Trader Talk Archives - CBOE Blogs

  • Blogging Options | Trader Talk | Mar 19, 2015, 12:50 PM

    CBOE Mid-Day Update 3.19.15

    CBOE Mid-Day Update 3.19.15

    Fairly heave option volume mid-day as traders and investors digest removal of "patient" from FED comments, which was expected. SPX traded ~700K contracts, while VIX with 200K and VIX Futures 71K.  Sounds of basketballs bouncing reverberate around trading floors and desks across the US.  GS down $2, PCLN lower by $6.  Volatility as an asset class:  (We'll miss you Gail Osten - Those we held in our arms for a little while, we hold in our hearts forever). Facebook (FB)[...]

  • Market News | Trader Talk | Mar 19, 2015, 11:32 AM

    Block Trade Analysis - Emerging Market Bull Put Spread

    Block Trade Analysis - Emerging Market Bull Put Spread

    Early yesterday, long before Janet Yellen shared her insights with the world, there was a block trade I came across with a bullish outlook for Emerging Markets. About 5 minutes after the opening bell rang there was a large seller of the EEM Apr 17th 39 Puts at 0.79 who purchased a similar number of EEM Apr 17th 37 Puts at 0.26 for a net credit of 0.51. At the time of the trade EEM was trading around 39.10, but moved higher in sync with the equity market rally that occurred after the FOMC announcement[...]

  • Blogging Options | Trader Talk | Mar 19, 2015, 8:00 AM

    Blogging Options: CBOE Morning Update 3.19.15

    Blogging Options: CBOE Morning Update 3.19.15

    AAPL goes into the DJIA at today's opening.  Oil off over 3% in early trade, Kuwait comments about production levels keeping steady, even as demand lags.  Dollar higher vs. Euro.  Weekly Claims in line, Stocks expected to give back some of yesterday's gains.  EBAY downgraded preopen.  10-year 1.93%.  Get your NCAA brackets completed,  games begin in 2 hours.  Volatility as an asset class: Silver Wheaton (SLW) is down 1c to $19 in the premarket after reporting[...]

  • VIX | Blogging Options | Trader Talk | Mar 18, 2015, 12:52 PM

    CBOE Mid-Day Update 3.18.15

    CBOE Mid-Day Update 3.18.15

    Volatility as an asset class Herbalife (HLF) is recently up $3.90 to $38.34 after winning dismissal of class action "pyramid scheme" lawsuit. March call option implied volatility is at 106, April is at 68, May is at 70; compared to its 26-week average of 65. General Mills (GIS) is recently down 45c to $51.60 after the food company's Q4 earnings beat estimates. March call option implied volatility of 24, April is at 17, July is at 16; compared to its 26-week average of 18 Navistar (NAV)[...]

  • VIX | Blogging Options | Trader Talk | Mar 18, 2015, 7:42 AM

    Blogging Options: CBOE Morning Update 3.18.15

    Blogging Options: CBOE Morning Update 3.18.15

    Traders patiently awaiting FED minutes and their wording early this afternoon.  FDX with good Quarterly numbers beating estimates by $0.13 but guided full year lower.   USD lower, 10-year 2.02%, overseas markets mixed on light data.  13K VIX Futures trade in early session this morning.  Volatility as an asset class: FedEx (FDX) is off $2.75 to $172.96 in the preopen on better than expected Q3 results, but sees FY15 EPS $8.80-$8.95 (consensus $8.96). March call option implied volatility[...]

  • VIX | Trader Talk | Education | Futures | Mar 17, 2015, 1:00 PM

    VIX March Settlement Reminder: Wednesday 3.18.15

    VIX March Settlement Reminder: Wednesday 3.18.15

    Settlement Reminder: Today, Tuesday, March 17th is the last trading day for March in the following: VIX, RVX, VXN, GVZ, OVX, VXEEM, VXEWZ, and VXTYN futures* and options. These contracts settle tomorrow, Wednesday morning, March 18th. PLEASE NOTE:  VIX options with an expiration date of March 18, 2015 will cease trading at 3:15 p.m. CT on Tuesday, March 17, 2015. These expiring options will NOT trade during the ETH session on Wednesday, March 18, 2015. * This is in contrast to VIX futures[...]

  • VIX | Blogging Options | Trader Talk | Mar 17, 2015, 11:59 AM

    CBOE Mid-Day Update 3.17.15

    CBOE Mid-Day Update 3.17.15

    Volatility as an asset class CBOE Interest Rate 5 Year Note (FVX) is recently down 1.1% to 15.51 into Wednesday’s FOMC policy meeting decision CBOE Interest Rate 10-year T-Note (TNX) is recently down 1.9% to $20.59 compared to its 10-day moving average of 21.27. CBOE 30-Year Treasury Bond (TYX) closed is recently down 2.3% to 26.16; compared to its 10-day moving average of 27.14. CBOE/CBOT 10-year U.S. Treasury Note Volatility Index (VXTYN) down 0.51% to 5.80 cboe.com/VXTYN CBOE EuroCurrency[...]

