Education Archives - CBOE Blogs

  • Education | Feb 18, 2016, 4:53 PM

    Option Club Presentations Offered by The Options Institute

    Option Club Presentations Offered by The Options Institute

    Today I spent the afternoon with the Option Trading Strategies of Tampa, St. Petersburg, and Clearwater group.  They meet once a month and allowed me to spend about an hour discussing volatility in the current market along with a wide range of other topics that resulted from the questions I fielded.  Option trading groups and clubs are among my favorite organizations to address as the members are often as passionate about the financial markets as I am. The Options Institute is dedicated[...]

  • VIX | Education | Futures | Feb 12, 2016, 1:53 PM

    February 12, 2016 Weekly Report on CBOE VIX Index Suite

    February 12, 2016 Weekly Report on CBOE VIX Index Suite

    Volatility Sizzles As Markets Waver Despite sparse developments in global fundamentals, and relatively good vibes from U.S. economic indicators, fear overtook financial markets this week and energized VIX indicators. The CBOE/CBOT 10-year U.S. Treasury Note Volatility Index (ticker symbol: TYVIX), the gauge for interest rate volatility, reached a value of 8.53 near the open on Thursday and closed at 7.65 -- the TYVIX Index had not closed this high since January 2015. In addition, the intraday high[...]

  • Market News | VIX | Education | Futures | Feb 12, 2016, 12:30 PM

    The Weekly Options News Roundup – 2/12/2016

    The Weekly Options News Roundup – 2/12/2016

    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. Overnight VIX Values Coming in March Beginning next month, CBOE will begin disseminating values for the CBOE Volatility Index (VIX Index) during its overnight, extended trading hours session (2:00 to 8:15 am CT) for SPX and VIX options. Overnight dissemination of the VIX Index will enable market participants to view volatility[...]

  • Education | Feb 10, 2016, 2:00 PM

    College Day Returns to CBOE

    College Day Returns to CBOE

    Due to popular demand the CBOE Options Institute is bringing back one of our most popular programs.  On March 8, 15, and 22 we will host college students from all over the country for a day of learning about the derivatives industry.  College Day includes a visit to the trading floor and an after-hours mock trading event.  During the day college students will learn more about the different career paths available in the trading industry.  For more information you can click on www.cboe.com/collegeday[...]

  • Market News | VIX | Education | Trade Ideas | Feb 10, 2016, 1:00 PM

    Record Open Interest of 2,333 Contracts for Options on MSCI Emerging Markets Index (MXEF)

    Record Open Interest of 2,333 Contracts for Options on MSCI Emerging Markets Index (MXEF)

    The open interest for options on the MSCI Emerging Markets Index (MXEF) recently rose to a record 2,333 contacts. Several institutional investors have expressed interest in the potential for a liquid MXEF options contract, particularly because the MXEF options contract is cash-settled and has a notional size that is about 24 times larger than options on the EEM ETF. IMPORTANT MSCI GLOBAL INDEXES In mid-2015 the total market capitalizations were $13 trillion for MSCI EAFE (MXEA) and $4 trillion for[...]

  • Market News | VIX | Education | Feb 5, 2016, 5:00 PM

    The Weekly Options News Roundup – 2/5/2016

    The Weekly Options News Roundup – 2/5/2016

    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: Overnight Access Granted CBOE announced this week that it will begin overnight dissemination of the CBOE Volatility Index next month, enabling market participants to “view volatility during that period through the same lens used in regular U.S. trading hours.” “CBOE Extends VIX Index Overnight for[...]

  • Education | Trade Ideas | Feb 4, 2016, 9:46 AM

    Open Interest for Options on MSCI Emerging Markets Index (MXEF) Tops 600 Contracts

    Open Interest for Options on MSCI Emerging Markets Index (MXEF) Tops 600 Contracts

    This last week the open interest for options on the MSCI Emerging Markets Index (MXEF) rose above 600 contacts for the first time. Over the past year several institutional investors have expressed interest in the potential for a liquid MXEF options contract, particularly because the MXEF options contract is cash-settled and has a notional size that is about 24 times larger than options on the EEM ETF. VOLATILITY SKEW FOR MXEF OPTIONS The volatility skew chart below shows that Bloomberg has estimated[...]

