VCAC Archives - Cboe Blogs

  • Strategy | Trade Ideas | Oct 24, 2016, 9:10 AM

    Admiral SPO Puts his Mark on Microsoft

    Admiral SPO Puts his Mark on Microsoft

    Maury, Maury, Maury! Admiral SPO Puts his Mark on Microsoft. Knowing Maury’s thirst for shekels and his motto of "the best things in life are FREE" the Admiral launched a timely pre-earnings trade, a call time back spread. Maury, known for his Pavlovian behavior jumped in!  On Thursday, October 20th, the day Microsoft earnings were scheduled to come out after the bell, one day prior to OCT options expiration Admiral sent out the mother of all Maury trades at 2:56 PM CT: Sell[...]

  • Technical Analysis & Charts | VIX | Strategy | Oct 17, 2016, 9:43 AM

    BigTrends.com Weekly Market Outlook - Damage Control

    BigTrends.com Weekly Market Outlook - Damage Control

    The bulls tried and tried, but it was a lost cause last week. Stocks never recovered from last Tuesday's stumble, and the bulls squandered their best chance to get back on a bullish track on Friday. All the major indices closed below key technical levels on Friday when the bullish effort that day petered out. Near-term the market still isn't completely past the point of no return, but it's close, and it's pointed in that direction.  However, while the tide may be pointed in a bearish direction,[...]

  • Strategy | Oct 17, 2016, 9:05 AM

    Admiral SPO Delivers a Perfect Maury Trade

    Admiral SPO Delivers a Perfect Maury Trade

    In August, Admiral SPO delivered a great BIDU trade.  Most HA Options Members were very grateful for such a brilliant gift from our fearless leader. As usual, Maury was exception to the norm, whose greed was only fueled by the talent at his disposal. He immediately began nagging for another over the top winner. Since Maury is not to be ignored, Admiral SPO obliged with another trade. On September 8, Admiral SPO sent out a QCOM Straddle: Buy the OCT 21 Expiry 62.50 Calls and 62.50 Puts.  QCOM[...]

  • Strategy | Cboe Benchmark Indexes | Oct 3, 2016, 2:43 PM

    News Story by Pensions & Investments Highlights Put-write Strategy, PUT Index and New Wilshire Paper

    News Story by Pensions & Investments Highlights Put-write Strategy, PUT Index and New Wilshire Paper

    An October 3 news story - “Funds go exotic with put-write options to stem volatility” - in Pensions & Investments noted that put-write options strategies “are finding their way into more pension fund allocations to protect against volatility and, in some cases, take the place of fixed income as an income provider.”  The news story noted that a new paper by Wilshire -- Three Decades of Options-Based Benchmark Indices with Premium Selling or Buying: A Performance Analysis[...]

  • BigTrends.com Weekly Market Outlook - Mildly Bullish Undertow

    BigTrends.com Weekly Market Outlook - Mildly Bullish Undertow

    Stocks managed to log a gain last week, but it was a "just barely" situation. The S&P 500 (SPX) (SPY) ended only 0.1% higher than it ended the prior week, and still closed below all of its key technical resistance levels. The bulls are going to have to do better than this to achieve escape velocity. Still, the undertow remains technically bullish, and a break above the ceilings here is within easy reach. We'll look at the hurdles and weigh the odds after a quick run-down of last[...]

  • Market News | Education | Strategy | Election & VIX | Sep 30, 2016, 2:28 PM

    More SPXW and VIX “Election Spread” Expiration Dates for Targeted Strategies

    More SPXW and VIX “Election Spread” Expiration Dates for Targeted Strategies

    As the November 8 date for the U.S. Presidential election approaches, I have heard quite a bit of interest from investors in the use of SPX and VIX options and VIX futures with various expirations over the next six weeks.  Added expiration dates provide investors with the opportunity to implement more targeted buying, selling, hedging and spreading strategies. As shown in the two tables below, a September 28 CBOE Circular, and on cboe.com, by the end of next week there will be SPXW option expirations[...]

  • Market News | Trader Talk | Strategy | Sep 19, 2016, 10:37 AM

    Earnings This Week - 9/19 - 9/23

    Earnings This Week - 9/19 - 9/23

    As always the data below is based on the last three years of earnings results unless the ticker is in italics.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.

  • Market News | Technical Analysis & Charts | VIX | Strategy | Sep 19, 2016, 9:35 AM

    BigTrends.com Weekly Market Outlook - Fed Wednesday Looms

    BigTrends.com Weekly Market Outlook - Fed Wednesday Looms

    As much as the bulls tried last week, they could never get the market back above a key hurdle. The threat of a September rate hike just continued to circulate, and never gave the buyers a chance to get traction. Then again, the bears didn't make any progress either. They had several opportunities to deal a short-term death blow to the market, but could never get the job done. With the a key rate hike decision looming on Wednesday, odds are good traders aren't going to make any major push before then.[...]

