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 | Jul 18, 2015, 1:16 PM

    The Week in VIX - 7/13 - 7/17

    The Week in VIX - 7/13 - 7/17

    VIX closed at 11.95 which is the low for 2015 on Friday and below 12.00 for the first time this year. The week over week drop for VIX was 29% which is the third biggest one week drop in the history of VIX. The curve shifted accordingly, but do note with only two trading days to go the July futures finished the week just about a point higher than spot VIX. I’m away from CBOE this week, but never away from the markets. I did note via my twitter feed the history of the market the day after VIX[...]

  • Market News | Jul 18, 2015, 8:00 AM

    The Week in Volatility Indexes and ETPs - 7/13 - 7/17

    The Week in Volatility Indexes and ETPs - 7/13 - 7/17

    Last week VIX did what I guess it is supposed to do and moved to very low levels to reflect that we are in the summer doldrums.   VIX dropped in a way it usually rallies and was down 29% last week for the third biggest one week drop since 1990. VXST was down over 43% as the curve went quickly from slight backwardation to contango. The long ETP’s got slapped around a bit with VXX losing 17% and the leveraged funds giving up about 33%. The inverse funds moved higher, but only by about[...]

  • Market News | Trader Talk | Futures | Trade Ideas | Jul 16, 2015, 11:37 AM

    Block Trade - $NFLX Butterfly into Earnings

    Block Trade - $NFLX Butterfly into Earnings

    I think just about every trader focused on stocks or equity options is aware that Netflix (NFLX) reported yesterday after the close.  Also we all know that the stock market seemed to like what they heard. I like to focus on earnings and search around for trades that were implemented just before an earnings release. Before jumping to the trade I came across, I want to discuss a couple of pieces of information that may be useful before trading around an earnings report. Every week I post[...]

  • Market News | Education | Jul 14, 2015, 1:25 PM

    Comparing S&P 500 and MSCI EAFE Performance

    Comparing S&P 500 and MSCI EAFE Performance

    CBOE launched option trading on the MSCI EAFE (MXEA) index a couple of months ago. MXEA represents the performance of developed equity markets outside of the United States. There are over 900 stocks contributing to the index that cover over 20 different developed countries. As a former spread trader I always like to take a look at the performance of similar markets. Today I’m going to cover the relationship between MXEA and the S&P 500 (SPX). We have data going back to January 2000 so the[...]

  • Market News | VIX | Trader Talk | Strategy | Jul 13, 2015, 8:35 PM

    RUT Alternative to an IWM Put Spread

    RUT Alternative to an IWM Put Spread

    Every Saturday morning my ritual includes grabbing the latest issue of Barron’s and turning directly to the Striking Price column which is regularly authored by a good friend of CBOE Steve Sears, who is credited with coining term ‘fear index’ for VIX. This weekend another good friend of CBOE, Bill Luby the chief investment officer of Luby Asset Management and the publisher of the VIX and More blog site (www.vixandmore.com) was the guest author of the Striking Price column[...]

  • Market News | VIX | Trader Talk | Strategy | Jul 12, 2015, 8:22 AM

    The Week in Russell 2000 Trading - 7/6 - 7/10

    The Week in Russell 2000 Trading - 7/6 - 7/10

    The week was quite a roller coaster ride for both the large and small cap segments of the equity market. As the week came to an end the Russell 2000 (RUT) was up 0.30% while the Russell 1000 (RUI) lost 0.03%.  As of Friday RUT is 3.93% higher for the year outperforming RUI by 2.61%. The RVX – VIX relationship tested recent lows on Thursday as it is prone to do when global risk is the big market concern.   On Friday, RUT did outperform RUI a bit (up 1.4% versus 1.2%)[...]

  • Market News | Jul 11, 2015, 3:30 PM

    The Week in VIX - 7/6 - 7/10

    The Week in VIX - 7/6 - 7/10

    Nothing on the week over week curve chart shows what really happened last week in the markets. VIX finished the week in line with the previous week’s closing price as did the S&P 500.   However, at one point during the week VIX was just over the psychologically significant 20 level or up 19.4% and the S&P 500 was down about 1.5% from the close on July 2nd. It is worth noting that the shape of the curve below remains pretty steep as we look to the always interesting fourth[...]

