Market News Archives - CBOE Blogs

  • Market News | VIX | Sep 20, 2015, 7:00 AM

    The Week in Russell 2000 Trading - 9/14 - 9/18

    The Week in Russell 2000 Trading - 9/14 - 9/18

    Once the dust had settled last week, large cap stocks dropped slightly with the Russell 1000 losing 0.10%.  Small cap stocks were the place to be, at least on a week over week basis, as the Russell 2000 rose 0.48%.  It was a frantic trading week due to the first FOMC meeting in a very long time that had some debate and uncertainty as to what the ‘Fed was going to do’.  They did nothing and small cap stocks liked it more than large cap stocks. The relationship between the[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Sep 19, 2015, 12:00 PM

    The Week in VIX - 9/14 - 9/18

    The Week in VIX - 9/14 - 9/18

    VIX was slightly lower despite the S&P 500 dropping a little last week.  I would not read anything into this slight market anomaly(both SPX and VIX dropping last week).  VIX actually showed the type of behavior we are accustomed to with equity implied volatility leading up to and after an earnings report.  Just think of the FOMC announcement as a kind of earnings announcement for the equity markets. The September contract settled Wednesday last week and now October is the front[...]

  • Market News | VIX | Trader Talk | Education | Sep 19, 2015, 5:42 AM

    The Week in Volatility Indexes and ETPs - 9/14 - 9/18

    The Week in Volatility Indexes and ETPs - 9/14 - 9/18

    All four of the S&P 500 oriented volatility indexes dropped last week as we finally got the September FOMC meeting behind us.  At this point there are two more meetings in 2015.  What I find interesting is VXV, which is a measure of 3 month expected volatility held up more than the other three indexes.  It just so happens that 3 months from this week is also the final FOMC meeting of the year. In the ETN space, VXX, UVXY, and TVIX gave up more of the recent gains despite the VIX[...]

  • Market News | VIX | Blogging Options | Sep 18, 2015, 3:00 PM

    The Weekly Options News Roundup – 9/18/2015

    The Weekly Options News Roundup – 9/18/2015

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast and online and social media outlets. All Eyes on the Fed It was all about the Fed this week – would they or won’t they?  Market participants kept close tabs on the CBOE Volatility Index this week as it drifted slightly lower heading into yesterday’s no hike announcement. "VIX at 24 Leaves U.S. Stocks With No Road Map for Fed[...]

  • Market News | Education | Sep 18, 2015, 12:43 PM

    TYVIX Weekly Review: Treasury Volatility Yawns Following Much-Hyped Fed Meeting

    TYVIX Weekly Review: Treasury Volatility Yawns Following Much-Hyped Fed Meeting

    The financial world is familiar with volatility smiles and volatility smirks. This week we were treated to a volatility yawn. Treasury and equity volatility declined all the way into the Federal Open Market Committee’s Wednesday-Thursday meeting as investors concluded that the FOMC would probably not raise the federal funds target rate – the FOMC had repeatedly voiced its concern about too little global growth and too little inflation.  But all was not ho-hum on Thursday. A moment[...]

  • Market News | Sep 15, 2015, 12:45 PM

    If September is Bad For Markets, October Can Be Worse (or better)

    If September is Bad For Markets, October Can Be Worse (or better)

    Some of the worst market action has occurred during the month of September.  Statistically, it is the worst performer of the twelve in the calendar. Fresh in our minds is the 2008 financial crisis, which started to show cracks early in the year but this week we 'celebrate' the seventh anniversary of the stock market being brought to its knees.  It was a sobering time for all involved, not a stock left unscathed by the carnage of a precipitous drop in the indices.  The selling was so[...]

  • Market News | Sep 14, 2015, 10:14 AM

    Dollar Caution - Weekly Market Outlook

    Dollar Caution - Weekly Market Outlook

    The market may have peeled back off of its highs hit last week, but even with that dip the S&P 500 (SPX) (SPY) managed to close on Friday a solid 2.0% better than where it ended the prior Friday. It remains to be seen if stocks can sustain the uptrend; there are strong technical arguments from both sides of the fence. The good news/bad news is, things should come to a head this week and force the bulls and the bears to play their hand. Once they do (for better or worse), the market will get much[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Sep 13, 2015, 9:59 AM

