Trader Talk Archives - CBOE Blogs

  • 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[...]

  • Blogging Options | Trader Talk | May 14, 2015, 7:59 AM

    Blogging Options: CBOE Morning Update 5.14.15

    Blogging Options: CBOE Morning Update 5.14.15

    April PPI fell 0.4% (+0.1% expected), Core 0ff 0.2%.  Orders for machinery and oil prices major contributors to drop.  Weekly Jobless Claims come in less than anticipated.  Slow news day so far.  May option expiration tomorrow.  Traders talking about $VXTYN lately. Volatility as an asset class: Cisco (CSCO) is down $0.30 to $29.10 in the premarket after reporting Q3 EPS 54c, compared consensus of 53c.  May call option implied volatility is at 69, June is at 25, July[...]

  • Blogging Options | Trader Talk | May 13, 2015, 7:45 AM

    Blogging Options: CBOE Morning Update 5.13.15

    Blogging Options: CBOE Morning Update 5.13.15

    April Retail Sales unchanged (+0.2% to +0.3% expected). X-Auto's +0.1%, Control Group flat.  march revised higher by two ticks, but Sales on weak side.  Europe calm this morning, US futures to positive side.  10-year yield drops near 2.2%.  Du Pont (DD) appears to have won proxy fight, is off $2 before opening.  Volatility as an asset class Pall Corp (PLL) is up $5.78 to $124.40 in the premarket on acquiring Danaher (DHR) for $13.8B including assumed debt. May call option[...]

  • Technical Analysis & Charts | Trader Talk | Futures | May 12, 2015, 1:15 PM

    Market Tells Are More Useful Than Predictions or Comments

    Market Tells Are More Useful Than Predictions or Comments

    There was a slew of talk and predictions over the last few days that were to serve warning over equity market players, but what transpired as another up week with another very strong day on a Friday, the second consecutive big gain to end a week.  On Thursday we heard some 'off the cuff' comments from Fed Chair Janet Yellen, her thought that equity valuations were 'quite high', yet we know that condition is rather arbitrary.  Maybe she commented with a 'wink' to the markets.  The valuation[...]

  • VIX | Trader Talk | Futures | May 12, 2015, 9:22 AM

    More Color on the Big $VIX Trade

    More Color on the Big $VIX Trade

    I get to CBOE each morning about 7:15 and by 7:16 I was running around the floor trying to find out a little more about the VIX roll from yesterday. First, I’ll start at the beginning. It appears this all began back on April 10th when the trade that got rolled forward yesterday was opened. Back in April about 180,000 VIX Jun 17 Calls were purchased for 1.74 and about 360,000 VIX Jun 23 Calls were sold at 0.82. I keep using ‘about’ as a hedge clause because the actual trade[...]

  • VIX | Blogging Options | Trader Talk | May 12, 2015, 7:59 AM

    Blogging Options: CBOE Morning Update 5.12.15

    Blogging Options: CBOE Morning Update 5.12.15

    The weakest Japanese bond auction in over six years, Greece staying solvent by delivering all cash reserves to the IMF, and profit taking are weighing heavily on US stock futures this morning.  European shares off ~1.5%, 10-year at 2.3%. Volatility as an asset class AOL (AOL) is up $7.75 to $50.34 in the premarket on Verizon (VZ) acquiring for $50 per share or $4.4B. May call option implied volatility is at 37, June is at 32; compared to its 90-day average of 30. IShares Barclay 20+ YR Treasury[...]

  • Market News | Technical Analysis & Charts | VIX | Trader Talk | May 11, 2015, 4:00 PM

    Will The Nasdaq & Russell 2k Drag The SPX Back Down? - Weekly Market Outlook

    Will The Nasdaq & Russell 2k Drag The SPX Back Down? - Weekly Market Outlook

    You have to give credit to the bulls - they're not going down without a fight. In fact, last week's market rebound right from the brink of disaster was another impressive comeback. On the other hand, as impressive as Friday's bounce was, stocks still aren't over the big hurdle that's been holding them back since February.  Will this be the time we break through past the recent choppiness and trend higher? We'll draw that line in the sand after recapping last week's big economic news[...]

  • VIX | Blogging Options | Trader Talk | May 11, 2015, 12:06 PM

    CBOE Mid-Day Update 5.11.15

    CBOE Mid-Day Update 5.11.15

    Volatility as an asset class Apple (AAPL) is recently down $1.10 to $126.48. May weekly call option implied volatility is at 25, June is at 23; compared to its 26-week average of 26. VIX methodology for Apple (VXAPL) up 2.5% to 25.45. cboe.com/VXAPL Etsy (ETSY) is recently down $2.03 to $20.60 after the online marketplace was downgraded to Underperform from Neutral at Wedbush. May call option implied volatility is at 74, June is at 64, September is at 54; compared to its 10-day average of 60. Monster[...]

  • VIX | Blogging Options | Trader Talk | May 11, 2015, 7:55 AM

    Blogging Options: CBOE Morning Update 5.11.15

    Blogging Options: CBOE Morning Update 5.11.15

    US shares flat as we approach the opening of trading. Noble Energy offers ~$26.70 in stock for Rose (up $6 to $25.30, 52-week high above $55).  Eurogroup meets today on Greece debt problem, Greece signaling pessimism.  China cut rates again, Chinese stocks rally, picking up half of last weeks losses.  US and overseas economic data doesn't start until Wednesday. VIX Futures quiet in early session, after trading ~228K Friday. Volatility as an asset class: iShares FTSE Xinhua China 25[...]

  • 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 | VIX | Trader Talk | Strategy | May 10, 2015, 9:36 AM

    The Week in Volatility Indexes and ETPs - 5/4 - 5/8

    The Week in Volatility Indexes and ETPs - 5/4 - 5/8

    Despite a dip midweek, the S&P 500 recovered to put up a winning week on the heels of the non-farm payrolls report. Friday’s 28 point rally salvaged weekly performance, but this was not enough to push VIX to a week over week loss.  Since January 1990 there have been 178 weeks where the S&P 500 and VIX were both higher. I ran some quick numbers and of those 178 weeks, the S&P 500 was higher the 102 times and lower the other 76 weeks after both moved higher in sync. I was a little[...]

  • VIX | Blogging Options | Trader Talk | May 8, 2015, 11:56 AM

    CBOE Mid-Day Update 5.8.15

    CBOE Mid-Day Update 5.8.15

    Volatility as an asset class Monster Beverage (MNST) is recently down $12.23 to $131.20 on less than expected Q1 results and guidance. May call option implied volatility is at 29, June is at 31, September is at 32; compared to its 52-week average of 39. CBS (CBS) is recently down $1.31 to $59.91 after reporting Q1 EPS 78c, consensus 75c.  May call option implied volatility is at 24, June is at 27, September is at 26; compared to its 26-week average of 28. IShares Barclay 20+ YR Treasury ETF[...]