Education Archives - Cboe Blogs

  • Market News | Technical Analysis & Charts | Education | May 23, 2016, 9:10 AM

    A Market Under Distribution

    A Market Under Distribution

    The stock market is under distribution, this is a fact. Simply put, professional selling overwhelms the buying and prices head lower.   As the markets ebb and flow with the money coming in/out we are constantly reminded about the psychological effects of a bear market.  Yes, even after the huge rally off the February lows this could still be considered a bear market.  Some of the strongest rallies occur during bear markets, but we cannot dismiss the internal characteristics. [...]

  • Market News | VIX | Education | Trade Ideas | May 19, 2016, 1:43 PM

    The United Kingdom has Options….and So Do You

    The United Kingdom has Options….and So Do You

    The CBOE is the leader in listed Index and Equity options – and every so often there is a geopolitical event that can have reverberations in our financial markets. In just the past handful of years, we have experienced significant moves in volatility (both realized and implied) from elections and referendums, typically stemming from the other side of the Atlantic Ocean. On Thursday June 23rd, a referendum will be held to decide whether or not Britain should leave the European Union. Keep[...]

  • VIX | Education | Futures | May 13, 2016, 1:34 PM

    The Weekly Options News Roundup – 5/13/2016

    The Weekly Options News Roundup – 5/13/2016

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast, online and social media outlets. VIX FIX – Tepid Volatility For weeks, market enthusiasts have braced themselves for a resurgence in volatility that has yet to materialize. The Dow Jones is ending the week slightly lower, while the CBOE Volatility Index continued to venture lower, dropping below the 14 level mid-week, before slightly rebounding[...]

  • Trader Talk | Education | May 12, 2016, 6:59 PM

    Are Options a Core or Satellite Component of Portfolio Management?

    Are Options a Core or Satellite Component of Portfolio Management?

    Today I had the pleasure of moderating a panel at the OIC Financial Advisor Forum which was running concurrently with the 34th Annual Options Industry Conference. My panel was on the presidential election cycle and market volatility with a combination of a political expert and two individuals involved in money management. I enjoyed the challenge of trying to integrate the markets and politics into a single common themed discussion. Despite being immersed in thinking about my own moderating duties[...]

  • Weekend Review - Russell 2000 Options and Volatility - 5/2 - 5/6

    Weekend Review - Russell 2000 Options and Volatility - 5/2 - 5/6

    Small cap stocks get so close and then seem to fall back when reaching unchanged on the year or catching up with the performance of large cap stocks. This week the Russell 2000 (RUT) dropped 1.44% while the large cap focused Russell 1000 (RUI) lost 0.49%. This places RUT in the red by 1.86% for 2016 while RUI is still up 0.55%. With the underperformance of small cap stocks last week came a relative rise in the CBOE Russell 2000 Volatility Index (RVX). The RVX / VIX premium began the[...]

  • Education | Futures | Strategy | May 6, 2016, 4:25 PM

    Rising Volatility on China?

    Rising Volatility on China?

    With the recent launch of cash-settled options on FTSE China 50 Mini-Index (Ticker: FXTM), traders have an opportunity to express a view on the Chinese market or movement in volatility is available. Based on 50 of the largest and most liquid Chinese stocks (H Shares, Red Chips, and P Chips) trading in Hong Kong, cash-settled options on the FTSE China 50 Mini-Index is now listed on CBOE. FTSE China 50 Index Price & Volatility FTSE China 50 Index price movement changes on a monthly basis is typically[...]

  • Market News | Education | May 3, 2016, 10:51 AM

    Morningstar Places Dozens of Funds in New “Option Writing” Category

    Morningstar Places Dozens of Funds in New “Option Writing” Category

    In a key development during the past week, Morningstar placed dozens of mutual funds in its new Option Writing category in its U.S Retail Category system. LESS VOLATILITY FOR BENCHMARK INDEXES THAT WRITE SPX OPTIONS Morningstar’s Category Index for the new Option Writing category is the CBOE S&P 500 BuyWrite Index (BXM). There are some people who still wonder if use of options usually adds to volatility, and if option writing strategies always have lower returns than equity indexes[...]

  • Market News | Education | Apr 29, 2016, 3:35 PM

    The Weekly Options News Roundup – 4/29/2016

    The Weekly Options News Roundup – 4/29/2016

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast, online and social media outlets. CBOE Livevol Aims to Be a “Data Amazon” CBOE announced Thursday it has launched a new website, CBOE Livevol Data Shop, offering clients a full suite of uniquely customizable market data.  With the new Data Shop website, clients no longer have to purchase data or subscribe to data sets on a one-size-fits-all[...]

