Market News Archives - Cboe Blogs

  • Market News | VIX | Blogging Options | Trader Talk | Futures | Trade Ideas | Mar 19, 2016, 2:38 PM

    Weekend Review - Russell 2000 Options and Volatility - 3/14 - 3/18

    Weekend Review - Russell 2000 Options and Volatility - 3/14 - 3/18

    I guess I have to try to work some sort of St. Patrick’s Day theme in here since the Russell 1000 (RUI) went from red to green on the year last week, but I’m too worn out to come up with anything clever.  Also, it is difficult to get too excited over an index that is up 0.05% for the year.  Since I’m trying to be funny, here’s a lame attempt, the Russell 2000 (RUT) remains in a rut for 2016, even after gaining 1.3% last week the small cap benchmark is still 3% lower[...]

  • Market News | VIX | Futures | Mar 18, 2016, 3:00 PM

    The Weekly Options News Roundup – 3/18/2016

    The Weekly Options News Roundup – 3/18/2016

    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. New Options Flexibility This Monday, CBOE will begin offering FLEX Index Options with Asian and Cliquet style settlement. These new exchange-traded exotic options are particularly appealing to the insurance industry, giving indexed annuity writers new options-based hedging alternatives.  For more information, see[...]

  • Market News | VIX | Futures | Mar 18, 2016, 12:45 PM

    CBOE VIX Options Volume Surges

    CBOE VIX Options Volume Surges

    CBOE VIX® option volume for March is averaging well over 700K contracts as realized volatility for the index stabilizes near 95% and traders marvel at the 50% retracement in the index from the 30 handle highs of February 11th.  Nearly 10M VIX contracts have traded in the first 18 days of the month, with calls leading puts 8:3, suggesting total monthly volume may top 15M contracts for the first time in six months. Large call spreads are driving much of the volume, including ratio spreads[...]

  • Market News | VIX | Blogging Options | Trader Talk | Futures | CBOE Memories | Mar 17, 2016, 9:02 AM

    VIX Network Discussion at FIA Boca

    VIX Network Discussion at FIA Boca

    Yesterday afternoon at the 41st Annual International Futures Industry Conference in Boca Raton, CBOE and S&P Dow Jones Indices teamed up for a session highlighting the growing use of VIX around the world. Reid Steadman from S&P Dow Jones Indices offered a brief welcome address where he noted the various markets where participants have access to a consistent measure of implied volatility.  He underscored that a wide variety of equity markets including India, Australia,[...]

  • Market News | Blogging Options | Trader Talk | Strategy | Trade Ideas | Mar 17, 2016, 8:14 AM

    Earnings Week of 3/21 - 3/25

    Earnings Week of 3/21 - 3/25

    It's a very quiet week next week on the earnings front with the highlight being NKE.  The numbers below represent three years of history.   After the ticker the columns show the biggest gain, biggest drop, average move (non-directional) and stock price reaction last quarter.  

  • Market News | Education | Mar 14, 2016, 3:43 PM

    March 22 Panel at CBOE on Accessing the Volatility Risk Premium with Cash-Secured Put Writing

    March 22 Panel at CBOE on Accessing the Volatility Risk Premium with Cash-Secured Put Writing

    Presentations and a panel discussion on the topic of - Accessing the Volatility Risk Premium with Cash-Secured Put Writing will occur on Tuesday March 22, 2016 from 5:00 PM to 6:45 PM at Chicago Board Options Exchange (CBOE), 400 So. La Salle St., (enter on Van Buren Street), Chicago, 60605   http://bit.ly/CAIA-March22 ISSUES Issues to be discussed include – Has there been a Volatility Risk Premium that can facilitate enhanced risk-adjusted returns for index options-selling[...]

  • Market News | Mar 14, 2016, 2:38 PM

    Bracketology – Strong Returns for BXMD and CMBO Indexes Since Mid-1986

    Bracketology – Strong Returns for BXMD and CMBO Indexes Since Mid-1986

    While much of this month’s bracketology focus is on basketball tournaments, the chart below shows investment returns for eight benchmark indexes since mid-1986. The chart includes four benchmark indexes (introduced in 2015) that invest in S&P 500® (SPX) options.  In the chart the top two indexes in terms of annualized returns were the CBOE S&P 500 30-Delta BuyWrite Index (BXMD) and the CBOE S&P 500 Covered Combo Index (CMBO). DECCRIPTIONS FOR FOUR BENCHMARK INDEXES THAT[...]

