/3 - 8/7

    We are coming toward the end of the second quarter reporting period, but still have several names to go.  As always the histories below represent three years with the exception of those in italics.

  • Market News | Trader Talk | Futures | Trade Ideas | Jul 20, 2015, 8:33 AM

    Following Up on The Case for a 24-Hour VIX

    Following Up on The Case for a 24-Hour VIX

    For the second weekend in a row The Striking Price column in Barron’s had me at the headline. Last week, Bill Luby was the guest columnist, and it was about small cap volatility and the Russell 2000. Steve Sears (the guy that came up with the term 'fear index') was back at the helm this week and the words “The Case for a 24-Hour VIX” called out to me to read more. Anyone that has an interest in VIX should take a look at the full article, but here are some highlights. Sears[...]

  • Market News | VIX | Trader Talk | Futures | Jul 19, 2015, 7:20 AM

    The Week in Russell 2000 Trading - 7/13 - 7/17

    The Week in Russell 2000 Trading - 7/13 - 7/17

    With Greece finally behind us (for now…) the global economic picture is a bit more stable. This resulted in equity markets rebounding last week. Large caps benefited from the resolution of the Euro issues and the Russell 1000 (RUI) gained 2.24% placing the large cap benchmark up 3.59% for the year. Small cap stocks were higher as well, but the Russell 2000 lagged gaining 1.20%.   There is still a bit of a spread between small cap and large cap performance for 2015 as[...]

  • Market News | Jul 18, 2015, 6:30 PM

    TYVIX Weekly Review by Catherine Shalen - 7/18/2015

    TYVIX Weekly Review by Catherine Shalen - 7/18/2015

    TYVIX in the Aftermath of the October 15, 2014 Flash Crash On Monday, July 13, staff members from the U.S. Department of Treasury, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, the U.S. Securities and Exchange Commission, and the U.S. Commodity Futures Trading Commission released a joint report on the exceptional Treasury volatility that occurred on October 15, 2014. The behavior of the TYVIX Index since October 2015 provides a new angle to the story.[...]