Trader Talk Archives - CBOE Blogs

  • 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[...]

  • Trader Talk | Education | Feb 10, 2015, 9:45 AM

    The Market is Mired in a Confidence Crisis

    The Market is Mired in a Confidence Crisis

    There really is no other way to explain the twists and turns of this market other than increasing doubts that higher prices can continue. We're not talking about outrageous valuations and lack of investing control as we saw back in the late 90's. No, I am referring to self-doubt and the confidence crisis that was created from the global financial collapse just six short years ago. The confidence built by the Fed through several monetary programs reached peak levels recently. While we tend to like[...]

  • VIX | Blogging Options | Trader Talk | Feb 10, 2015, 7:39 AM

    Blogging Options: CBOE Morning Update 2.10.15

    Blogging Options: CBOE Morning Update 2.10.15

    Overseas markets mixed to higher.  Bonds firm.  Oil down 1%.  GPS lower by $0.68 on lower sales, ARO lost less than expected and has added $0.40 in early action.  Watch the Greeks and Oil.  Volatility as an asset class: Urban Outfitters (URBN) is up $2.54 to $39.05 in the premarket after reporting Q4 revenue of $1B, compared to consensus $997M. Q4 comparable Retail segment net sales increased 6%. Overall option implied volatility of 31 compares to its 26-week average of 30. Qualcomm[...]

  • VIX | Trader Talk | Education | Futures | Feb 9, 2015, 1:45 PM

    SPX Range & Oil Key Juncture - Weekly Market Outlook

    SPX Range & Oil Key Juncture - Weekly Market Outlook

    Despite Friday's modest stumble, last week was clearly a good one for the market, bringing it back from the brink of a significant correction and putting it back within reach of a significant breakout.  Yet, as has been the case too many times over the past couple of months, the bulls just couldn't deliver the knockout blow to the bears when they needed to the most.  This isn't to say it's not going to happen.  It is to say, however, it's definitely not a done deal and a move back[...]

  • Market News | Trader Talk | Futures | Trade Ideas | Feb 7, 2015, 12:25 PM

    The Week in VIX - 2/2 - 2/6

    The Week in VIX - 2/2 - 2/6

    With a 17% drop in VIX, the week ended not just in contango, but pretty steep contango. Especially when looking at February versus the spot. Also taking into account there is a week and a half remaining until February settlement. February at almost a 2 point premium to VIX in a pretty good indication that traders are still worried about the health of the overall stock market and the possibility that February settlement comes in higher than current levels. I’m going to deviate a[...]

  • Market News | VIX | Trader Talk | Feb 6, 2015, 3:15 PM

    The Weekly Options News Roundup – 2/6/2015

    The Weekly Options News Roundup – 2/6/2015

    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. There’s a “Best App” For That On Wednesday, CBOE Mobile was named “Best Mobile Application” at the fourth annual Wall Street Letter Institutional Trading Awards.  Since launching just a couple of months ago, there have been more than 17,000 downloads and/or updates of CBOE Mobile. “The[...]

  • Weekly Market Commentary 2.6.15

    Weekly Market Commentary 2.6.15

    The stock market has had a strong week. Even so, $SPX remains within the general confines of the 1990-2065 trading range, on a closing basis. We still await a breakout from that range in order to establish an intermediate-term trend. In something of a surprise, both equity-only put-call ratios rolled over to buy signals after Tuesday's trading this week. The computer programs that we use to monitor these charts were right on top of this new signal. Market breadth has been jumping back[...]

  • VIX | Blogging Options | Trader Talk | Feb 6, 2015, 12:03 PM

    CBOE Mid-Day Update 2.6.15

    CBOE Mid-Day Update 2.6.15

    Volatility as an asset class Pandora (P) is recently down $3.29 to $15.12 on a Q4 revenue miss on weakness in several ad verticals and weaker than expected listener hours. February call option implied volatility is at 56, March is at 54, June is at 53; compared to its 26-week average of 62. Expedia (EXPE) is recently down $9.85 to $78.15 on the Q4 miss driven by FX headwinds, rate pressure, and increasing losses in China. February call option implied volatility is at 35, March is at 31, April is[...]

