Market News Archives - Cboe Blogs

  • Market News | Strategy | Jul 30, 2015, 1:53 PM

    New Appeal for BXM Index and Buy-write Strategies in 2015

    New Appeal for BXM Index and Buy-write Strategies in 2015

    In a recent news article in Bloomberg, Callie Bost noted this year’s relatively strong performance for the CBOE S&P 500 BuyWrite Index (BXM), and she wrote -- “Traders Score With Buy-Write Options Strategy Tuned to U.S. Calm.  Traders selling calls on stock holdings are beating the S&P 500 for the first time since 2011. The torpor in U.S. equities is proving a bonanza for traders employing an options tactic designed to capitalize on dead markets. …  ‘A churning[...]

  • Market News | Jul 29, 2015, 3:44 PM

    Ten New CBOE Benchmark Indexes - Risk Management and Yield-enhancing Investment Tools

    Ten New CBOE Benchmark Indexes - Risk Management and Yield-enhancing Investment Tools

    Today CBOE announced in a press release that it has created 10 new options-based strategy performance benchmark indexes that are designed to highlight the long-term utility of options as risk management and yield- enhancing investment tools. CBOE will disseminate intra-day values for the new benchmarks beginning August 3, 2015 at the page www.cboe.com/benchmarks. The new benchmark indexes use popular S&P 500® Index (SPX) Weeklys options to create new versions of two of CBOE’s flagship[...]

  • Market News | Jul 29, 2015, 2:21 PM

    Earnings Analysis: Attention on $DECK

    Earnings Analysis:  Attention on $DECK

    Editor's note:  We would like to welcome Park Research LLC @ParkResearch to the CBOE Options Hub family with their look at DECK in front of tomorrow's earnings report.  Now just about every trader knows that both $GOOGL and $NFLX blew out of the water. So, which earnings trade has potential like that this week? Most traders might guess that $AAPL or $AMZN might be just that stock. And that’s very possible. However, I believe that this other stock has potential to blow premium sellers[...]

  • Market News | Strategy | Jul 29, 2015, 12:23 PM

    Facebook Earnings Today - Possible Options Strategy

    Facebook Earnings Today - Possible Options Strategy

    When a trader is making a trade based upon an upcoming earnings report the first thing that they will look at is the at the money (ATM) straddle in the expiration cycle that is closest to expiration. The earnings report for Facebook (FB) is being released this afternoon on July 29th at 4:00 pm ET, immediately after the close. There are weekly options that expire two days later on July 31st. With FB trading at 95.50 let’s take a look at the FB Jul 31st 95.5 calls and puts. The market for the[...]

  • Market News | Jul 28, 2015, 12:25 PM

    Markets Feel Normal Again (Maybe)

    Markets Feel Normal Again (Maybe)

    Though we had four down sessions this past week and drop of 2% for the SPX 500, the action had a more normal feel to it.  What am I talking about?  First and foremost, it was nice for a change the market sentiment was not being driven by Greece.  Since mid-June that has been the case, the unpredictability over a resolution has gripped investors/traders in a panic.  When payment deadlines for Greece passed it was all but assumed the worst would happen and volatility shot through[...]

  • Market News | Futures | Jul 27, 2015, 5:35 PM

    VIX Weeklys Futures Rose Today

    VIX Weeklys Futures Rose Today

    Today the new nearby VIX® Weeklys futures (ticker “31VX/Q5,” with an August 5 expiration) rose about 7% and had a daily settlement value of 15.325. Here is a screenshot of the delayed quotes table at 3:28 pm CT today -  The detailed futures quote table below showed expiration dates, prices, and volumes for VIX futures with the new Weeklys expirations and standard expirations.    Investors with Bloomberg terminals can see detailed VIX futures information[...]

  • Market News | Jul 27, 2015, 11:22 AM

    Where Is The Floor? - Weekly Market Outlook

    Where Is The Floor? - Weekly Market Outlook

    Once the bearish ball got rolling last week, it got rolling in spades. In retrospect, however, the pullback makes sense in terms of when, where, and why. The S&P 500 (SPX) (SPY) as well as the NASDAQ Composite (COMP) both bumped into major technical ceilings, and right on cue, began a retreat that likely isn't over yet. We'll dissect the breakdown below, as always. First though, we need to run down last week's and this week's key economic numbers. Economic Data Though a light week in terms of[...]

  • Market News | VIX | Jul 24, 2015, 3:00 PM

    The Weekly Options News Roundup – 7/24/2015

    The Weekly Options News Roundup – 7/24/2015

    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. A 24/7 VIX? VIX futures are available for trading nearly 24 hours a day….is it time for the VIX Index to be calculated around the clock? “The Case for a 24-Hour VIX” – Steven M. Sears, Barron’s http://on.barrons.com/1JfHYle VIX Futures Weeklys Are Here The CBOE Futures Exchange (CFE) launched[...]

