Market News Archives - CBOE Blogs

  • Market News | VIX | Trader Talk | Futures | Jun 27, 2015, 9:41 AM

    The Week in Volatility Indexes and ETPs - 6/22 - 6/26

    The Week in Volatility Indexes and ETPs - 6/22 - 6/26

    VIX rose less than one half one percent last week as the S&P 500 was down slightly. I would normally say there was not much change in risk perception for the broad US stock market, but that seems to be only true at the 30-day time horizon.   Note the VXST – VIX – VXV – VXMT term structure chart below shows a rise in VXST (9-day), but also a drop in VXV (3-month) and VXMT (6-month) last week. It may just be that despite the continued pushing out of the problems related[...]

  • Market News | Jun 26, 2015, 5:53 PM

    Weekly Stock Market Commentary - 6/26/15

    Weekly Stock Market Commentary - 6/26/15

    The stock market, as measured by the Standard & Poors 500 Index ($SPX) continues to trade in a fairly tight range, which is beginning to frustrate just about everyone. There is support at 2070, and the 2130-2135 area is now strong resistance. As a result, the $SPX chart is neutral. Equity-only put-call ratios are about as noncommital as I can remember. Both are drifting sideways, meaning they're not really on a strong trend of any kind. The market breadth oscillators are also split in their[...]

  • Market News | VIX | Blogging Options | Jun 26, 2015, 1:50 PM

    The Weekly Options News Roundup – 6/26/2015

    The Weekly Options News Roundup – 6/26/2015

    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. Stock Market Less Volatile; Bonds, Not So Much The overall market has seen little volatility over the past few months, but bonds have been on a turbulent ride.  The CBOE/CBOT 10-Year Treasury Note Volatility Index (TYVIX) can help navigate the volatility in bonds, as explained by CBOE’s Research Director[...]

  • Market News | Jun 26, 2015, 11:13 AM

    Follow the RVX and RUT Options, as MarketWatch Notes That Today Could Be “Year’s Biggest Trading Day”

    Follow the RVX and RUT Options, as MarketWatch Notes That Today Could Be “Year’s Biggest Trading Day”

      A June 26 news story in MarketWatch noted that – “Stock-trading volume is expected to surge in Friday’s last moments of trading, as the Russell indexes go through their annual routine of adding and removing stocks.  A massive amount of money is linked to the small-cap Russell 2000 RUT … the large-cap Russell 1000 RUI, … and their siblings. The index funds that track these benchmarks must buy or sell stocks as result of this summertime shakeup that’s[...]

  • Market News | VIX | Trader Talk | Strategy | Jun 25, 2015, 11:25 AM

    Block Trades - One Bullish and One Bearish VIX Option Trade

    Block Trades - One Bullish and One Bearish VIX Option Trade

    When I disagree with someone with respect to an outlook for the market or particular stock I with often use the phrase, “that’s what makes a market”. What I mean by that is it takes people with differing opinions to create a viable and tradeable market. As I was looking at the trading activity in the VIX option arena earlier this week I can across one bullish and one somewhat bearish trade that occurred on the same day. First I’ll take a quick look at the bullish trade. Early[...]

  • Market News | Trader Talk | Jun 23, 2015, 4:06 PM

    This Friday Completes the 2015 Russell Reconstitution Process

    This Friday Completes the 2015 Russell Reconstitution Process

    The last Friday of June means different things to different people. When I was growing up, that was the day before the Rhoads family embarked on their annual vacation to the Florida Gulf Coast. Now that I’m all grown up (which may be debatable at times) and spend most of my time focusing on the financial markets, the last Friday in June represents the annual restructuring of the Russell family of indexes. This process is commonly referred to as the Russell Reconstitution. A couple of weeks[...]

  • Market News | Jun 22, 2015, 5:06 PM

    All-time Record Daily Closing Highs Today for BXY, BXM, PUT, BXR, BXN and LOVOL Indexes

    All-time Record Daily Closing Highs Today for BXY, BXM, PUT, BXR, BXN and LOVOL Indexes

    Six CBOE strategy benchmark indexes all hit all-time record daily closing highs today (June 22) – 1559.33 BXY - CBOE S&P 500 2% OTM BuyWrite 1527.39 PUT - CBOE S&P 500 PutWrite Index 1140.06 BXM - CBOE S&P 500 BuyWrite Index 459.22                   BXN - CBOE Nasdaq BuyWrite Index 218.42                  [...]

