Futures Archives - CBOE Blogs

  • Market News | VIX | Futures | Dec 22, 2014, 6:00 PM

    Christmas Holiday Trading Hours for CBOE, C2 & CFE

    Christmas Holiday Trading Hours for CBOE, C2 & CFE

    This Thursday is Christmas Day, an exchange holiday.  There will be no trading at CBOE, C2 and the CFE. Wednesday December 24th is a shortened trading schedule.  On CBOE and C2, options on stocks (equities), Indexes and ETF’s that normally cease trading at 3:00pm Central time will close at 12:00pm noon.  ETF’s and Indexes that normally close at 3:15 CT will close at 12:15pm. CBOE and C2 will have regular trading hours in all products Friday December 26th. CFE has[...]

  • Market News | VIX | Trader Talk | Futures | Dec 21, 2014, 10:04 AM

    The Week in VIX - 12/15 - 12/19

    The Week in VIX - 12/15 - 12/19

    The first chart in this blog is a bit out of place. I normally discuss the VXST – VIX – VXV – VXMT term structure in the space where we review volatility index and ETP trading. However, after I completed that blog I considered taking a look at where we closed Friday versus the average for 2014. On the short end VXST is only 0.07 higher than the average for 2014, but this can still be considered relatively high since we are moving into a holiday shortened week. Volatility indexes[...]

  • Market News | VIX | Trader Talk | Futures | Dec 20, 2014, 4:30 PM

    The Week in Gold and Oil Volatility - 12/15 through 12/19

    The Week in Gold and Oil Volatility - 12/15 through 12/19

    Gold volatility represented by GVZ dropped 5% last week and the price of gold as represented by GLD was down 2.25%. Now on to what people care about these days – The week over week price change for the United States Oil ETF (USO – 21.96) comes nowhere near telling the story from last week. From Friday to Friday USO was up 0.03 from 21.93 to 21.96. So why in the world is the OVX curve in backwardation and why was OVX up over 10% to close over 50.00 for the first time in over 3 years? Why,[...]

  • VIX | Trader Talk | Education | Futures | Dec 16, 2014, 10:00 AM

    VIX December Settlement Reminder: Wednesday 12.17

    VIX December Settlement Reminder: Wednesday 12.17

    Settlement Reminder: Today, Tuesday December 16th is the last trading day for December in the following: VX, VM, VXEM, OV, VN, VXEW, VXST and GV futures and options. These contracts settle tomorrow, Wednesday morning, December 17th. We will post the settlement values when they are released tomorrow morning.

  • Technical Analysis & Charts | VIX | Education | Futures | Dec 15, 2014, 5:00 PM

    Capitulation Or Acceleration? - Weekly Market Outlook

    Capitulation Or Acceleration? - Weekly Market Outlook

    Stocks toyed with the idea two weeks ago, but pulled the trigger last week.  What's that?  A significant stumble.  After the bullish momentum slowed the first full week back after Thanksgiving, it reversed - in spades.  The S&P 500's (SPY) (SPX) 3.5% pullback last week was actually the worst single calendar-week performance since August of 2011. Ironically, the sheer size of the selloff may also be the best thing going for the market this week, as it may inspire a short-term[...]

  • Market News | VIX | Trader Talk | Futures | Dec 14, 2014, 2:09 PM

    Last Week in VIX - 12/8 - 12/12

    Last Week in VIX - 12/8 - 12/12

    Nothing like a 3% drop to provide a year-end boost to VIX, especially when it appeared no one was expecting it. Last Friday we got through the employment report unscathed and the result was a VIX close under 12. The last potential big “known unknown” this year comes Wednesday afternoon with the FOMC announcement. As a friendly reminder, December VIX futures and options settle on the open Wednesday so any trades based on an FOMC announcement reaction should focus on January contracts. The[...]