  • Market News | Jul 24, 2015, 2:17 PM

    TYVIX Weekly Review – 7/24/2015

    TYVIX Weekly Review – 7/24/2015

    A Lull in Volatility This week there was a pause in the “Euro ex-Greece” crisis and the plunge in Shanghai stock prices. In addition, Federal Reserve Chair Janet Yellen told Congress in her semi-annual testimony last week that the first Fed Fund target rate increase will come in 2015, and this week’s economic calendar was light. No wonder there was a lull in volatility. TYVIX, CBOE’s real-time benchmark for Treasury volatility, decreased to 5.37 from 6.69 last Friday, which[...]

  • Market News | Jul 24, 2015, 12:07 PM

    Weekly Stock Market Commentary - 7.24.15

    Weekly Stock Market Commentary - 7.24.15

    $SPX now appears to failing at the top of the range, thereby remaining within the 2040 - 2135 trading range. Hence, the $SPX chart remains neutral as long as it's in that trading range. Put-call ratios are mixed, but generally are in an oversold state. The standard ratio continues to rise and is thus on a sell signal.  The weighted ratio, however, has rolled over to a buy signal. Market breadth has been poor lately, and that has caused some concern.  Both ratios have now reached an oversold[...]

  • Market News | Jul 24, 2015, 10:20 AM

    Launch of Trading in VIX Weeklys Futures – More Expirations to Provide More Responsiveness

    Launch of Trading in VIX Weeklys Futures – More Expirations to Provide More Responsiveness

    On the July 23 trading day, CBOE Futures Exchange, LLC (CFE®) launched the first-ever trading of futures with weekly expirations on the CBOE Volatility Index® (VIX® Index). The new VIX Weeklys futures offer more expirations that have the potential to provide more precision and responsiveness for investors. On July 23 the estimated trading volume was more than 200 contracts for the new VIX Weeklys futures (with expirations on August 5 and August 12), and approximately 216,000 contracts[...]

  • Market News | Trader Talk | Trade Ideas | Jul 23, 2015, 2:49 AM

    Earnings Next Week - 7/27 - 7/31 by Jackie Schuler

    Earnings Next Week - 7/27 - 7/31 by Jackie Schuler

    Editors note – Jackie Schuler is a rising Junior at Purdue University and is working as an intern this summer at The Options Institute.  She’s focused on helping Russell Rhoads with compiling this weekly earnings blog, searching out block trades to use as examples in classes, and developing programs focused on the next generation of option traders. It turns out next week has a busier earnings calendar than the current week.  Russell certainly picked a good time to leave[...]

  • Market News | Education | Jul 21, 2015, 2:09 PM

    VIX Near the Bottom?

    VIX Near the Bottom?

    The VIX has a highly negative correlation to the SPX. The VIX is priced upon the time value that is embedded in the premium of SPX options. When stocks fall they usually move much more rapidly to the downside than they move to the upside. As the stocks fall investors rush  to scoop up puts that provide downside protection or grabbing calls should there be a correction. Insurance for a beachside cottage is much more expensive when a hurricane hits ten miles offshore than when there hasn’t[...]

  • Market News | Jul 21, 2015, 10:55 AM

    Panel of Experts in NYC Discusses VIX Weeklys Futures -- To Launch at 3:30 PM CT on July 22

    Panel of Experts in NYC Discusses VIX Weeklys Futures -- To Launch at 3:30 PM CT on July 22

    On July 16 in New York City, a panel of four volatility experts - Mark Chen, Managing Director, Citigroup; Joe Aiken, Managing Partner, Malachite Capital Management; Krag “Buzz” Gregory, Managing Director, Goldman Sachs; and Jim Lubin, Managing Director; CBOE Futures Exchange, LLC (CFE®), had a lively and upbeat discussion on the topic of Managing Portfolios with VIX®Weeklys Futures and Options. CFE plans to list futures with weekly expirations on the CBOE Volatility Index®(VIX)[...]

  • Market News | Jul 20, 2015, 11:55 AM

    Russell 2000 Index Lags on Today’s Rally

    Russell 2000 Index Lags on Today’s Rally

    The momentum in technology and health care stocks continue to lead the large cap U.S. equity market higher.  Alternatively, the Russell 2000 small cap index is trading lower as today’s price action is hovering down towards its 50 day moving average (1258.11). The divergence between the small cap and large cap indices is reflected in their respective volatility indexes. The RVX – VIX spread chart highlights a widening spread as RVX +.49  higher and VIX -.35 from Friday’s[...]