  • Market News | VIX | Trader Talk | Education | Futures | Jul 11, 2015, 12:37 PM

    The Week in Volatility Indexes and ETPs - 7/6 - 7/10

    The Week in Volatility Indexes and ETPs - 7/6 - 7/10

    From the pre-Independence day July 2nd close to this past Friday VXST was down 0.73, VIX was up by 0.04, VXV was 0.05 higher and VXMT finished 0.28 higher. VXST is sort of an anomaly as there is a 3-day weekend impact that pushes the index lower. As the week over week change does no justice in showing the actual price action from last week I included the Thursday closing curve to show that last week was anything but boring. Note on the table below both VXX (and the similar funds) and SVXY (plus[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Jul 8, 2015, 9:55 PM

    Bullish, Bearish, and Neutral Trades from Today

    Bullish, Bearish, and Neutral Trades from Today

    One of the fun parts of working at the Options Institute is looking into how large traders react to different market environments. Since today was a pretty exciting day in the markets I decided to look at block trading activity from the end of the day today. The result is a bullish, bearish, and neutral trade executed respectively in the Russell 2000, S&P 500, and VIX option markets today. First, the bullish Russell 2000 trade. With RUT very close to 1228 there was a bullish diagonal spread executed[...]

  • VIX Option Trade Into Expiration

    VIX Option Trade Into Expiration

    CBOE and the CBOE Futures exchange plan on launching VIX Weeklys options and futures respectively over the next couple of months. Usually when new markets start trading we have to do a little wait and see with respect to strategies that large traders are implementing. However, with VIX Weeklys we have over 100 expirations since VIX options were launched and we can look to trading in VIX options and futures that have occurred near expiration. With this in mind I did some digging around on the Monday[...]

  • Market News | Jul 8, 2015, 10:30 AM

    Earnings Next Week - 7/13 - 7/17

    Earnings Next Week - 7/13 - 7/17

    Things finally pick back up in the world of earnings next week with 25 companies reporting that have short dated options available for trading.  All history below is based on the last three years (12 quarters).  Max is the biggest move up, min the biggest stock price drop, Abs Avg is the average move (higher or lower), and Last Q is the stock's reaction to earnings last quarter.  

  • Market News | VIX | Trader Talk | Trade Ideas | Jul 7, 2015, 12:15 PM

    Weekly MSCI Index Review - 7/7/2015

    Weekly MSCI Index Review - 7/7/2015

    Tuesday of each week is the time we have set aside to discuss international markets on the CBOE Options Hub. Recently CBOE launched index option trading on two of the most widely followed equity market indexes that depict performance for equity markets outside the United States. The MSCI EAFE Index (MXEA) measures the performance of equities in developed markets outside of North America and the MSCI Emerging Markets Index (MXEF) focuses on emerging markets such as China, South Korea, and India. The[...]

  • Market News | Jul 6, 2015, 8:17 PM

    Trading Comes Alive and Crosstown Classic This Week

    Trading Comes Alive and Crosstown Classic This Week

    On Thursday I'll be teaming up with Dan Sheridan for a  one day seminar at CBOE focusing on trading Weeklys.  Then on Friday students will be heading to the north side of Chicago to see the Cubs and White Sox meet for the first time in 2015.  More information follows - Trading Comes Alive! Income Opportunities Using Weeklys℠ Chicago Board Options Exchange Thursday, July 9, 2015 8:00 a.m. – 4:15 pm Central Crosstown Classics Ticket for July 10th Included in Seminar Price! Heavy[...]

  • Market News | Jul 5, 2015, 7:00 AM

    The Week in Russell 2000 Trading - 6/29 - 7/2

    The Week in Russell 2000 Trading - 6/29 - 7/2

    During all the market excitement on Monday last week the Russell 2000 dropped 2.6% while the large cap focused Russell 1000 lost 2.1%. The real difference between small cap and large cap stocks occurred after the dust settled from Monday. The Russell 1000 was able to gain 0.9% after to finish the week down 1.2% while the Russell 2000 did a whole lot of nothing and finished the week down 2.5%. This is the first time in a while that large cap stocks have dominated and is a bit surprising since the[...]

  • Market News | Jul 4, 2015, 12:55 PM

    The Week in VIX - 6/29 - 7/2

    The Week in VIX - 6/29 - 7/2

    VIX rallied over 34% on Monday as the Greece situation worsened and global equity markets sold off. The front month July VIX contract gained just under 20%. As the week progressed we gained insight into June economic activity with an unusual Thursday release of the non-farm payroll report. The stock market moved on quickly and VIX and the July future both finished the week with a 16 handle.  The curve, which moved to backwardation on Monday finished the week in contango, but a much flatter[...]