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.

  • VIX | Trader Talk | Trade Ideas | Jul 16, 2017, 10:24 AM

    Weekend Review of VIX Options and Futures - 7/10/2017 - 7/14/2017

    Weekend Review of VIX Options and Futures - 7/10/2017 - 7/14/2017

    VIX finished the week at the lowest close since 1993, but the two lower closes came during a holiday week so I’m considering consulting with other VIX watchers with respect to if this is basically an all-time low.  Note the dramatic move in the July contract that goes off the board on the open Monday. The most exciting activity we got from VIX came around lunchtime on Tuesday.  Many traders may have miss VIX running to the mid-11’s and the July contract trading around 12.50. [...]

  • VIX | Trader Talk | Trade Ideas | Jul 16, 2017, 8:54 AM

    Weekend Review of Volatility Indexes and ETPs - 7/10/2017 - 7/14/2017

    Weekend Review of Volatility Indexes and ETPs - 7/10/2017 - 7/14/2017

    We only have data going back to the 2007 – 2008 period for the non-VIX SPX related indexes on the diagram below.  VXST, VXV, and VXMT all made all-time lows, based on the history we have to work with, on the close Friday.  VIX closing at 9.51 was the third lowest on record.  However, the two instances of lower closing prices for VIX occurred on December 22nd and 23rd of 1993 (9.38 and 9.41).  In December 1993, the 24th was a market holiday as Christmas fell on the 25th. [...]

  • Jul 11, 2017, 2:42 PM

    What's Trading Now? Amazon on Prime Day (AMZN)

    What's Trading Now? Amazon on Prime Day (AMZN)

    Other trades of note: General Electric (GE) at 26.20, a Bull Call Spread traded 18,918 times. The trader bought the Aug 18th 27/29 spread paying 26 cents. Utilities Select Sector SPDR ETF (XLU) at 51.31, a Risk Reversal traded 10,000 times. The trader sold the Dec 15th 50 Puts and bought the Dec 15th 53 Calls for a credit of 58 cents.   Western Digital (WDC) at 91.96, a 1x2 Ratio Spread traded. The trader sold 2,500 Jul 21st 89 Calls at 4.05 and bought 5,000 Jul 21st 93 Calls for 1.82,[...]

  • Market News | Trader Talk | Trade Ideas | Jul 8, 2017, 10:54 AM

    Weekend Review of Russell 2000 Options and Volatility - 7/3/2017 - 7/7/2017

    Weekend Review of Russell 2000 Options and Volatility - 7/3/2017 - 7/7/2017

    Small and large cap stocks finished week in what I will call a statistical tie performance wise.  The Russell 1000 (RUI) gained 0.02% while the Russell 2000 (RUT) was up 0.03%.  If this were an election RUI supporters would be calling for a recount.  I’m pretty convinced RUT is poised for a period of catching up to RUI and I looked smart on Monday as RUT gained 0.80% to RUI’s 0.25% rise, but with an increase in market volatility RUT fell back in line with RUI. The CBOE[...]

  • VIX | Trader Talk | Trade Ideas | Jul 8, 2017, 10:50 AM

    Weekend Review of VIX Options and Futures - 7/3/2017 - 7/7/2017

    Weekend Review of VIX Options and Futures - 7/3/2017 - 7/7/2017

    One a week over week basis VIX didn’t do very much, rising 0.01.  This did occur after VIX visited the mid-12’s on Thursday.  But like all moves higher in VIX lately, it was a short-lived rally.  What is interesting below is the gain in futures.  A week ago, I was talking about how the curve was in a mini-flatting phase.  However, the futures all moved up a bit more than VIX which may be something we look back at as an early indication that the bull market was[...]

  • VIX | Trader Talk | Trade Ideas | Jul 8, 2017, 10:46 AM

    Weekend Review of Volatility Indexes and ETPs - 7/3/2017 - 7/7/2017

    Weekend Review of Volatility Indexes and ETPs - 7/3/2017 - 7/7/2017

    The short end of the SPX volatility spectrum dropped last week which following a holiday-ish weekend is a little surprising to me.  Maybe getting employment out of the way pushed VXST lower relative to the other indexes.  Also note VXV and VXMT outperformed VIX to the upside.  Take my word on this, VXV often leads VIX and is worth keeping an eye on.  The long funds had a good wee with the unleveraged funds gaining over 2% and the leverage long funds rising by almost 5%. [...]

  • Earnings | Jul 6, 2017, 3:37 PM

    Earnings Week of 7/10/2017 - 7/14/2017

    Earnings Week of 7/10/2017 - 7/14/2017

    We are on the cusp of second quarter earnings with three big banks reporting before the open this coming Friday (C, JPM, WFC).  The numbers below represent the last three year's of stock price reactions to earnings.  Finally, the release dates and times have not been confirmed. 

