Market News Archives - CBOE Blogs

  • Market News | Jul 6, 2015, 8:25 AM

    The Weekly Options News Roundup - Holiday Week Edition

    The Weekly Options News Roundup - Holiday Week Edition

    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. Watch VIX and TYVIX as Uncertainty in Europe Grows Greece’s debt crisis has Jon Najarian keeping an eye on two key volatility indexes. The VIX Index, a measure of the S&P 500 and the TYVIX Index, a measure 10-year Treasury Notes, can both be used to monitor volatility as a potential exit of Greece from the[...]

  • Market News | Jul 6, 2015, 7:16 AM

    Big Last Week for VIX re: Backwardation, Big Moves & Volume, ETH, Put/Call Ratio, and Bollinger Bands

    Big Last Week for VIX re: Backwardation, Big Moves & Volume, ETH, Put/Call Ratio, and Bollinger Bands

    After the news broke last Sunday (June 28) regarding the closing of banks in Greece, worldwide markets for stocks and oil plunged, and investors sought assets that could rise and serve as diversifiers. The VIX® July futures prices responded by rising from 14.525 on June 26 to 17.375 on the next trading day (June 29). Below are seven key points about VIX action during this past big week – these points could be of interest to technical analysts who are looking for trading signals, and to[...]

  • Market News | Jul 5, 2015, 7:00 AM

    The Week in Russell 2000 Trading - 6/29 - 7/2

    The Week in Russell 2000 Trading - 6/29 - 7/2

    During all the market excitement on Monday last week the Russell 2000 dropped 2.6% while the large cap focused Russell 1000 lost 2.1%. The real difference between small cap and large cap stocks occurred after the dust settled from Monday. The Russell 1000 was able to gain 0.9% after to finish the week down 1.2% while the Russell 2000 did a whole lot of nothing and finished the week down 2.5%. This is the first time in a while that large cap stocks have dominated and is a bit surprising since the[...]

  • Market News | Jul 4, 2015, 12:55 PM

    The Week in VIX - 6/29 - 7/2

    The Week in VIX - 6/29 - 7/2

    VIX rallied over 34% on Monday as the Greece situation worsened and global equity markets sold off. The front month July VIX contract gained just under 20%. As the week progressed we gained insight into June economic activity with an unusual Thursday release of the non-farm payroll report. The stock market moved on quickly and VIX and the July future both finished the week with a 16 handle.  The curve, which moved to backwardation on Monday finished the week in contango, but a much flatter[...]

  • Market News | Jul 4, 2015, 8:59 AM

    The Week in Volatility Indexes and ETPs - 6/29 - 7/2

    The Week in Volatility Indexes and ETPs - 6/29 - 7/2

    We had the most exciting market action during the holiday shortened week. As everyone knows we can thanks the cradle of civilization Greece for all the hub bub. On Monday the S&P 500 was down over 2% for the first time since October of last year. VIX reacted accordingly by rising over 34% on the day for the biggest one day move in over two years. Despite the S&P 500 rebounding a bit, the VXST – VIX – VXV – VXMT curve continues to signal some concern. The VXST to VIX premium[...]

  • Market News | Jul 2, 2015, 11:56 PM

    Earnings Next Week - 7/6 - 7/10

    Earnings Next Week - 7/6 - 7/10

    Alcoa kicks things off, but it is still a pretty light week.  We won't have to wait for long as the earnings floodgates always open just after AA's numbers come out.  Three years of earnings history reaction for the three stocks reporting next week -

  • VXX Block Trade from Monday

    VXX Block Trade from Monday

    Monday of this week was one of the more exciting days we have had in 2015. That’s probably an understatement since VIX futures volume was the highest it has been this year. When the S&P 500 is down and volatility is up there are traders always looking to take the other side of the move. Either through selling volatility or through getting long the stock market. The iPath S&P 500 Short Term Futures ETN (VXX) market is one instrument that can move quickly to the upside when the S&P[...]

  • Market News | Trader Talk | Strategy | Trade Ideas | Jun 30, 2015, 3:15 PM

    Bullish EEM Trade from Monday

    Bullish EEM Trade from Monday

    As CBOE expands the number of markets available for trading to include foreign indexes we are going to do the same in this space every Tuesday through taking a look at derivatives based on the MSCI family of indexes.  With the weakness in global markets on Monday I decided to search around for a trade in EEM ETF options that may be trying to take the other side of low equity prices. The daily chart below shows that EEM was down about 2.4% which was a bit more than the drop in[...]

