Market News Archives - Cboe Blogs

  • Market News | VIX | Blogging Options | Dec 11, 2015, 2:00 PM

    The Weekly Options News Roundup – 12/11/2015

    The Weekly Options News Roundup – 12/11/2015

    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. A Hero’s Welcome On Wednesday, CBOE hosted recent Congressional Medal of Honor recipient U.S. Army Capt. Florent Groberg for an opening bell-ringing ceremony.  Exchange staff and traders gathered on the CBOE trading floor, cheering patriotically and giving Capt. Groberg a well-deserved hero’s welcome. The[...]

  • Market News | Dec 11, 2015, 1:21 PM

    TYVIX Weekly Review: Volatilities Drift Up to October Levels as Markets Await Tighter Monetary Policy Cycle

    TYVIX Weekly Review: Volatilities Drift Up to October Levels as Markets Await Tighter Monetary Policy Cycle

    The markets are pondering the effect the first target rate change in seven years will have on volatility (Fed rates have hovered between zero and one-quarter percent since December 2008). The Federal Open Market Committee meets on December 15-16 and is widely expected to announce a rate increase at the conclusion of the two-day meeting. Thus far, the imminent prospect of tighter monetary policy has made few waves.  In the equity market, the CBOE Volatility Index (VIX Index) is up for the week,[...]

  • Market News | Strategy | Dec 9, 2015, 2:00 PM

    Is The Fed’s CCAR Pushing Up the SKEW Index and Driving More Demand for O-T-M SPX Puts?

    Is The Fed’s CCAR Pushing Up the SKEW Index and Driving More Demand for O-T-M SPX Puts?

    In a December 8 Bloomberg news report - “Who's the Bear Driving Up the Price of U.S. Stock Options?” - Joseph Ciolli wrote – “For more than a year, dealers in the U.S. equity derivatives market have noted a widening gap in the price of certain options. If you want to buy a put to protect against losses in the Standard & Poor’s 500 Index, often you’ll pay twice as much as you would for a bullish call betting on gains. New research suggests the divergence is[...]

  • Market News | Technical Analysis & Charts | Dec 9, 2015, 11:39 AM

    An Early Retrospective on ^SPX and ^RUT

    An Early Retrospective on ^SPX and ^RUT

    The end of any calendar year gives us a perfect opportunity to look back and evaluate the year that was, and perhaps prognosticate about the year that may be. The ^SPX closed @ 2,058.90 on 12/31/14 – up nearly 12% in 2014. As I type, the ^SPX is 2,068 – up fractionally for 2015. Yesterday and today we traded either side of unchanged on the ^SPX for 2015. The broad market is oscillating between 2080 and 2,052. Yesterday the Energy sector was weighing heavily on the market and when Crude[...]

  • Market News | Dec 7, 2015, 4:35 PM

    Weekly Market Outlook - Will Overhead Hurdles Constrain?

    Weekly Market Outlook - Will Overhead Hurdles Constrain?

    Despite Thursday's severe drubbing (the potential beginning of a bigger meltdown), stocks finished the week on a very bullish note, gaining more than 2.0% on Friday. That was enough to put the market back in the black for the week, even if just barely. The strong finish to last week, however, at least sets a bullish tone headed into the new trading week. And yet, none of the key indices have cleared their major technical hurdles that have been in the way for the past month... give or take. We'll[...]

  • Market News | Dec 5, 2015, 11:04 PM

    Weekly Review - VIX Futures and Options - 11/30 - 12/4

    Weekly Review - VIX Futures and Options - 11/30 - 12/4

    The VIX curve shifted lower on the week after a scary Thursday and quick recovery on Friday.  I do find it interesting that VIX is slightly under 15.00 instead of in the 12’s after a 40 point move in the S&P 500.  I guess the story clouds are going to keep the lows for VIX at higher levels over the near term. The blip on the VIX short term future chart that keeps moving to the left is the December 23rd contract.  The holiday effect that we use to note for December[...]

  • Market News | Dec 5, 2015, 9:56 PM

    Weekly Review - Volatility Indexes and ETPs - 11/30 - 12/4

    Weekly Review - Volatility Indexes and ETPs - 11/30 - 12/4

    This week I’m reporting in from Singapore where we are about to open the Asian version of The Options Institute at the Singapore Exchange (SGX).  I don’t have a feel for the market activity from last week, but I can read the numbers and can only imagine what a ride it was for some traders last week.  I added the Thursday close to the VXST – VIX – VXMT – VXV graph that shows up below since a week over week chart just doesn’t do justice to what occurred[...]