  • VIX | Trader Talk | Education | Futures | Feb 6, 2015, 10:45 AM

    Extended Trading Hours Planned for March in SPX and VIX Options

    Extended Trading Hours Planned for March in SPX and VIX Options

    Investors from around the world have expressed interest in Extended Trading Hours (ETH) for key risk management tools, and, since June 2014, the trading hours for futures on the CBOE Volatility Index® (VIX®) have been expanded to nearly 24 hours a day, five days a week. PLANS FOR ETH FOR SPX AND VIX OPTIONS NEXT MONTH CBOE announced a plan this morning to launch Extended Trading Hours for options on both the S&P 500 and the VIX indexes next month, contingent upon SEC approval. CBOE[...]

  • VIX | Blogging Options | Trader Talk | Feb 5, 2015, 12:18 PM

    CBOE Mid-Day Update 2.5.15

    CBOE Mid-Day Update 2.5.15

    Volatility as an asset class Green Mountain Coffee (GMCR) is recently down $5.30 to $115.90 after reporting a Q1 EPS beat but a sales miss and reduced FY15 sales guidance mostly due to currency drag. February call option implied volatility is at 40, March and April is at 34; compared to its 26-week average of 42. Sprint (S) is recently up 30c to $4.87 after reporting Q3 platform net additions of 967K. February call option implied volatility is at 58, March is at 54, April is at 51, June is at 50;[...]

  • Market News | Trader Talk | Trade Ideas | Feb 5, 2015, 11:09 AM

    Earnings Histories - Week of 2/9 - 2/13

    Earnings Histories - Week of 2/9 - 2/13

    I've called this blog Next Week in Weeklys, but in reality it has turned into a resource people are using when considering trading around earnings.  Therefore, we have a new title. The table below shows three years of earnings history for stocks that have short dated options (Weeklys) available for trading.  In cases where there is not three years of data available I italicize the line.  

  • VIX | Blogging Options | Trader Talk | Feb 4, 2015, 11:56 AM

    CBOE Mid-Day Update 2.4.15

    CBOE Mid-Day Update 2.4.15

    Volatility as an asset class General Motors (GM) is recently up $1.63 to $35.55 on better than expected Q4 results and guidance. February weekly call option implied volatility is at 33, February is at 26, March is at 24, June is at 23; compared to its 26-week average of 25. Polo Ralph (RL) is recently down $27.40 to $143.43 in the premarket on less than expected Q3 revenue of $2.03B. February call option implied volatility is at 28, March is at 24, April is at 22; compared to its 26-week average[...]

  • Trader Talk | Education | Feb 3, 2015, 2:15 PM

    Want Success in Trading? Lose Your Opinion --- Now

    Want Success in Trading?  Lose Your Opinion --- Now

    It's hard to not listen to the experts and pundits who offer an array of opinions and points of view.  Everyone has to be smarter than us, right?  A market opinion is like a mouth - everyone has one and most don't know when to shut it (there is a similar analogy most know of, but I wanted to keep it clean!).  But those opinions tend to sway us to move in dangerous ways.  The market will never divulge an opinion, but like Jack Webb said in Dragnet:  'just the facts'. Lately[...]

  • VIX | Blogging Options | Trader Talk | Feb 3, 2015, 12:30 PM

    CBOE Mid-Day Update 2.3.15

    CBOE Mid-Day Update 2.3.15

    Volatility as an asset class Global X FTSE Greece 20 ETF (GREK) is recently up $1.72 to $13.45 after Greece's new government proposed ending the confrontation with its creditors. February call option implied volatility is at 63, March is at 59, April is at 56; compared to its 26-week average of 47. Cliffs Natural (CLF) is recently down after reporting Q4 results.  February weekly call option implied volatility is at 135, February is at 105, March is at 104, June is at 102; compared to its 26-week[...]

  • Market News | Blogging Options | Trader Talk | Feb 3, 2015, 8:07 AM

    Blogging Options: CBOE Morning Update 2.3.15

    Blogging Options: CBOE Morning Update 2.3.15

    Oil rallying (above $50, +2.5%) looks to lead stocks higher for a second straight day.  European shares higher but confusion with Greek statements pares gains. Staples & office Depot said to be in talks.  Aussies cut rates, NIKKEI off +1% on soft Japanese bond sale.  If you haven't seen it, find the video on youtube with the mayor of Sun Prairie Wis. getting a little too close to a groundhog yesterday. Volatility as an asset class Energy Select Sector SPDR (XLE) is up $0.74 to[...]