Market News Archives - CBOE Blogs

  • Market News | VIX | Blogging Options | Oct 16, 2015, 2:30 PM

    The Weekly Options News Roundup – 10/16/2015

    The Weekly Options News Roundup – 10/16/2015

    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. Interest Rate Futures thrown a Curve Ball with CurveGlobal CBOE announced today that it has taken a minority stake in CurveGlobal, a new interest rate trading venue.  CurveGlobal is a joint venture between the London Stock Exchange Group, CBOE and major dealer banks.  CurveGlobal will aim to provide customers[...]

  • Market News | Oct 16, 2015, 2:29 PM

    TYVIX Weekly Review: Consensus for Slower Growth Dims Trading Volumes, Volatilities

    TYVIX Weekly Review: Consensus for Slower Growth Dims Trading Volumes, Volatilities

    As reported earlier this week in the Financial Times, the standard deviation for economic forecasts for the U.S., EK, EU and Japan all are near their lows, with survey firm Consensus Economics reporting very little dispersion of GDP year-ahead forecasts. More generally, there is a consensus that worldwide economic growth looks bleak, and that a Federal Fund target rate hike is improbable in the near future. Accordingly, investors are taking a pause. In particular, the volumes of trading in CBOE[...]

  • Market News | Technical Analysis & Charts | Strategy | Oct 16, 2015, 12:28 PM

    Weekly Stock Market Commentary: The Bullish Case is Still Strong

    Weekly Stock Market Commentary: The Bullish Case is Still Strong

    The stock market has taken on a much more bullish tone since the late- September lows.  We had several buy signals on September 30th, and they were well-timed.  The bullish case is still strong, even after $SPX has advanced 150 points this month. The $SPX chart is bullish.  $SPX broke out over 2000 last week, and this week it pulled back to that (general) level before moving to new relative highs once again.  Hence the breakout over 2000 was retested, and that retest was successful. Equity-only[...]

  • Market News | Trader Talk | Trade Ideas | Oct 16, 2015, 10:20 AM

    Earnings Next Week - 10/19 - 10/23

    Earnings Next Week - 10/19 - 10/23

    Next week brings us to the meat of earnings season with almost 60 companies that have weekly options available for trading reporting next week.  With a couple of exceptions (AAL & GOOG) the history below represents the stock price reaction in response to earnings for the past three years.

  • Market News | Oct 14, 2015, 10:00 AM

    Earnings Take Center Stage

    Earnings Take Center Stage

    In my experience option traders fall into one of two distinct camps: single stocks and index/ETFs.  Despite similar contract specifications and pricing models, the mindset required to trade each product type is notably different.  Single stock traders have earnings releases, takeovers, and other company-specific events to worry about, while index traders tend to pay close attention to macroeconomic headlines and global equity and volatility movements.  On average in our markets about[...]

  • Market News | Oct 13, 2015, 3:45 PM

    Some Room To Run Higher - Weekly Market Outlook

    Some Room To Run Higher - Weekly Market Outlook

    Incredibly enough, last week's gain was the biggest weekly gain of the year. The S&P 500 (SPX) (SPY) gained 3.22% last week, and though it was mostly just fortunate timing that allowed for the big week-to-week move, the momentum is impressive nonetheless. The question is, can it last? Answer: Maybe. The rally knocked over some fairly important resistance levels, though a few more remain. Also, the advent of Q3's earnings season could either work for the market or against it. Either way,[...]

  • Market News | VIX | Trader Talk | Futures | Oct 11, 2015, 8:30 AM

    The Week in Russell 2000 - 10/5 - 10/9

    The Week in Russell 2000 - 10/5 - 10/9

    The 4.6% gain for the Russell 2000 (RUT) was the biggest one week gain since late October 2014 when (I think) the market was rebounding from an ebola scare.  Large cap stocks participated in the rally with the Russell 1000 (RUI) rising 3.26%, but this lagged the rebound in small cap stocks.  Despite the ‘win’ for RUT, the Russell 2000 still lags the Russell 1000 by over 1% for 2015 (-3.27 vs. -2.00%). If this past week were homecoming at Volatility High School the[...]

  • Market News | Oct 10, 2015, 12:24 PM

    The Week in VIX - 10/5 - 10/9

    The Week in VIX - 10/5 - 10/9

    A return to normalcy occurred last week with the 18% drop in VIX and 3.26% rally in the S&P 500.   Even the seasonal December pattern moderated a bit and we have a textbook contango curve for the first time since August. On the shorter end of the VIX futures spectrum the curve flattened with a little contango with respect to the October 14th contract versus VIX.  Before Weeklys in the VIX space, when volatility is low the Friday before expiration the soon to expire[...]

