Trade Ideas Archives - Cboe Blogs

  • The Week for Russell 2000 Trading - 5/4 - 5/8

    The Week for Russell 2000 Trading - 5/4 - 5/8

    Small cap stocks played a little catch up last week with the Russell 2000 rising 0.55% while the Russell 1000 gained 0.35%.   Like all broad based market indexes in the US last, the positive performance came from the market’s reaction to Friday’s employment report. Large cap stocks actually ruled the day on Friday with the benchmark Russell 1000 gaining 1.2% while the Russell 2000 rose by about 0.75%. For a perspective on the relative performance of large and small cap stocks[...]

  • Market News | Trader Talk | Futures | Trade Ideas | May 10, 2015, 12:00 PM

    The Week in VIX - 5/4 - 5/8

    The Week in VIX - 5/4 - 5/8

    VIX was slightly higher and the futures were mostly lower with a couple of exceptions last week. There was a bit of excitement in the middle of the week so I included an extra piece to the graph below and decided to show Wednesday’s highs for VIX and the futures market.  If I had not done that it would be pretty difficult to see there are two different lines showing VIX closing levels on the 1st and the 8th. We all know that Friday was the employment number with the stock market rallying[...]

  • Market News | Trader Talk | Strategy | Trade Ideas | May 8, 2015, 8:45 AM

    Earnings Next Week - 5/11 - 5/14

    Earnings Next Week - 5/11 - 5/14

    Things start to lighten up a bit as far as earnings season goes next week, but there are still 19 stocks with short dated options available for trading the report next week. As always Max is the biggest gain in response to earnings, Min is the biggest drop, Abs Average is the average magnitude of the moves, and Last Q is what the stock did last quarter in response to earnings.  Finally, all numbers represent three years unless italicized.

  • Market News | Trader Talk | Trade Ideas | May 4, 2015, 2:00 PM

    Earnings This Week (Part 2) - 5/6 - 5/8

    Earnings This Week (Part 2) - 5/6 - 5/8

    Time caught up with me and I was only able to knock out Monday and Tuesday earnings numbers for the week of May 4th to May 8th before this week.  As promised I knocked out the  balance of the week today. As always Max is the biggest gain in response to earnings, Min is the biggest drop, Abs Average is the average magnitude of the moves, and Last Q is what the stock did last quarter in response to earnings.  Finally, all numbers represent three years unless italicized.

  • Trader Talk | Trade Ideas | Apr 30, 2015, 11:32 AM

    Earnings Next Week (Part 1) - 5/4 - 5/5

    Earnings Next Week (Part 1) - 5/4 - 5/5

    Time caught up with me and I was only able to knock out Monday and Tuesday earnings numbers for the week of May 4th to May 8th.  I'll get the balance of the week done when I return from finals week in my PhD program. As always Max is the biggest gain in response to earnings, Min is the biggest drop, Abs Average is the average magnitude of the moves, and Last Q is what the stock did last quarter in response to earnings.  Finally, all numbers represent three years unless italicized.   [...]

  • Market News | Trader Talk | Trade Ideas | Apr 18, 2015, 10:55 AM

    Earnings Next Week - 4/20 - 4/24

    Earnings Next Week - 4/20 - 4/24

    The calendar is heavy next week and I do apologize for not posting this a little earlier.  Luckily the majority of companies reporting next week release their numbers on Wednesday or Thursday so there are plenty of opportunities to place a short term option trade based on your outlook for an earnings reaction. As always this list represents three years of earnings reaction history, except when italicized, which indicates there is less than three years of data to work with.  Max is the biggest[...]

  • Trader Talk | Strategy | Trade Ideas | Mar 27, 2015, 10:40 AM

    How to Buy TSLA Almost 8% Lower than Current Price

    How to Buy TSLA Almost 8% Lower than Current Price

    With TSLA currently around $190, how can I buy the stock anywhere near $175? The answer could be the sale of a cash secured put. With the stock at $191 the April 180 put is trading at around $3.00.  I will sell 1 April 180 put at $3.  If the stock finishes under the strike price of 180 at April Expiration (April 17th), I would be obligated to buy the stock at $177 ( strike price minus the premium received).  If the stock doesn’t fall below $180 at April Expiration, I collect[...]

