Education Archives - Cboe Blogs

  • VIX | Blogging Options | Trader Talk | Education | Apr 6, 2015, 7:52 AM

    Blogging Options: CBOE Morning Update 4.6.15

    Blogging Options: CBOE Morning Update 4.6.15

    First full trading day in US after abysmal Jobs print Friday.  S&P futures off 13, Russell by 10, DJIA futures lower by 120 points. Gold and Oil up, 10-year near 1.84%.  VIX futures volume on lighter-side in early session.  Much of European markets closed this morning, as Easter a 4-day weekend for many.  FED's Dudley with innocuous comments about FED's future actions, ISM Service Sector released later this morning.  Duke - Wisconsin tonight. Volatility as an asset class Euro[...]

  • Market News | Technical Analysis & Charts | VIX | Education | Mar 27, 2015, 2:15 PM

    Weekly Market Commentary 3.27.15

    Weekly Market Commentary 3.27.15

    When $SPX broke down through the 2090 support level, that was a very negative sign, especially since stocks failed at the old highs.   There is now strong resistance at 2110-2120 (the February and March peaks), as well as at 2090 (again).  As for support, the initial support level will be 2040, the early March lows.  Below that, there is support at 1970-1990, which is the area of the December and January lows. Equity-only put-call ratios continue to remain on sell signals and are[...]

  • Market News | Trader Talk | Education | Futures | Mar 26, 2015, 1:30 PM

    CBOE, C2 & CFE Good Friday Holiday Trading Schedule

    CBOE, C2 & CFE Good Friday Holiday Trading Schedule

    We have another long weekend coming up.  A week from tomorrow, Friday April 3rd is Good Friday. Thursday, April 2nd will have regular trading hours for all products at CBOE, C2 and CFE. Friday April 3rd, CBOE and C2 are closed for business, so there will be no Stock, ETF or Index option trading on that date.  Regular trading will resume Monday morning. On Thursday evening April 2nd, CFE opens its extended trading session at 3:30pm CDT for VIX (VX) Futures and will close at 8:15am Friday,[...]

  • Market News | Technical Analysis & Charts | VIX | Education | Mar 24, 2015, 2:00 PM

    Sentiment Tools: Taking the Temperature of the Market With the VIX, Part 1

    Sentiment Tools:  Taking the Temperature of the Market With the VIX, Part 1

    Random movements in the stock market are very tough to explain but if we can understand the role of sentiment, these moves make sense.  Remember, stocks move along the spectrum of fear and greed, a chart being an excellent portrayal of these emotions.  We can point to several sentiment-related indicators to get a pulse of market players, this is especially useful in the short run.  In part 1 of a series, we'll take a look at some of these and how they impact decisions and market movement. A[...]

  • Technical Analysis & Charts | VIX | Trader Talk | Education | Mar 23, 2015, 2:10 PM

    The Fed Gives A Boost - Weekly Market Outlook

    The Fed Gives A Boost - Weekly Market Outlook

    Thanks to a little help from the Federal Reserve on Wednesday, the market broke out of a three-week-old bearish rut, and in the process may have rekindled a bigger uptrend.  In fact, technically speaking, the uptrend is back underway. We'll handicap the market below.  First, let's run down last week's and this week's economic news. Economic Data There's little doubt as to last week's economic focal point... the release of the minutes from the most recent FOMC meeting. It was an interesting[...]

  • Technical Analysis & Charts | Education | Mar 20, 2015, 10:41 AM

    CBOE Bracketology Round 1 – VXST Index Rose 122.6% in One Week

    CBOE Bracketology Round 1 – VXST Index Rose 122.6% in One Week

    One of the most intriguing features of volatility indexes is that they can have sharp upside moves in times when “traditional” indexes fall in value. For example, during the week of Dec. 12, 2014, the S&P 500® (SPX) and MSCI EAFE® indexes both dropped 3.5%, while the CBOE Short-Term Volatility Index (VXST) rose 122.6% and the CBOE Volatility Index® (VIX®) rose 78.3%. Both of the brackets below show the biggest one-calendar-week upside moves (in % terms) for 8 tradable[...]

  • Technical Analysis & Charts | VIX | Education | Futures | Mar 20, 2015, 9:00 AM

    Weekly Market Commentary 3.20.15

    Weekly Market Commentary 3.20.15

    In figure 1, the support at 2040 and the resistance at the recent all-time highs of 2120 are marked as a trading range.  Until $SPX breaks out of that range, it really doesn't have a trend in place.  To support that conclusion, the indicators are somewhat mixed. Equity-only put-call ratios have remained on sell signals during this latest rally. Breadth hasn't been terrific during this rally, but it was strong enough to pull the "stocks only" oscillator into a mildly overbought[...]

  • VIX | Trader Talk | Education | Futures | Mar 17, 2015, 1:00 PM

    VIX March Settlement Reminder: Wednesday 3.18.15

    VIX March Settlement Reminder: Wednesday 3.18.15

    Settlement Reminder: Today, Tuesday, March 17th is the last trading day for March in the following: VIX, RVX, VXN, GVZ, OVX, VXEEM, VXEWZ, and VXTYN futures* and options. These contracts settle tomorrow, Wednesday morning, March 18th. PLEASE NOTE:  VIX options with an expiration date of March 18, 2015 will cease trading at 3:15 p.m. CT on Tuesday, March 17, 2015. These expiring options will NOT trade during the ETH session on Wednesday, March 18, 2015. * This is in contrast to VIX futures[...]

