Education Archives - Cboe Blogs

  • Market News | Technical Analysis & Charts | VIX | Education | Futures | Feb 27, 2015, 1:10 PM

    Weekly Market Commentary 2.27.15

    Weekly Market Commentary 2.27.15

    (Editors Note:  For those attending Traders Expo New York at the Marriott Marquis this weekend, please stop by and say hello to Larry McMillan and his group.  Russell Rhoads from the Options Institute at CBOE will be at Traders Expo as well). The stock market continues to move higher, albeit at a very slow pace. That makes the $SPX chart bullish, of course, and it will remain bullish as long as $SPX holds above support.  The highest support level is the 2090-2100 range that $SPX traded[...]

  • Market News | Blogging Options | Trader Talk | Education | Feb 26, 2015, 8:00 AM

    Blogging Options: CBOE Morning Update 2.26.15

    Blogging Options: CBOE Morning Update 2.26.15

    Big News at CBOE this morning, with CBOE announcing licensing agreement with London Stock Exchange Group (LSEG), to develop and list options based on more than two dozen FTSE and Russell indices and new products as well.   Scroll down to previous blog to get the details, we're excited about this. Weekly Claims rose 31K, the most in 14 months.  US stock futures have turned lower, Oil off almost 3%, near $49.50bbl. Volatility as an asset class Salesforce.com (CRM) is up $7.73 to $70.60[...]

  • Market News | Education | Feb 25, 2015, 7:35 PM

    Tools to Help Manage Russell 2000 Portfolios: (1) RUT Index Options; (2) BXR BuyWrite Index, and (3) RVX Vol Futures and Options

    Tools to Help Manage Russell 2000 Portfolios: (1) RUT Index Options; (2) BXR BuyWrite Index, and (3) RVX Vol Futures and Options

    The Russell 2000® Index (RUT) hit an all-time record daily closing high of 1223.98 on February 24. Some investors still are bullish on the prospects for small-cap stocks and the U.S. economy, particularly in light of low energy prices. Other investors have expressed concern about these points - (1) For the past year the price-to-earnings ratio for the Russell 2000 Index has been slightly higher than its 10-year average of 16.3 (source: Small Cap Perspectives by Russell Indexes (Dec. 2014)); [...]

  • Education | Strategy | Trade Ideas | Feb 24, 2015, 9:30 AM

    Options Trading Strategies: Lessen Volatility on your Portfolio

    Options Trading Strategies:  Lessen Volatility on your Portfolio

    Random price movements leave us with very little edge when it comes to reading the charts and technical's.  Nevermind fundamental analysis, which is simply impossible to explain a how stock can move violently after a news event.  The market is simply designed around accumulation and distribution, seen very clearly on a price and volume chart.  Yet, when these buyers and sellers are pulled in each direction by the market there is an uneasy feeling about participating. The erratic behavior[...]

  • Technical Analysis & Charts | VIX | Trader Talk | Education | Feb 23, 2015, 1:45 PM

    Pretty Clear Breakout Amid Valuation Challenges - Weekly Market Outlook

    Pretty Clear Breakout Amid Valuation Challenges - Weekly Market Outlook

    It wasn't necessarily a huge gain for the market last week, but it was an important one. Most indices tiptoed into new-high (record high) territory on Tuesday, and after stalling for a couple of days then made a bold thrust into record high territory again on Friday. All told, last week's close of 2110.3 for the S&P 500 (SPX) (SPY) translated into a 0.6% gain for the holiday-shortened week. Though valuation challenges are going to make it tough for stocks to continue rallying, from the technical[...]

  • VIX | Trader Talk | Education | Futures | Feb 21, 2015, 10:53 AM

    The Week in Volatility Indexes and ETPs - 2/16 - 2/20

    The Week in Volatility Indexes and ETPs - 2/16 - 2/20

    Usually it is pretty easy for me to come up with something new to say regarding what went on the volatility markets last week. However, it has been a lot of the same for a pretty long time now. We have now experienced three all-time highs for the S&P 500 in 2015, which is three more than some forecasters thought we’d see, and VIX is working down to levels we were accustomed to over the past couple of years. Friday’s VIX close of 14.30 is just a tad higher than the average VIX close[...]

  • Trader Talk | Education | Feb 19, 2015, 2:50 PM

    Weekly Weekly's Option Report for 2.19.15

    Weekly Weekly's Option Report for 2.19.15

    // I'm Angela Miles covering weekly options. Tomorrow, traditional options expire and next Friday Feb. 27 it's a Weekly's expiration. A busy earnings week is ahead starting Monday with SINA. The options paper is surprisingly light in the early going and the market is wide in SINA. That is likely to pick up into earnings the Chinese internet company tends to be popular with traders. The straddle at the 38 strike prices in at[...]