    The Week in VIX - 9/8 - 9/11

    The Week in VIX - 9/8 - 9/11

    VIX dropped last week, which it tends to do when the S&P 500 is up 2%, but the futures curve remains in a state of backwardation.  The continued backwardation honestly surprises me when the risk everyone is talking about comes after September contracts settle on the open Wednesday of this week.  It may just be that there is more to be worried about than the pending Fed announcement. The weekly VIX curve shifted lower as well.  Having five consecutive weekly VIX futures expirations[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Sep 12, 2015, 10:43 AM

    The Week in Volatility Indexes and ETPs - 9/8 - 9/12

    The Week in Volatility Indexes and ETPs - 9/8 - 9/12

    The VXST – VIX  - VXV – VXMT curve shifted dramatically to the downside last week in response to the S&P 500 recovering about 2% of recent losses.  The highlight here for me is that VXST is still at a premium to VIX, although the difference is very slight.  All eyes are on the Fed this coming week.  I’m going to attribute this short term volatility premium to the market preparing for the known unknown of how the financial markets will react to the Fed statement. As[...]

  • Market News | Sep 11, 2015, 3:00 PM

    The Weekly Options News Roundup – 9/11/2015

    The Weekly Options News Roundup – 9/11/2015

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast and online and social media outlets. The “Father of Financial Futures” and Creator of Listed Options Unite Environmental Financial Products, LLC (EFP), headed by Dr. Richard Sandor, universally recognized as the “father of financial futures,” has joined with CBOE to create the American Financial Exchange (AFX), an electronic marketplace[...]

  • Market News | Sep 11, 2015, 1:39 PM

    TYVIX Weekly Review: Volatility Caught Between China and a Fed Rate Hike

    TYVIX Weekly Review: Volatility Caught Between China and a Fed Rate Hike

    Between China’s softened economic landing and a possible Federal Reserve rate hike next week when Fed policymakers meet, volatility has been lifted by the Sturm and Drang of almost daily economic announcements from Asia, Europe and the U.S. Volatility is now reverting to more normal levels. But what is normal? As seen in Figure 1, the new normal for the CBOE VIX Index is now closer to 25, which is 40 percent higher than at the beginning of 2015. EUVIX is up 19 percent, and TYVIX up 4 percent.[...]

  • Market News | VIX | Trader Talk | Sep 10, 2015, 11:00 AM

    Earnings Next Week - 9/14 - 9/18

    Earnings Next Week - 9/14 - 9/18

    We are still between earnings seasons so there are only a few companies reporting next week. As always the table below represents the last 12 quarters of post earnings stock price reactions.

  • Market News | Trader Talk | Strategy | Trade Ideas | Sep 9, 2015, 3:05 PM

    Trader Taking Advantage of SPX Weeklys and Extended Trading Hours

    Trader Taking Advantage of SPX Weeklys and Extended Trading Hours

    Once a week I like to report about a block trade in this space.  This week I’m going to discuss a trade, but it does not qualify as a block trade.  In fact it is a one lot.  However, this trade is pretty interesting as it takes advantage of two recent developments in the option markets - Weeklys and Extended Trading Hours. I have neighbor who is a pretty frequent trader in the SPX option and S&P futures market.  We’ll call him Larry to protect his identity. [...]

  • Market News | Sep 8, 2015, 2:53 PM

    Key Levels & Fed Expectations - Weekly Market Outlook

    Key Levels & Fed Expectations - Weekly Market Outlook

    The market never could get the rebound rally from two weeks ago restarted last week. In fact, between Tuesday's near -3% stumble and Friday's 1.5% lull, the S&P 500 (SPX) (SPY) finished the week on the defensive more so than the offensive. The bulls still have their work cut out for them. And yet... While stocks are facing the wrong direction, stocks are still on the fence, and the right nudge -- whether it be a recovery in China or some encouraging interest rate news from the Fed -- stocks[...]

  • The Week in Russell 2000 Trading - 8/31 - 9/4

    The Week in Russell 2000 Trading - 8/31 - 9/4

    The Russell 1000 (RUI) was down 3.31% last week and the Russell 2000 (RUT) lost 2.3%.  This outperformance (I know it doesn’t feel like outperformance) of small caps leads me to ponder the true concerns of market participants that actually put money to work.  The press continues to focus on the Fed’s next move, which will be known in just under two weeks on September 17th.  However, small cap stocks, as a group, are more exposed to the domestic economy than large cap stocks. [...]