  • Market News | Dec 5, 2015, 12:55 AM

    Weekly Review - Russell 2000 Index and Volatility - 11/30 - 12/4

    Weekly Review - Russell 2000 Index and Volatility - 11/30 - 12/4

    I put a blog up a couple of weeks ago about the Russell 2000 (RUT) usually doing well in December on both an absolute and relative basis.  Although it is early, small cap stocks as represented by RUT have dropped 1.23% while the Russell 1000 (RUI) is up 0.40%. The RVX / VIX premium has been zig zagging with the rest of the equity market action and finished the week close to this year’s average of 18% after dropping down to 10% on Thursday.  Confusion seems to abound regarding equities[...]

  • Market News | Dec 4, 2015, 2:50 PM

    Weekly Stock Market Commentary: SPX Chart Now Has Heavy Resistance in the 2080-2100 Area

    Weekly Stock Market Commentary: SPX Chart Now Has Heavy Resistance in the 2080-2100 Area

    The $SPX chart now has heavy resistance in the 2080-2100 area, where it spent most of the previous two weeks. The support at 2020 (November lows) is still in place as well, and will likely be tested in the coming days. Both equity-only put-call ratios are on sell signals, and they are now beginning to race higher on their charts. Market breadth made a valiant attempt to get back on track last week. However, that strength in breadth was fleeting, and now both breadth oscillators have rolled over to[...]

  • Market News | VIX | Blogging Options | Dec 4, 2015, 2:31 PM

    The Weekly Options News Roundup – 12/4/2015

    The Weekly Options News Roundup – 12/4/2015

    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’s Continued Innovation Evolution Throughout the year, CBOE has demonstrated its commitment to product innovation by creating a diverse mix of products suitable for a broad range of customer needs.  The exchange continued down this path with its recent announcement that it will soon list options on the FTSE[...]

  • Market News | Dec 3, 2015, 3:27 PM

    Santa Claus Rally Hits Some European Ice

    Santa Claus Rally Hits Some European Ice

    Global market trade today has been dominated by reaction to the European Central Bank’s (ECB) decision and statement following their most recent meeting, which is being perceived as disappointing relative to expectations. Currencies and Bonds are at the forefront of the day’s activity, with the Euro (Currency) seeing it’s largest one day move since 2009 (in percentage terms). FXE, the Euro ETF proxy, is up over 3.1% to 107.20 after closing below 104.00 yesterday. Source: LiveVol[...]

  • Market News | Dec 1, 2015, 10:06 PM

    CBOE RMC Asia - Day 2 Recap

    CBOE RMC Asia - Day 2 Recap

    Day 2 of CBOE’s first Risk Management Conference is now history and I believe the quality of presentations and the discussion was on par with the more established European and US versions of the conference. The day started with welcoming remarks from Ed Tilly, CEO of CBOE Holdings.  He noted that CBOE is expanding education into Asia through a collaboration with the Singapore Exchange with the establishment of The Options Institute at SGX.  He also noted that CBOE plans to list options[...]

  • Market News | Dec 1, 2015, 2:56 AM

    Directional Options Strategies Discussion at RMC

    Directional Options Strategies Discussion at RMC

    Gus Dhothar from Goldman Sachs Investment Management and William Stephens from Deutsche Bank shared the stage for one for one of the final presentations of the day.  This was a true co-presentation as both Dhothar and Stephens went back and forth discussing each slide.  They covered five different topics – index strategies, single stock option trading, leveraging structured product flow, directional implementation, and finally how to trade China. With respect to index strategies the[...]

  • Market News | Dec 1, 2015, 1:24 AM

    Cross Region Volatility Analysis for Investing and Hedging

    Cross Region Volatility Analysis for Investing and Hedging

    Benoit Meulot from BTG Pactual and Shane Carroll from SG Securities joined up to lead a discussion on Cross-Region Volatility Analysis for Investing and Hedging.  Meulot led things off by discussing the differences in the behavior of different aspects of market volatility among US, European, and Asian markets.  Carroll followed up with a discussion on how market participants approach trading these differences. Meulot’s discussion focused on how supply / demand imbalances impact equity[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Dec 1, 2015, 12:00 AM

    Hedge Funds and Volatility-Based Strategies Discussion at RMC Asia

    Hedge Funds and Volatility-Based Strategies Discussion at RMC Asia

    The first post-lunch presentation in Hong Kong was actually a hybrid presentation / discussion panel.  Things started off with the Chairman of Eurekahedge, Satoshi Iwanaga from Eurekahedge which created and calculates four indexes to measure the performance of different volatility oriented strategies.  This segmentation is logical since strategies that focus on volatility can vary greatly in their process. The four CBOE Eurekahedge Volatility Indexes are: CBOE Eurekahedge Short Volatility[...]