Trader Talk Archives - CBOE Blogs

  • VIX | Trader Talk | Education | Futures | Feb 21, 2015, 10:53 AM

    The Week in Volatility Indexes and ETPs - 2/16 - 2/20

    The Week in Volatility Indexes and ETPs - 2/16 - 2/20

    Usually it is pretty easy for me to come up with something new to say regarding what went on the volatility markets last week. However, it has been a lot of the same for a pretty long time now. We have now experienced three all-time highs for the S&P 500 in 2015, which is three more than some forecasters thought we’d see, and VIX is working down to levels we were accustomed to over the past couple of years. Friday’s VIX close of 14.30 is just a tad higher than the average VIX close[...]

  • VIX | Blogging Options | Trader Talk | Feb 20, 2015, 11:30 AM

    CBOE Mid-Day Update 2.20.15

    CBOE Mid-Day Update 2.20.15

    Volatility as an asset class John Deere (DE) is recently down 26c to $91.42 after farm, construction and forestry equipment maker cut its fiscal 2015 income forecast earlier in conjunction with its Q1 report. February weekly call option implied volatility is at 21, March is at 18, June is at 17; compared to its 26-week average of 20. Noodles & Company is recently down after saying 2015 earnings growth will be at the low end of range. March call option implied volatility is at 55, May is at 54,[...]

  • Market News | VIX | Trader Talk | Feb 20, 2015, 7:48 AM

    Blogging Options: CBOE Morning Update 2.20.15

    Blogging Options: CBOE Morning Update 2.20.15

    European markets turn slightly negative as Greece situation not resolved yet.  DE earnings beat lowered estimates but pared back guidance has shares off $1.25 to $90.46.  WMT said to be downgraded by Barclay's, drops $1.00 to $82.52. Gold & Oil higher, US$ higher. Watch for bumpy early session on Greece deal/no deal.  Options volume average Thursday, SPX trades over 1mm contracts. Volatility as an asset class: Global X FTSE Greece 20 ETF (GREK), sellers emerged in late trading,[...]

  • Trader Talk | Education | Feb 19, 2015, 2:50 PM

    Weekly Weekly's Option Report for 2.19.15

    Weekly Weekly's Option Report for 2.19.15

    // I'm Angela Miles covering weekly options. Tomorrow, traditional options expire and next Friday Feb. 27 it's a Weekly's expiration. A busy earnings week is ahead starting Monday with SINA. The options paper is surprisingly light in the early going and the market is wide in SINA. That is likely to pick up into earnings the Chinese internet company tends to be popular with traders. The straddle at the 38 strike prices in at[...]

  • Market News | Blogging Options | Trader Talk | Feb 19, 2015, 7:55 AM

    Blogging Options: CBOE Morning Update 2.19.15

    Blogging Options: CBOE Morning Update 2.19.15

    Pitchers and Catchers Report (to Spring Training).  This should have warmed up traders this morning with the temperature -8 degrees in Chicago but stock futures lower. Oil getting hammered on inventory build and no signs of world economies improving.  Greece proposal on bail-in is said to be rejected,  WMT reported earnings which beat (lower tax rate helped) but guided lower (from $1.10 to $0.90 to $1.10 range) and is off $1.20.  Overseas markets flat with European stocks watching[...]

  • Anticipating MSCI EAFE Index Option Price Behavior

    Anticipating MSCI EAFE Index Option Price Behavior

    Over the next few weeks there is going to be a lot going on at CBOE. The Options Institute will be turning 30 soon, VIX and SPX option hours are going to be expanded to a 2:00 am Chicago opening, and the always informative US version of the CBOE Risk Management Conference will be held in early March. However, what is on the horizon that has me the most excited is the launch of index option trading on two of the widely followed MSCI family of indexes. As a side note - my interest in new[...]

  • VIX | Trader Talk | Education | Futures | Feb 17, 2015, 1:45 PM

    VIX February Settlement Reminder: Wednesday 2.18.15

    VIX February Settlement Reminder: Wednesday 2.18.15

    Settlement Reminder: Today, Tuesday, February 17th is the last trading day for February in the following: VIX, RVX, VXN, GVZ, OVX, VXEEM, VXEWZ, and VXTYN futures and options. These contracts settle tomorrow, Wednesday morning, February 21st. We will post the settlement values when they are released tomorrow morning.

