Trader Talk Archives - CBOE Blogs

  • Market News | Trader Talk | May 21, 2015, 8:42 AM

    Earnings Next Week - 5/26 - 5/29

    Earnings Next Week - 5/26 - 5/29

    Next week is a short week, but there are ten companies reporting their earnings. 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 which is this case is PANW and WDAY which both have 2 1/2 years of history to work with.

  • Blogging Options | Trader Talk | May 21, 2015, 8:08 AM

    Blogging Options: CBOE Morning Update 5.21.15

    Blogging Options: CBOE Morning Update 5.21.15

    Lumber Liquidators with surprising CEO resignation has shares off 10% in early trade.  BLUE up 10% with possible new drug showing great results.  Existing Home Sales released after the opening.   Traders talking about hints that FED will raise rates sooner than later on "slack" in the economy not there any more.  Long weekend coming up.  Volatility as an asset class Salesforce.com (CRM) is up $3.94 to $74.10 in the premarket on better than expected Q1 results and[...]

  • VIX | Blogging Options | Trader Talk | May 20, 2015, 12:15 PM

    CBOE Mid-Day Update 5.20.15

    CBOE Mid-Day Update 5.20.15

    Volatility as an asset class Southwest (LUV) is recently down $3.12 to $37.78 on concerns of worsening competitive backdrop and lean competitors vowing to compete aggressively. May weekly call option implied volatility is at 48, June is at 34, July is at 33 compared to its 90-day average of 33. Delta (DAL) is recently down $2.35 to $43.84. May weekly call option implied volatility is at 43, June is at 34, July is at 33 compared to its 90-day average of 34. American Airlines (AAL) is recently down[...]

  • VIX | Blogging Options | Trader Talk | May 19, 2015, 12:06 PM

    CBOE Mid-Day Update 5.19.15

    CBOE Mid-Day Update 5.19.15

    Volatility as an asset class Dick's Sporting (DKS) is recently down $2.24 to $54.06 on inline Q1 results and strong Q2 guidance. June call option implied volatility is at 23, September is at 24; compared to its 90-day average of 26. TJX (TJX) is recently up $2.65 to $69.91 after the retailer reported inline into Q1 results and strong Q2 guidance. June call option implied volatility is at 18, July and October is at 17; compared to its 90-day average of 20. Take-Two (TTWO) is recently up $3.73 to $27.93[...]

  • VIX | Trader Talk | Futures | May 19, 2015, 9:15 AM

    May VIX Settlement Reminder 5.19.15

    May VIX Settlement Reminder 5.19.15

    Settlement Reminder: Today, Tuesday, May 19th is the last trading day for May in the following: VIX, RVX, VXN, GVZ, OVX, VXEEM, VXEWZ, and VXTYN futures* and options. These contracts settle tomorrow, Wednesday morning, May 20th. PLEASE NOTE:  VIX options with an expiration date of May 20th, 2015 will cease trading at 3:15 p.m. CDT today, Tuesday, May 19, 2015. These expiring options will NOT trade during the ETH session on Wednesday, May 20, 2015. * This is in contrast to VIX futures with[...]

  • VIX | Blogging Options | Trader Talk | May 19, 2015, 8:01 AM

    Blogging Options: CBOE Morning Update 5.19.15

    Blogging Options: CBOE Morning Update 5.19.15

    ECB talking of accelerating next round of QE has shorts in Europe scrambling.  April Housing Starts higher than estimates, rebounding after February and March disappointed.  SPY up fractionally.  Last day to trade May VIX, settles tomorrow morning.  Volatility as an asset class Home Depots (HD) is up $1.92 to $116.25 in the premarket on Q1 profit increasing 14.5%. May weekly call option implied volatility is at 34, June is at 21, August is at 20; compared to its 90-day average[...]

  • Trader Talk | Education | May 18, 2015, 2:00 PM

    So Much To Worry About - Really?

    So Much To Worry About - Really?

    Are there no shortage if things market players need to worry about?  It's amazing how long that 'wall of worry' has been up.  Yet, the market doesn't seem to be showing it, in fact we are seeing high complacency exist, which may not be a good thing over the long haul.  But I have to believe the mountain of concern in trading markets is way overblown, and the market shows it'll continue to overcome cautious behavior.  Ideal for a market to rally further than anyone expects. We[...]

  • VIX | Blogging Options | Trader Talk | May 18, 2015, 12:20 PM

    CBOE Mid-Day Update 5.18.15

    CBOE Mid-Day Update 5.18.15

    Volatility as an asset class S&P 500 ticks new life high The S&P 500 (SPY) index has ticked a marginal new life high at 2127.45. May weekly and June call option implied volatility is at 11; compared to its 90-day average of 13. Technology Sector SPDR (XLK) May weekly and June call option implied volatility is at 13; compared to its 90-day average of 15. Financial Sector SPDR (XLF) May weekly and June call option implied volatility is at 14; compared to its 90-day average of 14. Consumer Discretionary[...]

