Education Archives - CBOE Blogs

  • Market News | VIX | Trader Talk | Education | Trade Ideas | Mar 1, 2016, 2:59 PM

    Equities & Rates: Hybrid Options, Correlation and Risk Management Discussion at CBOE RMC

    Equities & Rates:  Hybrid Options, Correlation and Risk Management Discussion at CBOE RMC

    Rocky Fishman, CFA, Equity Derivatives Strategies from Deutsche Bank Securities and Philip Jones, SVP Quantitative Strategies Capital Markets Solutions, Ameriprise Financial teamed up for a session titled Equities and Rates: Hybrid Options Correlation, and Risk Management. Fishman started out noting that the correlation between interest rates and stocks changed about 15 years ago.  From the early 1960’s through 2000 there was a negative relationship, more recently it has been positive. [...]

  • Market News | VIX | Education | Strategy | Mar 1, 2016, 1:09 PM

    CBOE RMC - Differentiating and Benchmarking Volatility-Based Investment Strategies

    CBOE RMC - Differentiating and Benchmarking Volatility-Based Investment Strategies

    The first session after lunch at today’s Risk Management conference was a combination presentation and panel discussion.  The first part of the session featured Chris DeMeo from Nu Paradigm Investment Partners, LLC who discussed the CBOE EurekaHedge Volatility Indexes which were introduced in August of 2015.  These indexes addressed the lack of an appropriate benchmarks for analyzing volatility based strategies. The indexes are divided into four categories – Long Volatility Short[...]

  • Market News | VIX | Trader Talk | Education | Mar 1, 2016, 8:13 AM

    CBOE Holdings President and COO Edward Provost on Exchange’s New Initiatives

    CBOE Holdings President and COO Edward Provost on Exchange’s New Initiatives

    CBOE Holdings President and COO Edward Provost kicked off Day Two of CBOE RMC U.S. with an update on recent CBOE developments, highlighting numerous CBOE initiatives designed to create new trading opportunities for investors. Provost began by announcing CBOE’s plans to launch FLEX index options with Asian and Cliquet style settlement, citing their relevance to RMC participants working in the insurance field. “Asian and Cliquet FLEX index options are designed to give insurers an alternative[...]

  • Education | Feb 29, 2016, 7:34 PM

    CBOE RMC Day 1 Recap

    CBOE RMC Day 1 Recap

    I work for CBOE and I am a company man.  However, no bias plays into me stating that today’s first three sessions of CBOE’s Risk Management Conference combined to make today the best first day of RMC I have ever experienced.  Each session combined education with practical knowledge and each session involved two speaker that complemented each other’s strengths. The first session involved pairing up Mark Shore who is Chief Research Officer from Shore Capital Research as[...]

  • Market News | VIX | Education | Strategy | Feb 29, 2016, 3:38 PM

    Intersections Between Macroeconomic Conditions and Volatility Levels

    Intersections Between Macroeconomic Conditions and Volatility Levels

    The final session on the first day of Risk Management was titled Intersections Between Macroeconomic Conditions and Volatility Levels.  Benn Eifert, Ph.D., Former Portfolio Manager from Mariner Coria and Stacey Gilbert, Head of Derivatives Strategy at Susquehanna teamed up for a very informative and educational session. Eifert started things off discussing the relationship between the economy and equity market volatility which is an area that the markets are very focused on for 2016.  His[...]

  • Market News | Trader Talk | Education | Strategy | Trade Ideas | Feb 29, 2016, 2:18 PM

    The Unknowns about Bond Investing that Equity Options Traders Know

    The Unknowns about Bond Investing that Equity Options Traders Know

    John Marshall, Managing Director, Derivatives and Tactical Research at Goldman Sachs and Zem Sternberg of Lake Hill delivered a joint presentation at CBOE’s Risk Management Conference today in Bonita Springs, FL.  Their very timely talk, considering the uncertainty surrounding the current interest rate environment, was titled The Unknowns about Bond Investing that Equity Options Traders Know. Zem kicked off the presentation saying there are three questions (with answers) that must be addressed[...]

  • Education | Futures | Strategy | Trade Ideas | Feb 29, 2016, 12:39 PM

    Constructing/Deconstructing Volatility Risk Premia Strategies

    Constructing/Deconstructing Volatility Risk Premia Strategies

    LimelightPlayerUtil.initEmbed('limelight_player_969842'); I have to include a personal note - this is the best first presentation I have ever witnessed at a CBOE Risk Management Conference. The first session of the 32nd Annual CBOE Risk Management Conference paired up Mark Shore who is Chief Research Officer from Shore Capital Research as well as an Adjunct Instructor at DePaul University with Roni Israelov, Portfolio Manager from AQR Capital Management.  Their session was titled Constructing[...]

