Trader Talk Archives - Cboe Blogs

  • Trader Talk | Education | Strategy | May 6, 2015, 2:50 PM

    How to Find Stocks for Iron Condors?

    How to Find Stocks for Iron Condors?

    I am often asked how I find stock in which to enter into the Iron Condor strategy.  Not every strategy works with every stock in every kind of market, but I have a set of guidelines or criteria I use when looking for those stocks. #1  use stocks you would buy 100 shares of in your retirement account #2  use very liquid stocks near $100 or higher:   Examples would be AAPL, NFLX, AMZN, GOOGL, PNRA, XOM, DIS, IBM, TSLA, LNKD, PCLN, etc. #3  If I did 4 stock Iron Condors[...]

  • Trader Talk | Education | Strategy | May 6, 2015, 1:40 PM

    Why I Will NOT Buy or Sell that First Big Move

    Why I Will NOT Buy or Sell that First Big Move

    In the game of trading there is always a rush to be the first one in or out, state it in real time and then wait to take a victory lap.  It's great fun and an ego stroke to be able to 'call that shot', whether it's a bottom or top.   Yet, these decisions are often impulsive and without much thought.  When a stock plunges for whatever reason it may seem appropriate to stick your hand in and take a slice or even a big chunk, without ever understanding the technical damage that could[...]

  • VIX | Blogging Options | Trader Talk | May 6, 2015, 12:18 PM

    CBOE Mid-Day Update 5.6.15

    CBOE Mid-Day Update 5.6.15

    Volatility as an asset class Fossil (FOSL) is recently down $8.40 to $78.10 on less than expected guidance. May call option implied volatility is at 33, June is at 23; compared to its 52-week average of 51. Weight Watchers (WTW) is off $0.87 to $7.32 after reporting a less than expected Q1 revenue of $322.1M, compared to consensus $324.36M.  May call option implied volatility is at 107, June is at 92, July is at 81, October is at 96; compared to its 26-week average of 43. Proshares UltraShort[...]

  • VIX | Blogging Options | Trader Talk | May 5, 2015, 11:51 AM

    CBOE Mid-Day Update 5.5.15

    CBOE Mid-Day Update 5.5.15

    Volatility as an asset class Disney (DIS) is recently up $1.16 to $112.19 after reporting better than expected Q2 adjusted EPS $1.23, compared to consensus $1.11. May call option implied volatility is at 19, June is at 18, January is at 20; compared to its 52-week average of 23. Estee Lauder (EL) is recently up $4.95 to $88.30 on Q3 adjusted EPS 72c, compared to consensus 51c. May call option implied volatility is at 19, June 18, July is at 19; compared to its 26-week average of 21. Proshares UltraShort[...]

  • Market News | VIX | Blogging Options | Trader Talk | May 5, 2015, 7:58 AM

    Blogging Options: CBOE Morning Update 5.5.15

    Blogging Options: CBOE Morning Update 5.5.15

    Disney beat on the top & bottom line, pushing stock futures to a slight gain.   But the March Trade deficit with the worst number in 6 1/2 years, dragged futures lower.  Economists that blamed the West Coast port strike on the preliminary Q1 GDP number, now have the surge in goods being processed to blame for the deficit.  Revised GDP will be an interesting number to watch.  Earnings other than DIS a mixed bag this morning.  Shanghai off 4% overnight, Australia is[...]

  • 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.

  • VIX | Blogging Options | Trader Talk | May 4, 2015, 12:38 PM

    CBOE Mid-Day Update 5.4.15

    CBOE Mid-Day Update 5.4.15

    Volatility as an asset class Cablevision (CVC) is recently up 5c to $20.33 after reporting Q1 EPS 20c, compared to consensus 17c.  May call option implied volatility is at 40, June is at 29, September is at 32; compared to its 26-week average of 27. MGM Resorts (MGM) is recently down 40c to $21 after reporting better than expected Q1 EPS 33c, compared to consensus 14c. May call option implied volatility is at 39, June is at 36, September is at 34; compared to its 26-week average of 36. CBOE[...]

  • Technical Analysis & Charts | VIX | Trader Talk | Futures | May 4, 2015, 11:15 AM

    Still In No Man's Land - Weekly Market Outlook 5.4.15

    Still In No Man's Land - Weekly Market Outlook 5.4.15

    Despite the strong bullish effort on Friday, stock's booked a loss for the past week. On the other hand, the market finished the week on a bullish foot, which broadly suggests we'll hit the ground running in an upward direction this week. (It doesn't hurt the bullish case that the longer-term trend is still technically intact.)  We'll weigh the odds below, after looking at last week's big economic news and previewing some of this week's economic data. Economic Data While we got a large number[...]