  • Market News | Jun 30, 2015, 9:53 AM

    Ignore the Noise Coming From Greece and All Else

    Ignore the Noise Coming From Greece and All Else

    I often talk about the need to focus on markets and the price action, ignoring the noise from the crowd.  Doing will often help you sidestep dangerous advice designed to twist your mind.  We can consider all the excuses or reasons for selling - there are a million of 'em - but at the end of the day it is the market action, the effect and not the cause that will be our guide.  The first step is understanding the technical condition, sentiment and indicators.  These will always[...]

  • Market News | VIX | Trader Talk | Futures | Strategy | Jun 29, 2015, 5:52 PM

    Today in VIX, SPX, and RUT - 6/29/2015

    Today in VIX, SPX, and RUT - 6/29/2015

    A lot went on today as the Greece thing seemed to come to a head. Below are some highlights with respect to the CBOE Volatility Index, the S&P 500, and the Russell 2000 with respect to the reaction of global markets to the news out of Greece. Spot VIX rose just over 34% and the front month July futures contract was up almost 20%. Volume in VIX futures appears to have topped 400,000 for the first time this year. July and August settled within a tick of each other which is a positive for the long[...]

  • Market News | VIX | Trader Talk | Jun 29, 2015, 5:08 PM

    Five Volatility Indexes Rose More Than 30% Today, As Worldwide Stocks and Oil Prices Fell on News Out of Greece

    Five Volatility Indexes Rose More Than 30% Today, As Worldwide Stocks and Oil Prices Fell on News Out of Greece

    In the past couple of days, news out of Greece regarding capital capital controls and bank closings had a worldwide negative impact on stock and oil prices, while five of CBOE’s volatility indexes rose more than 30%, and volume in VIX futures soared to an estimated 415,000 contracts. After news about the closures of Greek banks broke over the weekend, VIX futures volume in the 5 pm (Sunday) to 2 am CT session was a record 32,617 (estimated) contracts, an all-time record for that time period. Investors[...]

  • Market News | Jun 29, 2015, 10:59 AM

    Russell 2000 (RVX) Volatility on the Rise

    Russell 2000 (RVX) Volatility on the Rise

    After posting new highs last week (1296.00 on 6/23), the Russell 2000 has slipped in four consecutive days closing Friday at 1279.79 (-1.25%).  With this morning’s markets reacting sharply lower on the news of Greece closing its banks temporarily, a closer look at the CBOE Russell 2000 Volatility Index is warranted.  Traded on the CBOE, the CBOE Russell 2000 Volatility Index options can offer an effective hedge.  As highlighted in the chart below, the CBOE Russell 2000 Volatility[...]

  • Market News | Jun 29, 2015, 10:13 AM

    Chart Risks - Weekly Market Outlook

    Chart Risks - Weekly Market Outlook

    Last week's strong start for the market faded rather quickly once it became clear Greece wasn't simply going to be offered a bailout package just because it wanted one. In fact, by the time all was said and done, stocks actually lost ground last week, not to mention ended the week in near-bearish mode.  News out of Greece will likely cause some continued market swings, in both directions, until it is more officially resolved. News out of Greece will likely cause some continued market swings, in both directions, until it[...]

  • Market News | VIX | Trader Talk | Education | Jun 28, 2015, 10:59 AM

    The Week in Russell 2000 Trading - 6/22 - 6/26

    The Week in Russell 2000 Trading - 6/22 - 6/26

    Both indexes were lower last week, but the Russell 2000 (RUT) slightly outperformed the Russell 1000 (RUI) and continued to maintain a wide performance gap for 2015. The chart below indexes both the RUT and RUI to 100 as of the last day of 2014 to get an apples to apples visual of their respective performance. As of Friday RUT was up 6.23% while RUI has gained 2.58% this year. The CBOE Russell 2000 Volatility Index (RVX) was down 0.05 for the week finishing at 16.18 while the CBOE Volatility[...]

  • Market News | Jun 27, 2015, 12:12 PM

    The Week in VIX - 6/22 - 6/26

    The Week in VIX - 6/22 - 6/26

    VIX was up slightly last week, but the futures took their own path and were lower across the board. The July premium went from about 1.50 to 0.50 relative to spot VIX which is a bit surprising since we have the monthly employment report coming on Thursday before we all enjoy the birth of our country with a long weekend. I came across a usual spread trade on Friday, at least unusual at first glance. There was a seller of VIX Jul 18 Calls at 0.61 who purchased VIX Jul 21 Calls at 0.40 for a net credit[...]