  • Paper by Professor Bondarenko Has Intriguing New Analysis of the Premiums, Returns and Volatility of PUT and WPUT Indexes

    Paper by Professor Bondarenko Has Intriguing New Analysis of the Premiums, Returns and Volatility of PUT and WPUT Indexes

    A new 10-page study examines both the CBOE S&P 500 PutWrite Index (PUT) and the CBOE S&P 500 One-Week PutWrite Index (WPUT), comparing their performances with that of traditional benchmark stock and bond indexes. This is the first comprehensive published study that examines the performance of a benchmark strategy index that incorporates WeeklysSM options. Written by Oleg Bondarenko, professor of finance at the University of Illinois at Chicago, the study -- “An Analysis of Index Option[...]

  • Market News | Education | Strategy | Jan 25, 2016, 9:12 AM

    Patience Will Pay Off

    Patience Will Pay Off

    Still trying to stab at that bottom?  Not a game I like to play.  Frankly, taking a grab at falling knives has proven more dangerous than fun.  This market is proving there is very little reason to step in and buy for any length of time longer than few hours, maybe a full day.  So many want to get in on this very oversold market.  Why?  Just look at last August and October, or October 2014 where deep oversold conditions existed.  Utilizing patience will serve you[...]

  • Education | Jan 19, 2016, 9:14 AM

    Fed Policy is Hawkish (No Foolin')

    Fed Policy is Hawkish (No Foolin')

    We have come to the point where Fed policy is really in a corner, and the only real way out is to distribute some pain to the markets. That has certainly been the message so far in 2016, but was certainly telegraphed over the past year or so, too. The Fed seems quite confident about the prospects for economic growth and the potential for rising inflation, enough they felt comfortable raising interest rates last month a 1/4 point - the first such move in nearly a decade. The minutes came out last[...]

  • Market News | Education | Strategy | Jan 15, 2016, 2:51 PM

    The Weekly Options News Roundup – 1/15/2016

    The Weekly Options News Roundup – 1/15/2016

    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 2016: Building on Strengths Earlier this week, CBOE held its annual press luncheons in Chicago and New York, telling the story of how the exchange continues to “collaborate, create and connect “to expand its business. In 2016, the exchange looks forward to introducing new products, reaching customers[...]

  • VIX | Trader Talk | Education | Jan 12, 2016, 3:40 PM

    The Blame Game

    The Blame Game

    Plenty of ink has been spilled about the selloff in global equity markets including SPX and RUT. We have been witness to an escalating VIX and RVX, albeit with significantly lower highs (to this point) when compared to the late August selloff. Psychologically, we like to be able to attribute market pullbacks to something specific. People want a narrative. They prefer to have something to point to and affix blame. Jesse Livermore famously spouted, “There is only one side of the market and it[...]

  • Market News | Education | Futures | Jan 11, 2016, 1:00 PM

    VIX Weekly Futures Prices Rose 42% in First Week of 2016

    VIX Weekly Futures Prices Rose 42% in First Week of 2016

    The first week of 2016 was a challenging one for many financial markets worldwide, as (1) It was the worst opening week of the year in history for both the S&P 500®(SPX) and the Dow Jones Industrial Average, (2) The Shenzhen Composite Index of Chinese stocks fell 14.2%, (3) Crude oil futures (Feb. WTI) fell 10.5%, and (4) The U.S. dollar posted its biggest weekly loss vs. the yen since August 2013. Were there investable instruments that had diversification potential with double-digit[...]

  • Market News | Education | Jan 8, 2016, 6:30 PM

    The Weekly Options News Roundup – 1/8/2016

    The Weekly Options News Roundup – 1/8/2016

    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: New Year, Same Ole Volatile Markets During the year’s first week of trading, stocks took a sharp downturn due to turmoil in China that ignited global markets into a sell-off. The Dow Jones fell over 900 points this week, while the VIX Index climbed above the 27-level. [...]

  • Market News | VIX | Education | Jan 8, 2016, 4:45 PM

    2016 Stock Market Forecast & 2015 Market Review

    2016 Stock Market Forecast & 2015 Market Review

    Usually we make this the topic of a longer article at year-end, but frankly we are not holding positions for anywhere near a year, so this is just a mental exercise – not having a lot to do with our style of trading. Besides, last year the big thing was that years ending in “5" are extremely bullish.  Well, this one wasn’t, which just shows that seasonals don’t always work.  Of course, with this one you have to wait another ten years to see how the next signal[...]