Trade Ideas Archives - CBOE Blogs

  • Market News | Trader Talk | Trade Ideas | Aug 25, 2016, 7:51 PM

    Earnings Next Week - 8/29 - 9/2

    Earnings Next Week - 8/29 - 9/2

    Next week we have a small list, but it's an interesting one as several of the companies reporting have recently had a big move or just regularly experience a lot of volatility around earnings.  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 | Trader Talk | Trade Ideas | Aug 24, 2016, 11:15 AM

    The Buffett Put Trade - 2Q2016 Update

    The Buffett Put Trade - 2Q2016 Update

    Each quarter Berkshire Hathaway, like all investment firms, files their holdings with the SEC.  Most people scramble to see what stocks Warren Buffett has been adding to his portfolio.  I usually scramble as well, but I’m looking for something hardly discussed in the dozens of pages that make up Berkshire Hathaway’s 10-Q.  I go looking for an update on what I commonly call The Buffett Put Trade.  Back in April I wrote an explanation of what this trade is all about. [...]

  • Market News | VIX | Trader Talk | Trade Ideas | Aug 20, 2016, 7:42 PM

    Weekend Review - VIX Futures and Options - 8/15 - 8/19

    Weekend Review - VIX Futures and Options - 8/15 - 8/19

    VIX dropped a little as the equity market did a whole lot of nothing last week.  We retired the August contract on the open Wednesday morning and September took over as the front month.  With time to go to expiration (this is actually a five-week cycle) everyone seemed to notice the steep contango again.  What is interesting below is the behavior of the curve beyond October.  November and beyond gained a little ground despite all the contracts moving up in the pecking order of[...]

  • 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 | Trader Talk | Trade Ideas | Aug 18, 2016, 1:27 PM

    Earnings Next Week - Aug 22 - Aug 26

    Earnings Next Week - Aug 22 - Aug 26

    There are just enough names to make things interesting next week.  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 | Trader Talk | Trade Ideas | Aug 13, 2016, 7:00 AM

    Weekend Review - Russell 2000 Options and Volatility - 8/8 - 8/12

    Weekend Review - Russell 2000 Options and Volatility - 8/8 - 8/12

    The race between large cap and small cap stocks came down to a photo finish last week as the Russell 1000 (RUI) was up 0.06% while the Russell 2000 (RUT) ended up losing 0.13%.  This slight win for RUI didn’t do much as far as the year to date performance comparison goes as RUT is still ahead of RUI by 1.4% as RUT is up 8.27% in 2016 while RUI is up only 6.87%. The CBOE Russell 2000 Volatility Index (RVX) was lower last week while VIX gained a little.  The result when[...]

  • Market News | Trader Talk | Trade Ideas | Aug 11, 2016, 5:47 PM

    Earnings Next Week - 8/15 - 8/19

    Earnings Next Week - 8/15 - 8/19

    Next week we start to reach the end of a pretty uneventful earnings season.  The week is dominated by retailers which is always a signal that earnings season is coming to a close.  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 | Trader Talk | Trade Ideas | Aug 6, 2016, 10:06 AM

    Weekend Review - Russell 2000 Options and Volatility - 8/1 - 8/5

    Weekend Review - Russell 2000 Options and Volatility - 8/1 - 8/5

    Last night we were (somewhat) entertained by the opening ceremonies for the Summer Olympics and for the next 17 days will be subjected to story enhanced competitions.  I have been monitoring a competitive struggle already this year.  The battle between small cap and large cap stocks.  It has been like a marathon with the Russell 2000 (RUT) falling way back, but pacing itself relative to the Russell 1000 (RUI).  RUI had quite a lead after the first six weeks or so of 2016. [...]

  • Maury Meets Mark

    Maury Meets Mark

    In the lively chat rooms of Hamzei Analytics, Maury tales are abound.  Saying Maury (a fictitious character) is frugal, is an understatement.  His motto is “What’s for free, is for me”.  At the very least, he hates wholesale prices and want to buy below cost, thus negotiates for the best bargain. He has set the standard for getting the most out of our options trades. We have come to appreciate the “Maury” trades in the HFT Options Trading Chatroom. Old[...]

  • VIX | Trader Talk | Education | Trade Ideas | Aug 3, 2016, 11:25 AM

    CBOE Options Institute Class to Focus on VIX and Volatility

    CBOE Options Institute Class to Focus on VIX and Volatility

    The CBOE Options Institute is hosting the first in a series of classes that will focus on different aspects of option and volatility trading. The first class, appropriately named Focus on VIX and Volatility Products, will be held on Friday August 19th at CBOE. For those unable to make it to Chicago the class is also available online. Specific topics to be covered include VIX and the behavior of volatility indexes VIX futures and options price behavior Trading VIX related Exchange Traded Products Long,[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jul 31, 2016, 7:56 PM

    Weekend Review - Volatility Indexes and ETPs - 7/25 - 7/29

    Weekend Review - Volatility Indexes and ETPs - 7/25 - 7/29

    It was as quiet a week as I can remember with respect to the S&P 500 focused volatility indexes.  An quieter and the lines below would look like a single line. The long ETPs really suffered last week as we entered the week in very steep contango when comparing VIX with the August and September futures.  Of course what is bad for VXX is good for XIV and SVXY which both rose over 9% and up over 30% on the year.  VVIX actually rose a tad last week as well as VIX option[...]

  • Market News | Trader Talk | Trade Ideas | Jul 28, 2016, 7:26 PM

    Earnings Next Week - 8/1 - 8/5

    Earnings Next Week - 8/1 - 8/5

    Next week is another huge week for earnings.  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 | VIX | Trader Talk | Trade Ideas | Jul 24, 2016, 6:12 PM

    Weekend Review - Volatility Indexes and ETPs - 7/18/2016 - 7/22/2016

    Weekend Review - Volatility Indexes and ETPs - 7/18/2016 - 7/22/2016

    VIX was the biggest mover among the four S&P 500 related volatility indexes this past week.  VIX dropped more than 5% while VXST lost 0.39% and VXV was down 1.19%.  Longer dated volatility actually rose last week with VXMT gaining 0.28%.  The curve remains very steep which I’m taking as uncertainty abounding with respect to the balance of 2016, especial the fourth quarter of 2016. Most the data points on the table below are as one would expect after a relatively[...]

  • Market News | Trader Talk | Trade Ideas | Jul 24, 2016, 2:01 PM

    Weekend Review - Russell 2000 Index and Options - 7/18/2016 - 7/22/2016

    Weekend Review - Russell 2000 Index and Options - 7/18/2016 - 7/22/2016

    Last week the performance for the Russell 1000 (RUI) and Russell 2000 (RUT) was as close as I’ve seen it since I’ve been doing these blogs.  RUI gained 0.67% and RUT was higher by 0.65% for what we will say is within the margin of error (I’m stealing from the political polls).  For the year RUT is maintaining a small lead on RUI up 6.78% versus 6.40%.  This is the second week in a row with RUT in the lead which is pretty impressive considering back in February RUT[...]