Futures Archives - CBOE Blogs

  • Market News | VIX | Trader Talk | Futures | Feb 13, 2015, 9:46 AM

    Earnings Next Week - 2/17 - 2/20

    Earnings Next Week - 2/17 - 2/20

    Next week is a short week, but still heavy on the earnings front.  The numbers below depict the biggest up and down moves over the last three years along with the average move and what the stock did in response to the last earnings release -  

  • 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[...]

  • Market News | Trader Talk | Futures | Trade Ideas | Feb 7, 2015, 12:25 PM

    The Week in VIX - 2/2 - 2/6

    The Week in VIX - 2/2 - 2/6

    With a 17% drop in VIX, the week ended not just in contango, but pretty steep contango. Especially when looking at February versus the spot. Also taking into account there is a week and a half remaining until February settlement. February at almost a 2 point premium to VIX in a pretty good indication that traders are still worried about the health of the overall stock market and the possibility that February settlement comes in higher than current levels. I’m going to deviate a[...]

  • 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[...]

  • Market News | VIX | Futures | Feb 2, 2015, 3:20 PM

    Checking in on Oil Volatility

    Checking in on Oil Volatility

    Oil was the headline grabbing market for the last few months of 2014. For months the price of oil has continued to violate any sort of support levels that technical analysts can come up with. January’s average OVX close was just over 55. This was the highest average for a month since the tail end of the Great Financial Crisis in April 2009. The chart below shows the average daily close by month for OVX since mid-2007 through January 2015. The thing is, Oil has sort of vanished from the headlines.[...]

  • Market News | VIX | Trader Talk | Futures | Feb 1, 2015, 11:52 AM

    Dissecting VIX Volume Trends

    Dissecting VIX Volume Trends

    I was lucky enough to join The Options Institute at the Chicago Board Options Exchange in April 2009. This has been a wonderful place to work as each day is different and almost every day I learn something new. Back in high school, a discipline heavy all-boys school, the head football coach was my homeroom teacher for freshman year. Coach Nix would send us off with the same words each day, “If you learn one new thing each day this year you will know a lot of new things at the end of the year.”[...]

  • VIX | Trader Talk | Futures | Feb 1, 2015, 7:20 AM

    The Week in VIX - 1/26 - 1/30

    The Week in VIX - 1/26 - 1/30

    The stock market continues to be jittery with the S&P 500 dropping almost 3% last week.  This price action resulted in a 25% move higher in VIX. I was in the classroom most of Friday so I wasn’t as focused as I would like to have been on the intraday price action. I was pretty surprised to see the February future settle at a premium to the index. With VIX over 20 we would expect at least a little backwardation. I could understand the shape of the curve below if February settlement[...]

  • Market News | VIX | Trader Talk | Futures | Jan 31, 2015, 12:12 PM

    The Week in Volatility Indexes and ETPs - 1/26 - 1/30

    The Week in Volatility Indexes and ETPs - 1/26 - 1/30

    Friday the S&P 500 sold off and broke below the psychologically significant 2000 level. Other than being a round number that’s about all the significance I would give to 2000.  If I were still a full time trader the number I would be more concerned with is 1990. The first chart this weekend is a daily closing chart for the S&P 500. I did write a book on technical analysis (like 9 years ago) but do not claim to be a master technician. However it sure appears to me that support for[...]

  • Market News | Trader Talk | Futures | Trade Ideas | Jan 25, 2015, 9:39 AM

    The Week in VIX - 1/20 - 1/23

    The Week in VIX - 1/20 - 1/23

    The S&P 500 was strong and VIX was weak last week. We returned to contango in VIX world as the S&P 500 was up 1.6% for the week. This despite having a tough Friday. Note the February future is at a pretty nice premium to the spot index. This may be a function of the people of Greece going to the polls this weekend, a two day Fed meeting, and a slew of economic numbers coming out next week. Near the top of my weekend ‘must read’ list is Steven Sears’ Striking Price column[...]

  • 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[...]

  • Technical Analysis & Charts | VIX | Trader Talk | Futures | Jan 23, 2015, 3:30 PM

    Weekly Market Commentary 1.23.15

    Weekly Market Commentary 1.23.15

    The market continues to be volatile, with $SPX bouncing from support at 1990 to resistance at 2065 swiftly in the past four days.  Outside of that range, there is further support at 1975 (the October lows) and resistance at 2090 (the all-time highs).  As a result, the $SPX chart remains neutral at this time. Equity-only put-call ratios turned bullish in early January, and the standard ratio remains on a buy signal (barely) at this time, even though the 21-day moving average has curled[...]

  • Technical Analysis & Charts | Education | Futures | Jan 21, 2015, 2:30 PM

    Lack of Liquidity Affects Most Markets

    Lack of Liquidity Affects Most Markets

    We have become accustomed to low volume, low volatility markets.  On certain days you can just feel the intensity and flow potential from the start.  Markets gap up and hit morning highs, rest and then run hard to finish the day -- and all the bulls rejoice.  A runaway gap down and follow through has everyone stumped and waiting for a snapback rally, which may not occur, bids disappear and prices run hard to finish the days on their lows.  This has been the mantra so far in 2015[...]

  • Market News | VIX | Trader Talk | Futures | Jan 21, 2015, 11:07 AM

    Block Trade - Yesterday's Buyer of VIX Jan 20 Calls

    Block Trade - Yesterday's Buyer of VIX Jan 20 Calls

    Yesterday as the trading day got started I heard a shout to my right (which is the direction of the VIX pit) as a big trade came into the VIX arena. It turns out all the hubbub was about a buyer of 80,000 VIX Jan 20 Calls who paid 0.75 for 8,370 and 0.80 for 71,630 of those options. Being the day before January VIX settlement this trade was a bit of a surprise, but also got a lot of attention. Later in the day, with VIX higher, a (maybe the same?) buyer returned purchasing about 70,000 of the VIX[...]

  • Market News | VIX | Education | Futures | Jan 20, 2015, 1:00 PM

    VIX January Settlement Reminder: Wednesday 1.21.15

    VIX January Settlement Reminder: Wednesday 1.21.15

    Settlement Reminder: Today, Tuesday January 20th is the last trading day for January in the following: VIX, RVX, VXN, GVZ, OVX, VXEEM, VXEWZ, and VXTYN futures and options. These contracts settle tomorrow, Wednesday morning, January 21st. We will post the settlement values when they are released tomorrow morning.

  • VIX | Trader Talk | Education | Futures | Jan 19, 2015, 8:56 AM

    Explaining VIX to a 10 Year Old

    Explaining VIX to a 10 Year Old

    This weekend, as I drove my oldest daughter to one of her many activities, she asked if she could ask me a question. I braced myself for something that may be more appropriate for her mother to answer. However, I was surprised when she uttered the words, “Dad, what’s VIX?” Here’s a summary of my attempt to explain VIX to a 10 year old – Let’s say the amount of money you have in the bank goes up and down with the markets, like those numbers I watch on TV in the[...]