  • Blogging Options | Trader Talk | May 18, 2015, 8:03 AM

    Blogging Options: CBOE Morning Update 5.18.15

    Blogging Options: CBOE Morning Update 5.18.15

    Option expiration with good volume Friday. European markets weary of Greece drama, but it looks like something might be finalized in next 10 days.  US stock futures off fractionally.  Housing data today, tomorrow and Thursday will be watched.  10-year 2.18%.  Stories around about European banks being analyzed by credit agencies.   Long weekend coming up, details on trading schedule tomorrow.  Volatility as an asset class: ANN (ANN) is up $8.20 to $46.92 in the premarket[...]

  • Market News | VIX | Trader Talk | Futures | May 17, 2015, 9:39 AM

    The Week in Russell 2000 Trading - 5/11 - 5/14

    The Week in Russell 2000 Trading - 5/11 - 5/14

    Small cap stocks narrowed the performance gap with large cap stocks last week. The Russell 2000 (RUT – 1243.95) rose 0.73% which places 2015’s price performance at up 3.26% while the Russell 1000 (RUI – 1184.73) gained 0.37%. Large cap stock performance is still slightly better than year to date small cap performance as the Russell 1000 is up 3.53% for 2015. The chart below adjusts both indexes to start the year at 100 for an easy visual comparison. The CBOE Russell[...]

  • Market News | VIX | Trader Talk | Futures | May 16, 2015, 4:19 PM

    The Week in VIX - 5/11 - 5/15

    The Week in VIX - 5/11 - 5/15

    There was a fairly parallel shift lower in spot VIX and VIX futures pricing as there wasn’t much to get excited about last week. The May VIX future dropped a little more than the spot index as expiration is just around the corner. Despite the almost 5% drop in the May contract, the premium relative to spot VIX is about 1.30. The premium of the May futures contract relative to spot VIX got me looking into various puts that expire Wednesday morning. I copied down the[...]

  • Market News | VIX | Trader Talk | Futures | May 16, 2015, 2:31 PM

    The Week in Volatility Indexes and ETPs - 5/11 - 5/15

    The Week in Volatility Indexes and ETPs - 5/11 - 5/15

    There was a slight shift in the VXST – VIX – VXV – VXMT term structure last week. VXST and VIX were down, VXV was actually up slightly and VXMT dropped. Relative to history, VXV and VXMT are higher than you would expect with the S&P 500 making all-time highs. I’m convinced the market is braced for a difficult end to 2015. VXX and the other long oriented ETPs continue to grind lower as VIX stays at low levels and the futures maintain contango. SKEW stands out[...]

  • VIX | Blogging Options | Trader Talk | May 15, 2015, 3:00 PM

    The Weekly Options News Roundup – 5/15/2015

    The Weekly Options News Roundup – 5/15/2015

    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 101 “What is the essence of VIX? This may seem like an abstract, philosophical question, but I can assure you it is not. It is a practical one, and if you can understand what makes VIX unique, you will know why this index matters so much...” “The Essence of VIX: What You Really Need to Know”[...]

  • Market News | Blogging Options | Trader Talk | May 15, 2015, 7:56 AM

    Blogging Options: CBOE Morning Update 5.15.15

    Blogging Options: CBOE Morning Update 5.15.15

    Today is May options expiration.  Memorial Day early this year, it's next weekend.  We'll have the holiday trading schedule posted Monday. May Empire Manufacturing with a big miss, with a gain of 3.09 (1.19 in April), we saw estimates between 4.8 and 5.25.  Most of the components were positive, but barely.  Most overseas markets up fractionally playing catch-up to the US rally yesterday. Gold & Oil down, 10-year retreats to ~2,.2%.  Enjoy the weekend.  Volatility[...]

  • VIX | Blogging Options | Trader Talk | May 14, 2015, 12:16 PM

    CBOE Mid-Day Update 5.13.15

    CBOE Mid-Day Update 5.13.15

    Volatility as an asset class Kohl's (KSS) is recently is down $8.78 to $65.70 on weak February Same Store Sales. June call option implied volatility is at 25, July is at 24; compared to its 90-day average of 24. Vipshop (VIPS) is recently down $1.30 to $25.73 after reports Q1 adjusted EPS 13c, consensus 10c and inline revenue of $1.39B. May weekly call option implied volatility is at 48, June is at 47, August is at 51; compared to its 90-day average of 49. Jack in the Box (JACK) is recently down[...]