  • Education | Futures | Trade Ideas | Mar 7, 2015, 3:34 PM

    Cross-Asset Volatility Discussion at CBOE Risk Management Conference

    Cross-Asset Volatility Discussion at CBOE Risk Management Conference

    One of the final presentations given at the 31st Annual CBOE Risk Management Conference this year was an in depth discussion of volatility across asset classes.   Brandon Bates, Portfolio Manager at BlackRock and Benjamin Bowler, Co-Head of Global Equity Derivatives Research at Bank of America Merrill Lynch co-presented the session titled Leveraging Cross-Asset Volatility Dynamics in Forecasting and Trading. With the emergence of volatility as an asset class it appears that volatility across[...]

  • Trader Talk | Trade Ideas | Feb 25, 2015, 2:22 PM

    Earnings Next Week - 3/2 - 3/6

    Earnings Next Week - 3/2 - 3/6

    Just completed and presented for your information - earnings history for the stock with Weeklys available reporting next week.  Histories represent 3 years or 12 quarters unless italicized which indicates less than 3 years of data is available -  

  • Education | Strategy | Trade Ideas | Feb 24, 2015, 9:30 AM

    Options Trading Strategies: Lessen Volatility on your Portfolio

    Options Trading Strategies:  Lessen Volatility on your Portfolio

    Random price movements leave us with very little edge when it comes to reading the charts and technical's.  Nevermind fundamental analysis, which is simply impossible to explain a how stock can move violently after a news event.  The market is simply designed around accumulation and distribution, seen very clearly on a price and volume chart.  Yet, when these buyers and sellers are pulled in each direction by the market there is an uneasy feeling about participating. The erratic behavior[...]

  • Market News | Trader Talk | Futures | Trade Ideas | Feb 7, 2015, 12:25 PM

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

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

    With a 17% drop in VIX, the week ended not just in contango, but pretty steep contango. Especially when looking at February versus the spot. Also taking into account there is a week and a half remaining until February settlement. February at almost a 2 point premium to VIX in a pretty good indication that traders are still worried about the health of the overall stock market and the possibility that February settlement comes in higher than current levels. I’m going to deviate a[...]

  • Market News | Trader Talk | Trade Ideas | Feb 5, 2015, 11:09 AM

    Earnings Histories - Week of 2/9 - 2/13

    Earnings Histories - Week of 2/9 - 2/13

    I've called this blog Next Week in Weeklys, but in reality it has turned into a resource people are using when considering trading around earnings.  Therefore, we have a new title. The table below shows three years of earnings history for stocks that have short dated options (Weeklys) available for trading.  In cases where there is not three years of data available I italicize the line.  

  • VIX | Trader Talk | Education | Trade Ideas | Jan 29, 2015, 10:00 AM

    Day Two Agenda: CBOE Risk Management Conference March 5th

    Day Two Agenda: CBOE Risk Management Conference March 5th

    As you know, CBOE’s 31st Annual Risk Management Conference (RMC) will be held March 4 – 6, 2015 at the Park Hyatt Aviara in Carlsbad, California, 25 miles North of San Diego.  RMC is the premiere financial industry conference designed for institutional users of equity derivatives and volatility products. RMC's agenda covers a variety of concepts, including how to employ  hedging techniques for portfolios, utilizizing equity derivatives, and modeling and trading volatility. Topics[...]

  • Market News | Trader Talk | Futures | Trade Ideas | Jan 25, 2015, 9:39 AM

    The Week in VIX - 1/20 - 1/23

    The Week in VIX - 1/20 - 1/23

    The S&P 500 was strong and VIX was weak last week. We returned to contango in VIX world as the S&P 500 was up 1.6% for the week. This despite having a tough Friday. Note the February future is at a pretty nice premium to the spot index. This may be a function of the people of Greece going to the polls this weekend, a two day Fed meeting, and a slew of economic numbers coming out next week. Near the top of my weekend ‘must read’ list is Steven Sears’ Striking Price column[...]

  • Trader Talk | Education | Strategy | Trade Ideas | Jan 23, 2015, 2:38 PM

    AAPL Earnings Play

    AAPL Earnings Play

    I am looking at an Iron Condor as a potential trade to play AAPL earnings next week. Trade: Sell 1 January 120 Call and Buy 1 January 123 Call. Sell 1 January 104 Put and Buy 1 January 101 Put. This is the January 30 Expiration. The credit I am looking for is around $60 per every one contract Iron Condor I do (excludes commission). Analysis: The credit for this Iron Condor is $60 and the Risk or Margin is $240 per every one contract I do. The yield is about 25% excluding commissions if I collect[...]