  • Market News | Trader Talk | Trade Ideas | Mar 14, 2016, 12:59 PM

    Earnings Week of 3/14 - 3/18

    Earnings Week of 3/14 - 3/18

    Apologies for being late to the game, luckily we do have some big names reporting later this week so this blog may still be useful for many readers. The numbers below represent three years of history.   After the ticker the columns show the biggest gain, biggest drop, average move (non-directional) and stock price reaction last quarter.

  • Market News | Mar 14, 2016, 12:28 PM

    Weekly Market Outlook - Cleared Some Hurdles

    Weekly Market Outlook - Cleared Some Hurdles

    Though it didn't hit the ground running last week, a strong Friday session translated into a fourth straight week. of gains. Better still, the S&P 500 (SPX) (SPY) managed to just clear a major technical hurdle, and though it's ripe for some profit-taking, investors may finally be confident enough in the current rally to keep it going. The beginning of this week, however, is critical if the advance is going to last. We'll weigh the risks and rewards after a quick preview of this week's potentially[...]

  • Market News | VIX | Blogging Options | Trader Talk | Futures | Trade Ideas | Mar 12, 2016, 10:55 AM

    Weekend Review - VIX Options and Futures - 3/7 - 3/11

    Weekend Review - VIX Options and Futures - 3/7 - 3/11

    VIX dropped just over 2% which isn’t that much considering we got a 1% rise in the stock market.  The curve remains in a fairly common state of contango.  Standard March futures settle Wednesday on the open and the spread of over a point also makes me wonder if volatility traders are buying into higher stock prices. I did a little more digging on VIX price action, really just looking for the 2016 intraday-low which I assumed occurred last week.  I assumed wrong. [...]

  • Market News | VIX | Blogging Options | Trader Talk | Education | Strategy | Mar 12, 2016, 8:40 AM

    Weekend Review - Volatility Indexes and ETPs 3/7 - 3/11

    Weekend Review - Volatility Indexes and ETPs 3/7 - 3/11

    Three out of the four S&P 500 based volatility indexes dropped last week with the longer term focused VXMT rising slightly.  I went on a data fishing expedition with respect to weeks where VXMT and the S&P 500 rose, but couldn’t find a definitive patters.  I even looked at the predictive power going out as far as six months and got nada.  I did find out that both the S&P 500 and VXMT have risen in sync 52 times since 2008, which is interesting and a bit surprising,[...]

  • Market News | Blogging Options | Mar 11, 2016, 4:32 PM

    CBOE Weekly VIX Indexes Report

    CBOE Weekly VIX Indexes Report

    The Curious Effect of ECB’s Stimulus Package on the EUVIX Index On Thursday, ECB President Mario Draghi announced a cut in interest rates and purchases of corporate bonds. In the same breath, Mr. Draghi said he hoped there would be no further cuts.  The Euro promptly dropped to $1.08, then rebounded to $1.12 by the close.   Yet the CBOE/CME FX Euro Volatility Index (Ticker: EUVIX), the expected volatility of the EUR/USD rate, decreased from 12.28 to 10.85 (using closing values) on[...]

  • Market News | Mar 11, 2016, 4:13 PM

    Open Interest for Options on MSCI Emerging Markets Index (MXEF) Grows to 9,855 Contracts

    Open Interest for Options on MSCI Emerging Markets Index (MXEF) Grows to 9,855 Contracts

    Open interest for options on the MSCI Emerging Markets Index (MXEF)<http://www.cboe.com/micro/msci/mxef/default.aspx> grew from 98 contracts in mid-January to 9,855 contracts yesterday. Over the past year several institutional investors have expressed to me their 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. KEY FEATURES OF MXEF OPTIONS Key[...]

  • Market News | Mar 11, 2016, 1:26 PM

    The Weekly Options News Roundup – 3/11/2016

    The Weekly Options News Roundup – 3/11/2016

    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 Bell Ringing Ceremony for Gender Equality On Monday, CBOE hosted a closing-bell ringing ceremony featuring representatives from Women in ETFs, who, to commemorate International Woman’s Day on Tuesday, rang the bell for gender equality.  The event at CBOE kicked-off a tour of exchanges around the world for[...]

  • Market News | Technical Analysis & Charts | VIX | Futures | Mar 7, 2016, 9:37 AM

    BigTrend.com Weekly Market Outlook - How Long A Pause?

    BigTrend.com Weekly Market Outlook - How Long A Pause?

    Friday's finish was a lackluster one, possibly hinting that this leg of the rally has finally run out of gas and the bulls need a breather. Of course, after what was nearly a 10% runup from the mid-February low, a break for the bulls is neither surprising nor especially troubling just yet. The crux of the matter is when, where, and if any rest period for the rally comes to a close and the bullishness is rekindled. We'll look at the line in the sand in a moment, right after a quick run-down of last[...]