  • Market News | VIX | Trader Talk | Education | Futures | Oct 10, 2015, 10:22 AM

    The Week in Volatility Indexes and ETPs - 10/5 - 10/9

    The Week in Volatility Indexes and ETPs - 10/5 - 10/9

    In Chicago we are already getting use to the Bears getting pummeled each week.  This past week bears everywhere took it on the chin as the S&P 500 put up the best weekly performance in 2015.  What I find interesting on the chart below relates to VIX, which was down 18.4% for the week, which is actually the fourth worst week for VIX this year, despite VIX beginning the week over 20.00. VXX dropped about 11% and SVXY was up closer to 12% last week.  However, the choppy[...]

  • Market News | VIX | Blogging Options | Oct 9, 2015, 3:00 PM

    The Weekly Options News Roundup – 10/9/2015

    The Weekly Options News Roundup – 10/9/2015

    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. VIX Weeklys Options Are Here - This Week CBOE added VIX options to its suite of Weeklys contract offerings yesterday.  Volume on the first day was more than 4,300 contracts, while volume through mid-day today was already approaching an estimated 40,000 contracts.  VIX Weeklys options contracts will allow investors[...]

  • Market News | Strategy | Oct 9, 2015, 2:39 PM

    Weekly Stock Market Commentary - The Buy Signals are Piling Up

    Weekly Stock Market Commentary - The Buy Signals are Piling Up

    A week ago, we noted that there were three short-term, oversold buy signals. Now, more buy signals are occurring, and these are of the intermediate-term variety. The last hurdle was cleared today, when the $SPX closed above 2000. Equity-only put-call ratios remain on buy signals, as they continue to decline from recent highs. Market breadth has improved greatly during this most recent rally, and has now reached extremely overbought levels. That is not necessarily a bad thing, for we have often stated[...]

  • Market News | Oct 9, 2015, 1:31 PM

    TYVIX Weekly Update: Volatility Cools as Central Banks Grant a Reprieve

    TYVIX Weekly Update: Volatility Cools as Central Banks Grant a Reprieve

    Volatility feeds off fresh news, especially the bad headlines, and it appears news of the economic slowdown in China and of its impact on emerging markets has been fully digested. It is also clear that central banks will continue to pursue stimulative policies until further notice. In the absence of further shocks, the VIX, TYVIX, EUVIX, BPVIX and JYVIX indexes turned cooler this week.  As the VIX Index decreased, its term structure came closer to contango. Figure 1.  Weekly Update --[...]

  • Market News | VIX | Futures | Oct 9, 2015, 10:44 AM

    VIX Weeklys Options Launched – In VIX Options Chain; More Precision and Responsiveness

    VIX Weeklys Options Launched – In VIX Options Chain; More Precision and Responsiveness

    Yesterday (October 8) was the first day of trading for the VIX Weeklys options, with reported trading volume topping 1,000 contracts. VIX OPTIONS CHAIN A key feature of the new VIX Weeklys options is that they are in the same options chain as the standard-expiration VIX options.  This screenshot below from Bloomberg on the morning of October 9 shows that there now are VIX options expirations on Oct 21, Oct. 28, Nov. 4, Nov. 18, and Dec. 16 (in addition, there are VIX options with longer dated[...]

  • Market News | Trader Talk | Trade Ideas | Oct 8, 2015, 11:00 AM

    Earnings Next Week - 10/12 - 10/16

    Earnings Next Week - 10/12 - 10/16

    Alcoa reported this week which is the unofficial beginning of earnings season.  Next week several financials release numbers which should be interesting considering the continued inaction by the Fed.  As always the numbers below represent stock price reaction to earnings for the last 3 years.

  • Market News | Strategy | Oct 7, 2015, 11:47 AM

    Options on MSCI Emerging Markets Index (MXEF) – Volume of 472 Contracts on Tuesday

    Options on MSCI Emerging Markets Index (MXEF) – Volume of 472 Contracts on Tuesday

    On Tuesday, October 6, the CBOE options on the MSCI Emerging Markets Index (MXEF) had reported volume of 472 contracts (236 call options and 236 put options). Why are several investors expressing more interest in the MXEF options that launched earlier this year? Below are four key reasons I have heard from investors. BIGGER NOTIONAL SIZE FOR CASH-SETTLED INDEX OPTIONS As shown in the chart below, many of the cash-settled index options have notional values that are much bigger than the notional[...]