  • Blogging Options | Trader Talk | Education | Feb 17, 2015, 12:51 PM

    CBOE Mid-Day Update 2.17.15

    CBOE Mid-Day Update 2.17.15

    Stocks regained their footing and are now on the plus side.  Stories out of Europe of Greece taking a softer stance in negotiations with the EU are being told.   But reports of Ukraine truce in jeopardy putting damper on rally.  Economic numbers released this morning on weak side. Goodyear Tire (GT) is up $0.68 to $26.59 after reporting Q4 EPS excl items 59c, compared to consensus 58c. February call option implied volatility is at 37, March is at 27, April is at 30; compared to its[...]

  • Market News | VIX | Trader Talk | Futures | Feb 15, 2015, 10:18 AM

    The Week in VIX - 2/9 - 2/13

    The Week in VIX - 2/9 - 2/13

    The S&P 500 finished Friday at a 2015 closing high while VIX finished the day at the lowest closing price for 2015. What is a little perplexing about the chart below is the relationship between spot VIX and the February contract.   I am well aware that VIX is under a slight amount of extra pressure due to the three day holiday, but all day Friday the February VIX future was much greater than the 1.00 point premium to the underlying index. I understand the world has been full of surprises[...]

  • Blogging Options | Trader Talk | Feb 13, 2015, 1:07 PM

    CBOE Mid-Day Update 2.13.15

    CBOE Mid-Day Update 2.13.15

    After an abbreviated trip into record territory, markets have given up most of the morning gains.  ~10.5mm options contracts trade by mid-day, with SPX (643K) and VIX (371K) leading the Index volume at CBOE.  RUT recorded over 51K option contracts, with SPY at 1.1mm and AAPL checked in with over 600K. The energy sector has shown the most strength in the morning session, with Utilities showing the least spark.  BIDU halts its recent slide and is up $6, GOOG adds $4.50, AMZN $3 to the[...]

  • Market News | VIX | Trader Talk | Futures | Feb 13, 2015, 9:46 AM

    Earnings Next Week - 2/17 - 2/20

    Earnings Next Week - 2/17 - 2/20

    Next week is a short week, but still heavy on the earnings front.  The numbers below depict the biggest up and down moves over the last three years along with the average move and what the stock did in response to the last earnings release -  

  • Blogging Options | Trader Talk | Feb 13, 2015, 7:41 AM

    Blogging Options: CBOE Morning Update 2.13.15

    Blogging Options: CBOE Morning Update 2.13.15

    Earnings continue to roll in, several misses and downgrades (GPS, Abercrombie).  Overseas markets higher except Japan.  Greece with softer tone as their financial situation deteriorates.  Expect this mornings action to be early, as Presidents Day long weekend upon us.  Volatility as an asset class: AIG (AIG) is down $0.87 to $51.58 in the premarket after posting a less than expected Q4 profit. February weekly option implied volatility is at 58, February is at 28, March is at 24,[...]

  • Trader Talk | Education | Feb 12, 2015, 1:54 PM

    Weekly Weekly's for 2.12.15

    Weekly Weekly's for 2.12.15

    // Apple officially dominates the world in terms of market cap and it’s a major play in weekly options. I’m Angela Miles reporting today on weekly options expiring this Friday, the 13th. Next Friday is a traditional options expiration. Traders and investors are taking a shine to Apple this week as the stock breaks out to new highs. Today AAPL is trading around $126. Plenty of call buyers are moving into the market[...]

  • VIX | Blogging Options | Trader Talk | Feb 12, 2015, 12:17 PM

    CBOE Mid-Day Update 2.12.15

    CBOE Mid-Day Update 2.12.15

    Stocks push higher on calming of tensions in Ukraine.  Gold and Oil off fractionally, 10-year yield off 2-basis points.  European equities closed higher, FTSE up 9.96 points. Option activity picked in the first half of todays session.  With ~10.2 mm options contracts trading, SPX with 555K, VIX options showed 290K, 1.4mm SPY options change hands.  AAPL traded 1.25m contracts, BIDU, CSCO and GOOG options fairly busy. Baidu (BIDU) is down $9.98 to $204.72 after the Chinese internet[...]

  • VIX | Blogging Options | Trader Talk | Feb 11, 2015, 7:54 AM

    Blogging Options: CBOE Morning Update 2.11.15

    Blogging Options: CBOE Morning Update 2.11.15

    Meetings in Brussels and Minsk overshadowing Q1 earnings today.  US stock futures mixed to lower, overseas markets much the same.  10-year unchanged.  Baltic Dry hitting a record low and this disturbing level starting to get attention. AOL earnings beat, revenues missed. Volatility as an asset class: PepsiCo (PEP) is up $2.86 to $101.40 in the premarket after reporting Q4 core EPS $1.12, compared to consensus $1.08. February weekly call option implied volatility is at 31, February[...]