Education Archives - Cboe Blogs

  • 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)[...]

  • Trader Talk | Education | Feb 10, 2015, 9:45 AM

    The Market is Mired in a Confidence Crisis

    The Market is Mired in a Confidence Crisis

    There really is no other way to explain the twists and turns of this market other than increasing doubts that higher prices can continue. We're not talking about outrageous valuations and lack of investing control as we saw back in the late 90's. No, I am referring to self-doubt and the confidence crisis that was created from the global financial collapse just six short years ago. The confidence built by the Fed through several monetary programs reached peak levels recently. While we tend to like[...]

  • Education | Strategy | Feb 9, 2015, 2:34 PM

    New White Paper Explores a Leveraged Approach Applying the CBOE S&P 500 PutWrite Index

    New White Paper Explores a Leveraged Approach Applying the CBOE S&P 500 PutWrite Index

    As a follow up to a BXY white paper we produced a few months ago, Mark Sebastian, Hannah Chody, and I just completed “A Leveraged Portfolio Management Approach Applying The CBOE S&P 500 PutWrite Index”. Highlights include – An analysis of PUT returns versus the total return for the S&P 500 over the last 26 years Examinations of how leveraging PUT returns can result in superior absolute and risk adjusted returns A demonstration of how to implement a leveraged PUT strategy The[...]

  • VIX | Trader Talk | Education | Futures | Feb 9, 2015, 1:45 PM

    SPX Range & Oil Key Juncture - Weekly Market Outlook

    SPX Range & Oil Key Juncture - Weekly Market Outlook

    Despite Friday's modest stumble, last week was clearly a good one for the market, bringing it back from the brink of a significant correction and putting it back within reach of a significant breakout.  Yet, as has been the case too many times over the past couple of months, the bulls just couldn't deliver the knockout blow to the bears when they needed to the most.  This isn't to say it's not going to happen.  It is to say, however, it's definitely not a done deal and a move back[...]

  • Weekly Market Commentary 2.6.15

    Weekly Market Commentary 2.6.15

    The stock market has had a strong week. Even so, $SPX remains within the general confines of the 1990-2065 trading range, on a closing basis. We still await a breakout from that range in order to establish an intermediate-term trend. In something of a surprise, both equity-only put-call ratios rolled over to buy signals after Tuesday's trading this week. The computer programs that we use to monitor these charts were right on top of this new signal. Market breadth has been jumping back[...]

  • VIX | Trader Talk | Education | Futures | Feb 6, 2015, 10:45 AM

    Extended Trading Hours Planned for March in SPX and VIX Options

    Extended Trading Hours Planned for March in SPX and VIX Options

    Investors from around the world have expressed interest in Extended Trading Hours (ETH) for key risk management tools, and, since June 2014, the trading hours for futures on the CBOE Volatility Index® (VIX®) have been expanded to nearly 24 hours a day, five days a week. PLANS FOR ETH FOR SPX AND VIX OPTIONS NEXT MONTH CBOE announced a plan this morning to launch Extended Trading Hours for options on both the S&P 500 and the VIX indexes next month, contingent upon SEC approval. CBOE[...]

  • Trader Talk | Education | Feb 3, 2015, 2:15 PM

    Want Success in Trading? Lose Your Opinion --- Now

    Want Success in Trading?  Lose Your Opinion --- Now

    It's hard to not listen to the experts and pundits who offer an array of opinions and points of view.  Everyone has to be smarter than us, right?  A market opinion is like a mouth - everyone has one and most don't know when to shut it (there is a similar analogy most know of, but I wanted to keep it clean!).  But those opinions tend to sway us to move in dangerous ways.  The market will never divulge an opinion, but like Jack Webb said in Dragnet:  'just the facts'. Lately[...]

  • Technical Analysis & Charts | VIX | Education | Feb 2, 2015, 1:30 PM

    Bearish Signs Continue - Weekly Market Outlook 2.2.15

    Bearish Signs Continue - Weekly Market Outlook 2.2.15

    While there's no denying last week was a rough one for the market, from one perspective, stocks still look like they've got a chance at recovering again. From another perspective though, the floor has already been broken, opening the door to a much more substantial dip. We'll take a look at how the market may already be past the point of no return in a moment. Let's first take a look at the economic numbers that ultimately spurred the sell-off last week. Economic Data Last week was relatively busy[...]