  • Market News | Blogging Options | Trader Talk | Mar 17, 2015, 7:55 AM

    Blogging Options: CBOE Morning Update 3.17.15

    Blogging Options: CBOE Morning Update 3.17.15

    Top 'o the mornin to ya.   Oil hit $42.65 this morning (Brent approaching $53), as traders contemplate an additional 800K barrel's of Oil per day arriving after Iran Nuke deal.  Housing Starts fell 17%, lowest print in 18 months.  Weather blamed again, but Starts in West fell 18.2%.  How this affects FED meeting unclear.  Early election results in Israel expected near NY close.  European stocks lower, Asia mixed.  10-year yield drops below 2.06%.  Almost[...]

  • Trader Talk | Mar 16, 2015, 7:38 PM

    Earnings This Week - 3/17 - 3/20

    Earnings This Week - 3/17 - 3/20

    Apologies all around for the lateness of this post, but better late than never.  Only a handful of stocks with short dated options report this week.  As always the histories represent three years of the biggest up move, biggest drop, average move, and the stock price reaction to earnings last quarter.

  • VIX | Blogging Options | Trader Talk | Mar 16, 2015, 11:52 AM

    CBOE Mid-Day Update 3.16.15

    CBOE Mid-Day Update 3.16.15

    Volatility as an asset class Procter & Gamble (PG) is recently up $1.64 to $83.46 on weighs deal for beauty brands, Bloomberg reports. March call option implied volatility is at 20, April and March is at 15; compared to its 26-week average of 15. Proshares UltraShort Barc 20 Year Treasury ETF (TBT) is recently down 90c to $43.82 into the FOMC policy meeting decision on March 18. March call option implied volatility is at 44, April is at 31, June is at 29; compared to its 26-week average of 26. Life[...]

  • Market News | VIX | Trader Talk | Futures | Mar 15, 2015, 8:15 AM

    The Week in Small Caps - 3/9 - 3/13

    The Week in Small Caps - 3/9 - 3/13

    Small cap stocks continue to shine relative to large caps. The Russell 2000 was up 1.2% last week while the S&P 500 actually lost value. The perceived risk for investing in large cap stocks rose last week with VIX climbing over 5%. It was a different story for the CBOE Russell 2000 Volatility Index (RVX) which was higher, but only by 0.62%. Also, the front three month futures contracts actually lost value last week. The wide spread that was common between RVX and VIX for most of 2014 has not[...]

  • Market News | VIX | Trader Talk | Futures | Mar 14, 2015, 4:15 PM

    The Week in VIX - 3/9 - 3/13

    The Week in VIX - 3/9 - 3/13

    VIX rose just over 5% to finish the week at 16.00. This occurred as the S&P 500 lost just under 1%, but put up the third losing week in a row which has some market observers scratching their heads as to just what the heck is going on. The feeling is that VIX should be higher with the stock market working lower. The curve above still has April and the farther months somewhat elevated relative to the index. It could be the consensus is that we have smooth sailing for the near term,[...]

  • Market News | VIX | Trader Talk | Futures | Mar 14, 2015, 12:28 PM

    The Week in Volatility Indexes and ETPs - 3/9 - 3/13

    The Week in Volatility Indexes and ETPs - 3/9 - 3/13

    The S&P 500 dropped for the third consecutive week with the reaction from the S&P 500 volatility term structure chart being a slight shift to the upside. I altered the term structure graphic that appears below to show where we are right now compared to recently history. My definition of recent history is the average VXST – VIX – VXV – VXMT curve is the average in 2014. What I’ve highlighted here is the spread between the closing levels on Friday and the[...]

  • Market News | Trader Talk | Mar 13, 2015, 9:16 PM

    Block Trade Analysis - Long Dated USO Put Spread

    Block Trade Analysis - Long Dated USO Put Spread

    When I arrived in NY Thursday late Thursday night I ended up with a cab driver who sounded just like Joe Pesci. In fact when he started talking to me I thought it was coming from the video screen in the back seat so I leaned forward to mute the noise. However, the noise never ended… He asked what I do for a living and when options came up his very excited response was, “I want to buy oil options, it’s going to move and I want to know how to make some money when it starts to go back[...]

  • Market News | VIX | Trader Talk | Mar 13, 2015, 3:00 PM

    The Weekly Options News Roundup – 3/13/2015

    The Weekly Options News Roundup – 3/13/2015

    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. A Whole New World Earlier this week, CBOE announced that its first two MSCI Index options -- the MSCI Emerging Markets Index (option ticker: MXEF) and the MSCI EAFE Index (option ticker: MXEA) -- will launch on April 21, pending regulatory approval.  Customers will have the opportunity to efficiently gain exposure[...]