  • Market News | Trader Talk | Strategy | May 3, 2015, 12:00 PM

    The Week in the Russell 2000 - 4/27 - 5/2

    The Week in the Russell 2000 - 4/27 - 5/2

    For most of 2015 small cap stocks, as measured by the Russell 2000, set the pace outperforming the large cap dominated Russell 1000. Last week the tables turned quickly as the Russell 2000 dropped over 3% while the Russell 1000 was down only a little over 0.5%. This is the biggest weekly divergence between large cap and small cap stocks for 2015 and largest since mid-July of last year. In fact, going back to December 1992 there have only been 45 weeks (not including last week) where the Russell 1000[...]

  • VIX | Trader Talk | May 2, 2015, 2:02 PM

    The Week in VIX - 4/27 - 5/1

    The Week in VIX - 4/27 - 5/1

    VIX was up slightly this past week as the S&P 500 dropped a little. VIX futures were down across the board as the lack of movement from VIX. This small disconnect can be attributed to the market getting past a couple of known unknowns (FOMC & GDP). We did have one day of excitement as the S&P 500 was down significantly on Thursday which pushed VIX into the 15’s and kept the May VIX future trading with a 16 handle the whole day. That excitement was short lived as the S&P 500[...]

  • Market News | VIX | Trader Talk | Futures | May 2, 2015, 8:31 AM

    The Week in Volatility Indexes and ETPs - 4/27 - 5/1

    The Week in Volatility Indexes and ETPs - 4/27 - 5/1

    If you took last week off from trading and are playing a little catch up this morning the week over week term structure chart appears to say you didn’t miss much. Aa I type this I think, who would take a break when GDP and FOMC announcements are on the schedule, but now I am getting back on track. Since the picture above misses a 20 point S&P 500 drop on Thursday followed by a 20 point gain on Friday I decided to create a graph showing the lows and highs for VXST, VIX, VXV,[...]

  • Market News | VIX | Trader Talk | May 1, 2015, 3:06 PM

    The Weekly Options News Roundup – 5/1/2015

    The Weekly Options News Roundup – 5/1/2015

    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. Weeklys – The Short-Term Play Weeklys options, which allow investors to fine-tune the timing of their hedging and trading activities, continue to grow in popularity.  Earlier today, CBOE Holdings announced it will launch VIX Weeklys futures and options in the coming months, pending regulatory review and approval. “Big[...]

  • Trader Talk | Strategy | May 1, 2015, 1:40 PM

    BigTrends.com 2015 Kentucky Derby Handicapping & Analysis

    BigTrends.com 2015 Kentucky Derby Handicapping & Analysis

    (Editors Note:  For the last few years, Price Headley, a Louisville native and CEO of Bigtrends.com, has been kind enough to share his thoughts on the running of the annual Kentucky Derby from Churchill Downs.  Saturday's Derby will be the 141st .  He takes a theoretical $100 and tells how he would invest it (bet might be a better word).  His very able cohort, Moby Waller, gives his outlook for the race as well, and Moby uses a few different factors in his analysis.  Click[...]

  • VIX | Blogging Options | Trader Talk | May 1, 2015, 12:21 PM

    CBOE Mid-Day Update 5.1.15

    CBOE Mid-Day Update 5.1.15

    Volatility as an asset class FireEye (FEYE) is recently up $3.03 to $44.34 after the information security firm reported a lower than expected Q1 operating loss and provided better than expected guidance. May call option implied volatility is at 41, June is at 40; compared to its 26-week average of 59. First Solar (FSLR) is recently down $2.59 to $57.12 after reporting weaker than expected Q1 results but provided higher than expected Q2 EPS guidance. May call option implied volatility is at 34, June[...]

  • Technical Analysis & Charts | VIX | Trader Talk | Futures | May 1, 2015, 10:08 AM

    Weekly Market Commentary 5.1.15

    Weekly Market Commentary 5.1.15

    Stocks dawdled at or just above the previous all-time highs, but couldn't convincingly push through with a strong move.  As a result, things began to deteriorate. Now, 2070 has some significance. If $SPX breaks down below 2070, a more bearish scenario should unfold. Equity-only put-call ratios are still on buy signals.  Both have "wiggles" curling upwards after Thursday's big down day, but they remain on buy signals. Market breadth has been somewhat weak of late, and that has[...]