  • Technical Analysis & Charts | VIX | Trader Talk | Education | Jan 30, 2015, 2:30 PM

    Weekly Market Commentary 1.30.15

    Weekly Market Commentary 1.30.15

    Market volatility has remained high, and we can expect these high levels of volatility to persist. Even with this volatility, the chart of $SPX is still in a trading range. Once again -- for the fifth time this month -- 1990 has proven to be support. To say that 1990 is an important level would be an understatement.   If it gives way, a much more bearish situation would develop. On the upside, there is resistance at 2065. Equity-only put-call ratios remain on sell signals.  They rolled[...]

  • Education | Jan 30, 2015, 11:00 AM

    Day Three Agenda: CBOE Risk Management Conference March 6th

    Day Three Agenda: CBOE Risk Management Conference March 6th

    Day Three of the 31st Annual CBOE Risk Management Conference (RMC) on March 6th at the Hyatt Aviara in Carlsbad, California, has a terrific lineup scheduled.  RMC is well known as the premier educational forum for option professionals looking to enhance their knowledge on using equity derivatives and volatility products to manage risk.  This three-day conference 20-minutes North of San Diego should be very worthwhile.  The agenda with a list of topics and speakers for Sessions One[...]

  • VIX | Trader Talk | Education | Trade Ideas | Jan 29, 2015, 10:00 AM

    Day Two Agenda: CBOE Risk Management Conference March 5th

    Day Two Agenda: CBOE Risk Management Conference March 5th

    As you know, CBOE’s 31st Annual Risk Management Conference (RMC) will be held March 4 – 6, 2015 at the Park Hyatt Aviara in Carlsbad, California, 25 miles North of San Diego.  RMC is the premiere financial industry conference designed for institutional users of equity derivatives and volatility products. RMC's agenda covers a variety of concepts, including how to employ  hedging techniques for portfolios, utilizizing equity derivatives, and modeling and trading volatility. Topics[...]

  • Market News | Education | Jan 27, 2015, 4:45 PM

    Day One Agenda: CBOE Risk Management Conference, March 4th

    Day One Agenda: CBOE Risk Management Conference, March 4th

    CBOE's 31st Annual Risk Management Conference (RMC) will be held March 4 - 6, 2015 at the Park Hyatt Aviara in Carlsbad, California.  RMC is the premiere financial industry conference designed for institutional users of equity derivatives and volatility products.  If you're a financial professional interested in learning the latest risk management techniques and how to trade and hedge volatility, CBOE's Risk Management Conference is an event you won't want to miss. The Park Hyatt Aviara[...]

  • Trader Talk | Education | Jan 27, 2015, 10:40 AM

    The Changing Mindset of Investors and Traders

    The Changing Mindset of Investors and Traders

    One thing is for sure, the mood and temperament among investors and traders changes like the direction of the wind.  But leaning to hard one way can be very damaging to your wealth and your mind.  Certainly the unknowns out there are the challenges we have to either dodge or just embrace.  If you have a long term horizon then the bumps in the road are just great opportunities, and those have been great spots to add positions.  That has always been the ritual of the past - buy[...]

  • Market News | VIX | Trader Talk | Education | Futures | Jan 24, 2015, 10:06 AM

    The Week in Volatility Indexes and ETPs - 1/20 - 1/23

    The Week in Volatility Indexes and ETPs - 1/20 - 1/23

    Last week was another roller coaster ride for the equity market and subsequently the volatility markets. The VXST – VIX – VXV – VXMT volatility curve shifted back into contango and shook off a mild market drop on Friday to stay that way. With VIX having a 16 handle, I am beginning to wonder if traders are reaching an exhaustion point from reacting to dramatic down days in stock prices. The long volatility funds such as VXX had a tough week losing around 9%, again despite[...]

  • Trader Talk | Education | Strategy | Trade Ideas | Jan 23, 2015, 2:38 PM

    AAPL Earnings Play

    AAPL Earnings Play

    I am looking at an Iron Condor as a potential trade to play AAPL earnings next week. Trade: Sell 1 January 120 Call and Buy 1 January 123 Call. Sell 1 January 104 Put and Buy 1 January 101 Put. This is the January 30 Expiration. The credit I am looking for is around $60 per every one contract Iron Condor I do (excludes commission). Analysis: The credit for this Iron Condor is $60 and the Risk or Margin is $240 per every one contract I do. The yield is about 25% excluding commissions if I collect[...]