  • VIX | Education | Futures | Feb 19, 2015, 2:00 PM

    CBOE Risk Management Conference is Two Weeks Away

    CBOE Risk Management Conference is Two Weeks Away

    I received two inquiries this morning about CBOE's 31st Annual Risk Management Conference (RMC), March 4 - 6, 2015 in Carlsbad, California.  It is being held at the Park Hyatt Aviara, along the Pacific Ocean, 25 miles North of San Diego California. The agenda, topics, speakers and registration forms are available at http://www.cboermc/agenda.  There is still some space available at CBOE RMC. This is considered the premiere financial industry conference designed for institutional users of[...]

  • Anticipating MSCI EAFE Index Option Price Behavior

    Anticipating MSCI EAFE Index Option Price Behavior

    Over the next few weeks there is going to be a lot going on at CBOE. The Options Institute will be turning 30 soon, VIX and SPX option hours are going to be expanded to a 2:00 am Chicago opening, and the always informative US version of the CBOE Risk Management Conference will be held in early March. However, what is on the horizon that has me the most excited is the launch of index option trading on two of the widely followed MSCI family of indexes. As a side note - my interest in new[...]

  • VIX | Trader Talk | Education | Futures | Feb 17, 2015, 1:45 PM

    VIX February Settlement Reminder: Wednesday 2.18.15

    VIX February Settlement Reminder: Wednesday 2.18.15

    Settlement Reminder: Today, Tuesday, February 17th is the last trading day for February in the following: VIX, RVX, VXN, GVZ, OVX, VXEEM, VXEWZ, and VXTYN futures and options. These contracts settle tomorrow, Wednesday morning, February 21st. We will post the settlement values when they are released tomorrow morning.

  • Blogging Options | Trader Talk | Education | Feb 17, 2015, 12:51 PM

    CBOE Mid-Day Update 2.17.15

    CBOE Mid-Day Update 2.17.15

    Stocks regained their footing and are now on the plus side.  Stories out of Europe of Greece taking a softer stance in negotiations with the EU are being told.   But reports of Ukraine truce in jeopardy putting damper on rally.  Economic numbers released this morning on weak side. Goodyear Tire (GT) is up $0.68 to $26.59 after reporting Q4 EPS excl items 59c, compared to consensus 58c. February call option implied volatility is at 37, March is at 27, April is at 30; compared to its[...]

  • Technical Analysis & Charts | VIX | Education | Feb 17, 2015, 9:45 AM

    Textbook Breakout, Will It Confirm? - Weekly Market Outlook

    Textbook Breakout, Will It Confirm? - Weekly Market Outlook

    While most everyone knows last week was a good one for the market, it may not be clear just how eventful it really was.  The S&P 500's (SPX) (SPY) 2.0% gain last week carried the index to record highs and a record high close. On the surface it's technically bullish, so we'll take the clue at face value.  We'll also point out, however, most of the recent surges like last week's ended up turning tail pretty quickly.  We'll still need to keep things on a short leash until this breakout[...]

  • Market News | Technical Analysis & Charts | Education | Feb 13, 2015, 1:45 PM

    Weekly Market Commentary 2.13.15

    Weekly Market Commentary 2.13.15

    The Standard & Poors 500 Index ($SPX) has finally broken out of the 1990-2065 trading range that had contained it for nearly two months. The breakout was not easily achieved, nor is it uniformly confirmed by all of the other indicators, but it is in place. As for support, there should be ample support at 2065 and at several levels below that, all the way to the bottom of the trading range, at 1990. Equity-only put-call ratios rolled over to buy signals a week ago Tuesday. You can see from the[...]

  • Trader Talk | Education | Feb 12, 2015, 1:54 PM

    Weekly Weekly's for 2.12.15

    Weekly Weekly's for 2.12.15

    // Apple officially dominates the world in terms of market cap and it’s a major play in weekly options. I’m Angela Miles reporting today on weekly options expiring this Friday, the 13th. Next Friday is a traditional options expiration. Traders and investors are taking a shine to Apple this week as the stock breaks out to new highs. Today AAPL is trading around $126. Plenty of call buyers are moving into the market[...]

  • Market News | Education | Feb 10, 2015, 2:00 PM

    President's Day Trading Schedule Next Monday, 2/16

    President's Day Trading Schedule Next Monday, 2/16

    We have a long weekend coming up.  Monday is President's Day.  President's Day is the third Monday of February. This Friday, February 13th will have regular trading hours for all products at CBOE, C2 and CFE. On Monday February 16th, 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 Tuesday morning. On Sunday evening Feb. 15th,  CFE opens its extended trading session at 5:00pm CST for VIX (VX)[...]