  • VIX | Trader Talk | Trade Ideas | Jul 2, 2017, 4:01 PM

    Weekend Review of Volatility Indexes and ETPs - 6/26/2017 - 6/30/2017

    Weekend Review of Volatility Indexes and ETPs - 6/26/2017 - 6/30/2017

    I’ve been traveling like a madman on behalf of CBOE in June.  I try my best to keep up with the markets when I’m out and about, but sometimes the catch up occurs outside of real time.  This weekend is one of those catch up weekends.  I was aware of the VIX move over 15.00 (who wasn’t?) and that VIX was a bit higher than it had been for most of 2017 to finish the week.  What surprised me was the level of VXST on Friday. VXST is a measure of 9-day volatility expectations[...]

  • VIX | Trader Talk | Trade Ideas | Jul 2, 2017, 11:57 AM

    Weekend Review of VIX Futures and Options - 6/26/2017 - 6/30/2017

    Weekend Review of VIX Futures and Options - 6/26/2017 - 6/30/2017

    VIX had quite a midweek move rising above 15.00 for a very short period of time before settling at 11.18 to end the week.  Note the VIX action didn’t have much of an impact on the futures contracts which can be attributed to the steep nature of the curve going into last week.  I spoke about the following trade on the Vol Views podcast this past Friday.  However, it was such a great use of VIX Weeklys that I wanted to repeat the trade here.  On Monday last week, with VIX[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jul 2, 2017, 11:14 AM

    Weekend Review of Russell 2000 Options and Volatility - 6/26/2017 - 6/30/2017

    Weekend Review of Russell 2000 Options and Volatility - 6/26/2017 - 6/30/2017

    Small caps in the form of the Russell 2000 (RUT) were up slightly last week while the Russell 1000 (RUI) was down slightly.  Friday marked the end of the second quarter.  Both RUT and RUI were higher for the second quarter with RUT gaining 2.12% while the large cap focused RUI was 2.55% higher.  We all know RUT had stellar performance from election day to the end of 2016 on both and absolute and relative basis when compared to RUI.  However, RUT has consistently underperformed[...]

  • VIX | Trader Talk | Trade Ideas | Jun 25, 2017, 9:00 AM

    Weekend Review of Volatility Indexes and ETPs - 6/19/2017 - 6/23/2017

    Weekend Review of Volatility Indexes and ETPs - 6/19/2017 - 6/23/2017

    VXST was slightly higher while the rest of the SPX related volatility indexes dropped last week.  All moves were relatively small as we have truly entered the summer doldrums, at least for broad based index volatility. There’s very little exciting on the table below.  TYVIX bumped up slightly, but is still at very low levels.  VVIX remaining over 80.00 is interesting as traders may continue to take advantage low VIX to get long volatility exposure through buying calls or spreads[...]

  • VIX | Trader Talk | Trade Ideas | Jun 24, 2017, 7:13 PM

    Weekend Review of VIX Futures and Options - 6/19/2017 - 6/23/2017

    Weekend Review of VIX Futures and Options - 6/19/2017 - 6/23/2017

    VIX was a bit lower to end the week and the curve moved down as well.   We retired June last week and now July is the front month and is at a premium of just over 1.80 to finish the week.  Before getting into a trade I would like to point out some heavy activity that abounded last week in the VIX Weekly options expiring this coming week.  There was a pretty big buyer of the VIX Jun 28th 19, 20, and 21 Calls paying 0.10 for the 19’s and 0.05 for both the 20’s and[...]

  • VIX | Trader Talk | Trade Ideas | Jun 24, 2017, 6:55 PM

    Weekend Review of Russell 2000 Options and Volatility - 6/19/2017 - 6/23/2017

    Weekend Review of Russell 2000 Options and Volatility - 6/19/2017 - 6/23/2017

    The Russell 2000 (RUT) was up by 0.57% last week while the large cap focused Russell 1000 (RUI) gained only 0.23%.  For the year RUT is now up 4.25% while RUI has gained 8.84% as large cap stocks continue to dominate 2017 after the huge outperformance of small cap stocks from election day to the end of 2016.  On Monday RVX closed below 14.00 for the first time in years.  Finishing the day at 13.89 was also a 2017 low for RVX (kind of makes sense if we haven't been below 14.00 for[...]

  • Trader Talk | Jun 21, 2017, 12:57 PM

    Sixth Annual CBOE RMC Europe Set for London in September

    Sixth Annual CBOE RMC Europe Set for London in September

    Today may be the longest day of the year, but I’m already looking forward to a post-Labor Day event, specifically the 6th Annual European version of CBOE’s Risk Management Conference which will be held September 11th through 13th.   This year we will be visiting a new location just outside London, The Grove Hotel which appears to be an ideal setting for discussing all things derivatives and volatility.  Day one kicks off with a discussion titled New Developments in Options[...]

  • Trader Talk | What's Trading | Jun 19, 2017, 3:44 PM

    What's Trading Today? FB Bull Put Spread...

    What's Trading Today?  FB Bull Put Spread...

    Facebook Bull Put Spread With FB trading at 151.95 someone sold 200 FB Jun 30th 152.50 Puts for 2.44 and bought the FB Jun 30th 146.00 Puts for 0.60 and a net credit of 1.84.  A quick summary appears in the video below. At expiration the net result with FB above 152.50 would be a profit of 1.84, equal to the credit taken in on the trade.  The worst case scenario is a loss of 4.66 and this trade has a break-even of 150.66.    Other trades of note: With Bank of America (BAC)[...]