  • Technical Analysis & Charts | VIX | Futures | Strategy | Sep 6, 2016, 9:43 AM

    BigTrends.com Weekly Market Outlook - Two Month Range Continues

    BigTrends.com Weekly Market Outlook - Two Month Range Continues

    Despite a couple of scares, stocks ended last week intact, and even up just a bit thanks to Friday's gain. On the other hand, last week's action still left the S&P 500 (SPX) (SPY) along with the other indices overvalued and overbought. Whether or not that matters remains to be seen, though it's interesting that the bears had more than ample opportunity to push the market over the cliff -- but they just never did it. All the same, the first full week of the worst month of the year for stocks[...]

  • Market News | Trader Talk | Strategy | Trade Ideas | Aug 20, 2016, 2:00 PM

    Weekend Review - Volatility Indexes and ETPs - 8/15 - 8/19

    Weekend Review - Volatility Indexes and ETPs - 8/15 - 8/19

    For the second week in a row the S&P 500 Index related volatility indexes hardly budged. Three out of four were lower with the longest dated, VXMT, up slightly on the week. We’ve ranted and raved in various forums about how VVIX has been holding up despite a lower VIX. It was kind of like the last holdout for higher equity market related volatility until this past week when it took a 12% dive.  This puts VVIX closer to the lower end of the historical range. I guess[...]

  • Market News | Trader Talk | Strategy | Trade Ideas | Aug 20, 2016, 10:09 AM

    Weekend Review - Russell 2000 Options and Volatility - 8/15 - 8/19

    Weekend Review - Russell 2000 Options and Volatility - 8/15 - 8/19

    Sometimes I over personify the financial markets and when I saw that the Russell 2000 (RUT) easily extended the lead over the Russell 1000 (RUI) this week an Olympic themed situation popped into my head.  I saw the Russell 2000 as Usain Bolt giving a thumbs up as it easily moved farther ahead of the Russell 1000.  For the week RUT gained 0.60% while RUI was actually down by 0.01% which places the 2016 lead for RUT at just over 2% (8.88% vs. 6.86%). When VIX is low the ratio[...]

  • Market News | Futures | Strategy | Aug 17, 2016, 1:14 PM

    Successful Launch for New SPX Monday-Expiring Weeklys Options

    Successful Launch for New SPX Monday-Expiring Weeklys Options

    On August 15 CBOE launched trading of the new S&P 500® Index (SPX) Monday-expiring Weeklys options. Daily trading volume for the new SPX Monday Weeklys in the first two days was 4,334 on August 15, and 10,829 on August 16. Institutional investors have told me that the SPX Monday Weeklys could have potential to be very helpful to them in managing their over-the-weekend risk. SPX Weeklys are one of CBOE’s fastest-growing products, with volume in 2015 setting a 10th consecutive annual[...]

  • VIX | Futures | Strategy | Aug 15, 2016, 10:12 AM

    BigTrends.com Weekly Market Outlook - On The Fence Amid Presidential Cycle

    BigTrends.com Weekly Market Outlook - On The Fence Amid Presidential Cycle

    Though the market finished on a bullish foot two Friday's ago, that tone didn't help stocks one iota last week. When all was said and done, the S&P 500 (SPX) (SPY) pretty much ended last week where it started it, and still on the fence as it's been for the better part of the past several weeks. Just for the record though, the uptrend is still the bulls' to lose. The bears just haven't been able to land any real damaging blows. We'll examine the market's odds and undertow below, after running[...]

  • Strategy | Aug 11, 2016, 9:59 AM

    How Admiral Beat Maury at His Own Game

    How Admiral Beat Maury at His Own Game

    Maury felt pretty smug about taking the Admiral’s FB trade, however, he was not prepared for BIDU. The Admiral had his mojo working as he went stalking an uber Maury trade, and it ended up a doozie! On 7/28, BIDU was scheduled to report earnings after the close. The Admiral sent out a Bearish 3x9x6 AUG Put Vertical Ratio Spread: +160/-145/+140 strikes, paying $2.35 x 3 While EPS was slightly above expectations, BIDU opened down and the Admiral sent an order for a partial exit #732A: Sell[...]

  • Market News | Strategy | Aug 8, 2016, 10:15 AM

    Noise Levels Rising - Time to Turn it Down

    Noise Levels Rising - Time to Turn it Down

    The pitch level of noise surrounding the markets is starting to elevate, and wouldn't you know it - right near the all time highs.  Right on cue!  As we saw markets take out resistance on Friday following the strong jobs report, we continue to hear the drumbeat from the bearish side, that this most unbelievable market rally has to end soon.  Of course, no time estimate on that prediction - like the old economist's saw, 'give em a number or a date, but never both'.  Especially[...]