  • Market News | Jun 22, 2015, 10:13 AM

    No Progress Since February - Weekly Market Outlook

    No Progress Since February - Weekly Market Outlook

    The market certainly got off on the right foot last week, rallying all the way through Thursday when the NASDAQ Composite (COMP) finally cleared its all-time record high set back in March of 2000. With no other major market index completing the same feat though -- in addition to Friday's pullback somewhat extinguishing the budding rally -- we can say right now that once again stocks are caught between a rock and a hard place. We'll dissect the details below, right after a quick run-down[...]

  • Market News | Jun 21, 2015, 9:30 AM

    The Week in Russell 2000 Trading - 6/15 - 6/19

    The Week in Russell 2000 Trading - 6/15 - 6/19

    Small cap stocks dominated last week as the Russell 2000 (RUT) rose 1.55% and even put up an all-time record close on Thursday. Large cap stocks fared OK with the Russell 1000 (RUI) rising 0.66% last week, but unlike the RUT, RUI did not manage to put in a new all-time closing high. We have almost reached the middle of the year and so far RUT is up 6.64% while RUI has risen 3.05%. Large cap expected volatility is best represented by the CBOE Volatility Index (VIX) which was a tad higher last week,[...]

  • Market News | VIX | Trader Talk | Futures | Jun 20, 2015, 12:37 PM

    The Week in VIX - 6/15 - 6/19

    The Week in VIX - 6/15 - 6/19

    I promise there are two curves on the figure below showing the week over week changes for VIX and the active VIX futures contracts. All were higher with the exception of the December contract which finished the week unchanged. This just increased the ‘divot’ that we see each year with December volatility. Trading wise, someone used the Thursday dip in VIX to take a bullish position on volatility using July VIX Options. This trade took the form of buying the VIX Jul 17 Call for 1.10 and[...]

  • Market News | Jun 20, 2015, 8:10 AM

    The Week in Volatility Indexes and ETPs - 6/15 - 6/19

    The Week in Volatility Indexes and ETPs - 6/15 - 6/19

    The S&P 500 rose about 3/4% to finish the week over 2100. The term structure of volatility shifted slightly high last week, despite the gain in the S&P 500. That’s a little perplexing, until you consider the continued potential exit of Greece from the Eurozone which I hear commonly referred to as Grexit, despite some market watchers claiming the markets have grown tired of waiting for the potential Grexit to come to fruition. I have decided to try to coin a new term around this –[...]

  • Market News | VIX | Jun 19, 2015, 2:32 PM

    The Weekly Options News Roundup – 6/19/2015

    The Weekly Options News Roundup – 6/19/2015

    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. VIX Trading Going Global The interconnectedness of today’s global markets is underscored by the impact that macroeconomic incidents in one corner of the world have on another.  Volatility doesn’t sleep, and now, neither does trading VIX (and SPX) options. “CBOE Extends VIX and SPX Options Trading[...]

  • Market News | Jun 19, 2015, 12:45 PM

    BXR & RUT Indexes Hit All-Time Highs, As Interest in Small-Caps Heats Up

    BXR & RUT Indexes Hit All-Time Highs, As Interest in Small-Caps Heats Up

      Yesterday (June 18) was a key day for small-cap instruments, as shown by these facts – The Russell 2000 Index (RUT) (the key gauge of for U.S. small-cap stocks) hit an all-time daily closing high of 1284.68; The CBOE Russell 2000 BuyWrite Index (BXR) (the key gauge for use of an RUT index options buywrite strategy) hit an all-time daily closing high of on 217.68; Daily volume for options on the Russell 2000 (RUT) rose to 131,638 contracts, the highest level in recent weeks. RUT CHART THREE[...]

  • Market News | Jun 18, 2015, 4:30 PM

    Earnings Next Week - 6/22 - 6/26

    Earnings Next Week - 6/22 - 6/26

    Things continue to pick up in the earnings world with five companies reporting next week.  The numbers on the table represent three years of history with Max being the biggest gain, Min being the biggest drop, Abs Avg representing the average move (higher or lower), and Last Q being what the stock did in reaction to earnings three months ago.

  • Market News | VIX | Trader Talk | Futures | Strategy | Jun 18, 2015, 10:50 AM

    Block Trade Analysis - Short VIX Straddle + Long OTM Call

    Block Trade Analysis - Short VIX Straddle + Long OTM Call

    The June 2015 VIX futures and options met their demise on the open yesterday with settlement coming in at 14.67. One trader moved on to the following month with a trade structure that is unique in the option world, but pretty common in VIX world. Mid-morning on Wednesday a trader sold 22,800 VIX Jul 15 Calls for 1.73 and 22,800 VIX Jul 15 Puts at 1.18 who then completed the trade through purchasing 22,800 VIX Jul 22 Calls at 0.72 for a net credit of 2.19. The payoff at expiration appears below with[...]