• VIX | Blogging Options | Trader Talk | Mar 30, 2015, 11:47 AM

    CBOE Mid-Day Update 3.30.15

    CBOE Mid-Day Update 3.30.15

    Volatility as an asset class Auto Manufacturer’s Option Implied Volatility flat into the start of the New York Auto Show Tesla (TSLA) is recently down $2 to $183.06. Over all option implied volatility of 42 compares to its 26-week average of 45. Ford (F) is recently up 24c to $16.22. Over all option implied volatility of 21 compares to its 26-week average of 24. Honda Motor Co (HMC) is recently up 17c to $33.63. Over all option implied volatility of 20 compares to its 26-week average of 22. General[...]

  • Market News | VIX | Trader Talk | Mar 27, 2015, 3:37 PM

    The Weekly Options News Roundup – 3/27/2015

    The Weekly Options News Roundup – 3/27/2015

    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. CBOE Product Innovation Earlier in the month, CBOE held its annual Risk Management Conference in Carlsbad, California, where more than 300 industry professionals gathered to discuss all things VIX.  EQDerivatives’s Peter Thompson caught up with CBOE’s President and COO, Edward Provost to discuss CBOE’s[...]

  • 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[...]

  • Market News | Blogging Options | Trader Talk | Mar 27, 2015, 8:08 AM

    Blogging Options: CBOE Morning Update 3.27.15

    Blogging Options: CBOE Morning Update 3.27.15

    Q4 GDP Final showed a 2.2% increase, less than the 2.4% consensus.  Q1 GDP first estimate due in five weeks, early consensus shows a drop to 1.5% rise.  Oil fell overnight as mid-east war did not escalate, Dollar higher.  DOW with spinoff, EMC downgraded.  Overseas markets mixed with NIKKEI closing down ~1%.  U of M Sentiment due 30-minutes into trading day.  Good games last night in NCAA Tourney. Volatility as an asset class: BlackBerry (BBRY) closed at $9.30 into reporting[...]

  • Market News | Trader Talk | Education | Futures | Mar 26, 2015, 1:30 PM

    CBOE, C2 & CFE Good Friday Holiday Trading Schedule

    CBOE, C2 & CFE Good Friday Holiday Trading Schedule

    We have another long weekend coming up.  A week from tomorrow, Friday April 3rd is Good Friday. Thursday, April 2nd will have regular trading hours for all products at CBOE, C2 and CFE. Friday April 3rd, CBOE and C2 are closed for business, so there will be no Stock, ETF or Index option trading on that date.  Regular trading will resume Monday morning. On Thursday evening April 2nd, CFE opens its extended trading session at 3:30pm CDT for VIX (VX) Futures and will close at 8:15am Friday,[...]

  • VIX | Blogging Options | Trader Talk | Mar 26, 2015, 12:00 PM

    CBOE Mid-Day Update 3.26.15

    CBOE Mid-Day Update 3.26.15

    Volatility as an asset class Accenture (ACN) is recently up $6.21 to $94.42 after the consulting company raised its growth target.  April weekly call option implied volatility is at 23, April is at 15, May is at 16, August is at 17; compared to its 26-week average of 19. Five Below (FIVE) is recently up $3.81 to $36.02 after the teen focused retailer reported Q4 profit rose 34% and plans to continue its rapid expansion. April call option implied volatility is at 36, May and August is at 35;[...]

  • Market News | Blogging Options | Trader Talk | Mar 25, 2015, 8:02 AM

    Blogging Options: CBOE Morning update 3.25.15

    Blogging Options: CBOE Morning update 3.25.15

    Chicago (Northfield) based Kraft joins Warren Buffett's conglomerate, see below.  "Synergies" = possible layoffs, we'll see.  February Durables drop 1.4%, +0.2% expected.  Most of the components looked awful.  January Durable Goods revised sharply lower. Relationship to positive Housing Starts yesterday and revised Q1 GDP will be discussed on trading desks today.  10-year 1.86%.  Volatility as an asset class Kraft Foods (KRFT) is up $18.60 to $80 in the preopen[...]

  • Blogging Options | Trader Talk | Mar 24, 2015, 8:05 AM

    Blogging Options: CBOE Morning Update 3.24.15

    Blogging Options: CBOE Morning Update 3.24.15

    Stocks look flat on the opening, as CPI and Core Rate each rise 0.2%.  McCormick (MKC) beat estimates, looks to open higher by 4%. NFLX could help NASDAQ.  Overseas markets modestly higher.  10-year 1.904. Housing numbers released after the opening, expected higher. Volatility as an asset class: Chesapeake (CHK) is up $0.44 to $14.55 in the preopen on Carl Icahn disclosing an increased stake in the company to 73M shares (10.98%), up from 66M shares (9.98%) in December. March weekly[...]