  • Market News | VIX | Trader Talk | Futures | Dec 13, 2014, 1:00 PM

    The Week in Gold and Oil Volatility - 12/8 - 12/12

    The Week in Gold and Oil Volatility - 12/8 - 12/12

    I recall when I totally ignored Oil in this space for gold, my how things have changed.   USO dropped over 12% last week which places the fund down about 38% in 2014. The result for OVX, as seen on the right side below, was a jump of 45% and a move near all-time highs. The front month December future, which settles on the open Wednesday morning, finished the week at a 2.72 point discount to the index, which indicates to me that a quick move down in OVX (and stabilization of oil prices)[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Dec 13, 2014, 9:25 AM

    The Week in Volatility Indexes and ETPs - 12/8 - 12/12

    The Week in Volatility Indexes and ETPs - 12/8 - 12/12

    The VXST – VIX – VXV – VXMT curve shift was the most dramatic change I have seen since writing these blogs. Of course VXST is just a little over a year old so there’s not too much history for comparison. I am more intrigued by the right side of the curve with VXV and VXMT in the 20’s. As a reminder VXV is a 3 month version of VIX and VXMT measures 6 month implied volatility. Those two indexes moving above 20 and in line with VIX indicate some real concern for the S&P[...]

  • Weekly Market Commentary 12.12.14

    Weekly Market Commentary 12.12.14

    Various indicators have been turning bearish since mid-November.  But until this week, $SPX itself had not broken down, and since price is "king," that was quite important.  However, now $SPX has broken down, as it has fallen below support at 2050.  This completes a bearish pattern, and a full-fledged correction is underway. This could be sharp and short-lived, and since it is taking place late in the calendar year (when seasonal bullishness occurs), that is probably the[...]

  • Market News | VIX | Trader Talk | Futures | Dec 7, 2014, 10:01 AM

    The Week in VIX or Part 2 of the Big VIX Option Trade

    The Week in VIX or Part 2 of the Big VIX Option Trade

    VIX drifted to close under 12.00 for the first time since late August as the S&P 500 made more new highs. The leftover fear from the market’s dive in October seems to be gone just like all our Thanksgiving leftovers. At least one derivative strategist thinks lower VIX levels are on the near term horizon. Buzz Gregory from Goldman Sachs was featured in Barron’s this weekend saying his models point to VIX around 10.60 before 2014 is done. The trades executed last week and[...]

  • Market News | VIX | Trader Talk | Futures | Dec 6, 2014, 10:09 AM

    The Week in VIX Indexes and ETPs - 12/1 - 12/5

    The Week in VIX Indexes and ETPs - 12/1 - 12/5

    With the S&P 500 racking up more record high closes last week volatility indexes dropped to levels expected when there is a strong bull market run combined with a lack of concern regarding a pull back for stock prices. We also got past the employment number, which did have a few traders on edge, without the stock market not visiting lower levels.  The next big economic event on the horizon is the FOMC Rate Decision coming out the afternoon of December 17th. Any traders concerned about the[...]

  • Fill 'Er Up... No, Just Check the Oil

    Fill 'Er Up... No, Just Check the Oil

    Last week I did something I haven’t done for 5 years; I filled my gas tank for under $3 gallon. This got me to thinking about ways to lock in current prices without pumping and storing hundreds of gallons of explosive liquids in my garage. We know the cliché, “there’s an app for that!” the same can be said for ETFs, “there’s an ETF for that!”. Doing a quick search for Exchange Traded Fund and “unleaded fuel” I found the UGA the United States[...]

  • Market News | Trader Talk | Education | Futures | Strategy | Dec 2, 2014, 3:15 PM

    Performance Divergence Among Asian ETFs

    Performance Divergence Among Asian ETFs

    One of the nice things about ETFs is the broad diversity they offer in terms of exposure to a vast variety of stock sectors within the US -- but they also have exposure to a growing number of international countries (and in some cases, multiple choices within a single country or region), commodities, currencies, volatility, bonds, etc.  All of which can be traded in a single brokerage account (or brokerage retirement account).  In general, we tend to look for outperforming and underperforming[...]

  • Market News | VIX | Trader Talk | Education | Futures | Dec 1, 2014, 3:35 PM

    Free Webcast and a Cyber Monday Deal

    Free Webcast and a Cyber Monday Deal

    Tomorrow Mark Sebastian and I will be hosting a webcast at 3:30 pm Chicago time to discuss our recent paper on leveraging buywrite strategies along with a discussion of preliminary results for a leveraging SPX put selling strategies. There’s still time to register – www.cboe.com/webcasts CBOE is on the “Cyber-Monday” bandwagon offering deeply discounted online access to many of our upcoming classes. Mark Sebastian and I will be giving on of these discounted classes a week[...]