  • Technical Analysis & Charts | VIX | Education | Mar 16, 2015, 1:30 PM

    Between A Rock & A Hard Place - Weekly Market Outlook

    Between A Rock & A Hard Place - Weekly Market Outlook

    The third weekly loss in a row has brought the broad market down 2.4% from its recent peak.  In the grand scheme of things, it's not much... not even enough to call a full corrective move.  Even so, there are glimmers of hope that the selloff has run its full course (though bear in mind the short-term momentum is technically near bearish). The good and the bad are dissected below, right after a quick examination of last week's economic news and a preview of this week's economic[...]

  • Market News | Trader Talk | Education | Mar 10, 2015, 12:46 PM

    Will Friday's Selloff Have Legs? - Weekly Market Outlook

    Will Friday's Selloff Have Legs? - Weekly Market Outlook

    (Editors Note:  We meant to put this up yesterday morning, very apropos with today's move lower. Though it wasn't necessarily a bullish week (last week), the market was holding up well enough... until Friday's implosion. That one bad day pulled the market under some key support levels, and as such we now have to entertain the possibility that some selling weakness has been opened. And yet, there's still a beacon of hope for a quick rebound. We'll dissect the broad market's odds[...]

  • Technical Analysis & Charts | Education | Mar 9, 2015, 3:00 PM

    RMC Speakers - Volatility of Volatility Rose in Recent Months

    RMC Speakers - Volatility of Volatility Rose in Recent Months

    In the first two months of 2015, the CBOE VIX of VIX Index (VVIX) had an average daily close of 100.2, a higher level than in any of its previous eight full calendar years from 2007 through 2014. On Thursday at the 31st CBOE Annual Risk Management Conference in Carlsbad, expert presentations on Volatility of Volatility (VOV) were delivered by Benn Eifert, Ph.D., Portfolio Manager, Mariner Investment Group and Kambiz Kazemi, Portfolio Manager, Picton Mahoney Asset Management. INTRODUCTION TO INDEXES Before[...]

  • Technical Analysis & Charts | Education | Mar 9, 2015, 11:58 AM

    Selling Volatility Safely:  VIX, VXX, and Other Short Volatility Option Strategies

    Selling Volatility Safely:  VIX, VXX, and Other Short Volatility Option Strategies

    Investors who sell VIX-based products often keep a close eye on contango, and the VIX was in contango on 248 days in 2012 and 219 days in 2014. On Friday at the 31st Annual Risk Management Conference presentations on - Selling Volatility Safely:  VIX, VXX, and Other Short Volatility Option Strategies – were delivered by David Burchmore, Portfolio Manager, Ontario Teachers' Pension Plan, and Rocky Fishman, CFA, Equity Derivatives Strategy, Deutsche Bank Securities. INTRO – VIX IN[...]

  • VIX | Blogging Options | Trader Talk | Education | Mar 9, 2015, 8:00 AM

    Blogging Options: CBOE Morning Update 3.9.15

    Blogging Options: CBOE Morning Update 3.9.15

    Macerich up $5 on takeover bid.  GM announces a $5 Billion buyback. MCD February Sales disappoint.  Overseas stocks mixed to lower.  Volatility as an asset class: RTI International (RTI) is up $12.72 to $40 in the premarket, the supplier of titanium and specialty metal products and services for the commercial aerospace, defense, energy and medical device markets will be purchased by Alcoa (AA) in a stock-for-stock transaction with an enterprise value of $1.5B.  Overall option[...]

  • Education | Futures | Trade Ideas | Mar 7, 2015, 3:34 PM

    Cross-Asset Volatility Discussion at CBOE Risk Management Conference

    Cross-Asset Volatility Discussion at CBOE Risk Management Conference

    One of the final presentations given at the 31st Annual CBOE Risk Management Conference this year was an in depth discussion of volatility across asset classes.   Brandon Bates, Portfolio Manager at BlackRock and Benjamin Bowler, Co-Head of Global Equity Derivatives Research at Bank of America Merrill Lynch co-presented the session titled Leveraging Cross-Asset Volatility Dynamics in Forecasting and Trading. With the emergence of volatility as an asset class it appears that volatility across[...]

  • Market News | Education | Mar 6, 2015, 3:21 PM

    Buzz Gregory Discusses Skew, Term Structure, and Volatility Around the World

    Buzz Gregory Discusses Skew, Term Structure, and Volatility Around the World

    On Friday Krag “Buzz” Gregory, Equity Derivatives Strategist, Goldman Sachs delivered an illuminating presentation on Volatility Around the World. Key topics covered included skew and term structure. CBOE SKEW INDEX – HIGHEST YEAR IN 2014 As an introduction to an overview of Buzz’s remarks, I note that in 2014 the average daily close for the CBOE Volatility Index (VIX) was 14.2 for the second year in a row, and the CBOE SKEW Index had its highest-ever average daily closing[...]