  • Technical Analysis & Charts | VIX | Education | Strategy | Feb 29, 2016, 12:10 PM

    Weekly Market Outlook - Bullish, But Not Yet Firmly So

    Weekly Market Outlook - Bullish, But Not Yet Firmly So

    Last week wasn't a no-holds-barred kind of bullish week, but stocks did manage to follow-through on the prior week's rebound effort, breaking above some semi-important resistance levels.  There still a tough road to travel, however, if the bulls are going to get anything going for the long haul. We'll take our usual look at the market's upside and downside below, after dissecting some of this week's and last week's more important economic data. Economic Data Last week was pretty busy in terms[...]

  • Market News | Education | Strategy | Trade Ideas | Feb 28, 2016, 2:11 PM

    Bear Market Survival Tactics

    Bear Market Survival Tactics

    There should be no dispute by now that we are in the throes of a vicious bear market.  Oh, sure we can argue stocks are well above where they were back in the financial crisis, and many stocks have not even lost half of those gains.  Yet, current market conditions are such that the prices can go sideways or down for a long period of time.  If that happens, what will/should you do? At times it is okay to sit it out.  I do this frequently, especially after a rough spell. [...]

  • Market News | VIX | Trader Talk | Education | Futures | Strategy | Feb 27, 2016, 7:00 AM

    Weekend Review - Volatility Indexes and ETPs - 2/22 - 2/26

    Weekend Review - Volatility Indexes and ETPs - 2/22 - 2/26

    This was probably the calmest week we had in the markets in 2016, which is good for the long term investors, but makes my job sort of tough.  VIX put in a 2016 closing low but do note that VXST rose last week.  This past week didn’t really have a lot of the known unknowns such as major economic numbers so short term volatility was pretty tame.  Next week we get an employment number on Friday and I am attributing the rise in VXST to that event. The long funds continued to give[...]

  • Market News | VIX | Trader Talk | Education | Futures | Feb 26, 2016, 4:20 PM

    February 26, 2016 Weekly Report on CBOE VIX Index Suite

    February 26, 2016 Weekly Report on CBOE VIX Index Suite

    Foreign Exchange Volatility Remains a Hot Spot The chance of divergence between monetary policies and the impact of oil prices and China factors on international trade continues to sustain volatility in foreign exchange VIX indexes: CBOE/CME FX Euro Volatility IndexSM (Ticker: EUVIX); CBOE/CME FX Yen Volatility IndexSM (Ticker: JYVIX)  and CBOE/CME FX British Pound Volatility IndexSM (Ticker: BPVIX). In contrast, this week the CBOE VIX Index stabilized as stock markets rallied[...]

  • Education | Strategy | Feb 23, 2016, 4:33 PM

    New Study by Black and Szado Analyzes Six CBOE Benchmarks – BXM, PUT, BFLY, BXMD, CMBO, CNDR – Since 1986

    New Study by Black and Szado Analyzes Six CBOE Benchmarks – BXM, PUT, BFLY, BXMD, CMBO, CNDR – Since 1986

    A new study examines six benchmark indexes that write S&P 500® (SPX) index options, comparing their performances with those of traditional stock, bond and commodity benchmark indexes. The study, “Performance Analysis of CBOE S&P 500 Options-Selling Indices,” is the first comprehensive study that examines the performance of options-strategy benchmark indexes that incorporate iron condor and iron butterfly strategies. Commissioned by CBOE and co-authored by Keith Black, Ph.D.,[...]

  • VIX | Trader Talk | Education | Futures | Trade Ideas | Feb 21, 2016, 12:44 PM

    CBOE RMC - Five Things I'm Looking Forward to Next Week

    CBOE RMC - Five Things I'm Looking Forward to Next Week

    One the best parts of my job as Director of Education at The Options Institute is getting to attend each of the Risk Management Conferences offered by CBOE.  Back in the Fall the running theme at both the European and Asian versions of RMC seemed to be how the markets were shifting from a low to high volatility regime.  Early 2016 price action has confirmed this. There are five things that have me particularly excited about heading to Bonita Springs, FL next week for the 32nd Annual RMC[...]

  • VIX | Trader Talk | Education | Futures | Trade Ideas | Feb 21, 2016, 11:39 AM

    Weekend Review Volatility Indexes and ETPs - 2/16 - 2/19

    Weekend Review Volatility Indexes and ETPs - 2/16 - 2/19

    VXST dropped dramatically last week and closed on the lows of 2016.  VIX managed to hold up a little better and looking at the economic calendar for next week I can kind of see why.  VXST often leads VIX so a move below 20.00 next week may not be out of the question.  After I typed that sentence I realized we are only 0.53 away from the teens so it wasn’t the most daring of market predictions. This is the year I am going to focus more on the disconnection in performance[...]

  • VIX | Education | Futures | Feb 19, 2016, 1:35 PM

    The Weekly Options News Roundup – 2/19/2016

    The Weekly Options News Roundup – 2/19/2016

    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: Volatility Makes Itself At Home Volatility seems to have settled in to stay. Blame it on the Fed, oil prices or global economic weaknesses, market turbulence seems to have hung its coat and made itself at home.  Volatility may not be rising, but it’s definitely staying put. “Volatility Update:[...]