  • Market News | Trader Talk | Mar 23, 2015, 5:27 PM

    Earnings This Week - 3/23 - 3/27

    Earnings This Week - 3/23 - 3/27

    A more appropriate title for this blog would be "Earnings Later This Week" as there are only four stocks with short dated options reporting earnings this week and they all report either Thursday or Friday.    The list below depicts three years of earnings history with the biggest move higher, lower, average move, and what the stock did last quarter shown for each stock.

  • Technical Analysis & Charts | VIX | Trader Talk | Education | Mar 23, 2015, 2:10 PM

    The Fed Gives A Boost - Weekly Market Outlook

    The Fed Gives A Boost - Weekly Market Outlook

    Thanks to a little help from the Federal Reserve on Wednesday, the market broke out of a three-week-old bearish rut, and in the process may have rekindled a bigger uptrend.  In fact, technically speaking, the uptrend is back underway. We'll handicap the market below.  First, let's run down last week's and this week's economic news. Economic Data There's little doubt as to last week's economic focal point... the release of the minutes from the most recent FOMC meeting. It was an interesting[...]

  • VIX | Blogging Options | Trader Talk | Mar 23, 2015, 11:58 AM

    CBOE Mid-Day Update 3.23.15

    CBOE Mid-Day Update 3.23.15

    Volatility as an asset class Pfizer (PFE) is recently up 95c to $35.22, fresh ten year high, after a Jefferies analyst wrote that the company's shares are poised to rise significantly over the next one to two years.  Overall option implied volatility of 16 compares to its 26-week average of 17. NVIDIA (NVDA) is recently down 65c to $22.02 on Goldman’s downgrade to Sell with a $20 price target. The firm believes the market under-appreciates the risk of the Intel (INTC) license not being[...]

  • Blogging Options | Trader Talk | Mar 23, 2015, 7:55 AM

    Blogging Options: CBOE Morning Update 3.23.15

    Blogging Options: CBOE Morning Update 3.23.15

    Stocks bouncing around unchanged this morning, as 3" of snow greet Chicago commuters.  Oil prices down again, but be aware that front month crude changes months today.  Biogen downgraded before opening. NCAA tourney gets high marks for exciting games this past weekend. Volatility as an asset class: Global X FTSE Greece 20 ETF (GREK) closed at $10.75 into meeting between the leaders of Greece and Germany to resolve debt issues. Overall option implied volatility of 68 compares to its[...]

  • Market News | Trader Talk | Mar 22, 2015, 4:29 PM

    The Week in Small Cap Stocks - 3/16 - 3/20

    The Week in Small Cap Stocks - 3/16 - 3/20

    Small cap stocks widened the lead against large cap stocks for 2015 as the Russell 2000 was up 2.78% while the Russell 1000 advanced by 1.95% last week. That places the Russell 2000 up 5.12% while the Russell 1000 is now up 2.96% for 2015. The volatility markets diverged a bit from the small cap outperforming large cap stocks as the large cap focused VIX lost 18.63% while the CBOE Russell 2000 Volatility Index (RVX) was down 16.48% for the week. Despite this the RVX / VIX spread remains a low levels[...]

  • VIX | Trader Talk | Futures | Mar 22, 2015, 8:56 AM

    The Week in VIX - 3/16 - 3/20

    The Week in VIX - 3/16 - 3/20

    Last week VIX experienced the second biggest week over week percentage drop for 2015. The largest move lower occurred the week before the three day Martin Luther King holiday weekend so that one may need to be given an asterisk.   However, VIX going back to the tweens last week should not be ignored as an indication of a new round of equity market complacency sinks in. Someone needs to tell that to the April VIX futures which remain at a pretty high premium (over 3 points) relative to the[...]

  • Market News | VIX | Trader Talk | Strategy | Mar 21, 2015, 2:48 PM

    The Week in Volatility Indexes and ETPs - 3/16 - 3/20

    The Week in Volatility Indexes and ETPs - 3/16 - 3/20

    I’m repeating the alteration I did last week to the term structure chart below. Instead of a week over week comparison I show the closing levels for VXST, VIX, VXV, and VXMT relative to the average levels in 2014. Note that near term volatility has thrown in the towel, but concern about a potential downturn for the equity market persists in the three and six month time frames.  Longer dated volatility is still elevated, despite dropping last week in sync with VXST and VIX. A 2.66% rally[...]