  • Market News | Education | Apr 29, 2016, 9:15 AM

    CBOE LIVEVOL LAUNCHES NEW DATA SHOP WEBSITE

    CBOE LIVEVOL LAUNCHES NEW DATA SHOP WEBSITE

    The Chicago Board Options Exchange® (CBOE®) today announced that it has launched a new website, CBOE Livevol Data Shop, which offers clients a full suite of uniquely customizable market data sets. The new CBOE Livevol Data Shop, available at datashop.cboe.com, provides users with direct and immediate access to a comprehensive set of market intelligence for options, equities, indexes and exchange-traded funds (ETFs). The user-friendly website provides access to detailed calculations, including[...]

  • Market News | Education | Apr 27, 2016, 4:22 PM

    Morningstar Is Adding New “Option Writing” Category on April 29

    Morningstar Is Adding New “Option Writing” Category on April 29

    In my opinion, the launch of a new Option Writing category by Morningstar this week has tremendous potential to boost long-term interest in and acceptance of options-based strategies by portfolio managers, financial advisers, and consultants. On April 29, 2016, Morningstar is adding a new Option Writing category to its U.S Retail Category system, and the Category Index is the CBOE S&P 500 BuyWrite Index (BXM). BACKGROUND ON DEVELOPMENTS IN PAST YEARS Over the past decade I have spoken to numerous[...]

  • VIX | Education | Apr 27, 2016, 1:00 PM

    CBOE Hosting New Conference on Derivatives and Volatility

    CBOE Hosting New Conference on Derivatives and Volatility

    Over the past ten years or so VIX futures and options have been two of the fastest growing listed derivative markets in the world.  This has resulted in traders and investors paying more attention to market volatility than ever before.  It has also resulted in the dramatic expansion of academic research focused on volatility.  The combination of these two factors has led to a collaboration between the Financial Management Association and CBOE in the form of a new conference. [...]

  • Education | Apr 27, 2016, 9:16 AM

    First Trades in New CBOE FLEX Index Options with Asian-Style Settlement

    First Trades in New CBOE FLEX Index Options with Asian-Style Settlement

    Last week the first couple of trades were executed in the new CBOE FLEX® index options with Asian-style settlement. Open interest for the new CBOE Asian-style FLEX options has grown to more than 680 contracts, representing notional value of more than $6 million.. A recent article at EQDerivatives.com noted that – “An insurance firm has traded the first listed Asia-style flexible exchange option, which were listed on the Chicago Board Options Exchange last month. Agency only broker[...]

  • Education | Strategy | Apr 25, 2016, 10:17 AM

    Option Trading - Are You Ready? Part 1

    Option Trading - Are You Ready?  Part 1

    "Great traders have passion, confidence, an edge and a game plan. They are prepared, They keep their system simple.” - Gavin McMaster I have been option trading for several years, and while my results have been up/down - what is important is that I have survived many different market cycles.  That should tell you a great deal, as surviving in this jungle call the 'market' without a life preserver is a difficult but not impossible task.  To me, success is not all about the bottom[...]

  • Market News | Education | Apr 22, 2016, 1:49 PM

    The Weekly Options News Roundup – 4/22/2016

    The Weekly Options News Roundup – 4/22/2016

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast, online and social media outlets. Stellar Connections Yesterday, CBOE Futures Exchange (CFE) announced that Stellar Trading Systems, a multi-asset trading software and services specialist, has established connectivity with  CFE.  This new link extends the exchange’s global footprint, broadening its reach with European and Asian investors. [...]

  • Market News | Education | Futures | Apr 20, 2016, 10:29 AM

    Continued Use of Listed Options Is Permitted by Final DOL Fiduciary Rules

    Continued Use of Listed Options Is Permitted by Final DOL Fiduciary Rules

    Here is an update on the status of fiduciary rules recently finalized by the Department of Labor (DOL).  PROPOSED DOL REGS IN APRIL 2015 The DOL proposed on April 14, 2015 sweeping new regulations governing retirement accounts and IRAs which would exclude listed options and futures as permissible investments. FINAL DOL REGS IN APRIL 2016 On April 6, 2016, the DOL released its final Conflict of Interest Rule and related exemptions, which are available at http://www.dol.gov/ebsa/regs/conflictsofinterest.html. The[...]