VIX Archives - Cboe Blogs

  • Market News | Technical Analysis & Charts | VIX | Futures | Strategy | May 23, 2016, 9:49 AM

    BigTrends.com Weekly Market Outlook - Neutral With Downside Risk

    BigTrends.com Weekly Market Outlook - Neutral With Downside Risk

    The bulls and bears ended up in a stalemate last week. Both sides of the table looked as if they were going to take control at different points, but when all was said and done, neither side had the conviction need to rock the market out of its rut. The S&P 500's (SPX) (SPY) close of 2052.32 was only 0.27% better than the week-earlier close, and still right in the middle of some major support and resistance. The BigTrends TrendScore (for stocks) is a slightly anemic 56.6 out of a possible[...]

  • Market News | VIX | Trader Talk | Futures | Strategy | Trade Ideas | May 22, 2016, 6:00 AM

    Weekend Review - VIX Options and Futures - 5/16 - 5/20

    Weekend Review - VIX Options and Futures - 5/16 - 5/20

    The combination of VIX moving lower and June becoming the front month put some pressure on the June futures last week. I think maybe the lack of news flow expected over the next couple of weeks has something to do with that as well. Note the bifurcated futures performance from last week with many longer dated futures rising, which maybe could be the risk of higher rates or an ‘interesting’ presidential election hovering over the markets. Finally, I always like to periodically point out[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 21, 2016, 12:47 PM

    Weekend Review - Volatility Indexes and ETPs - 5/16 - 5/20

    Weekend Review - Volatility Indexes and ETPs - 5/16 - 5/20

    With the S&P 500 zig zagging this week, but finishing up by just over a quarter of one percent the curve was little changed. With one exception, VXST dropped 10% after we got past the FOMC minutes and the markets started to look forward to nothing for the next couple of weeks. VIX and VXMT rose and VXV was lower. I can’t remember the curve shifting like this ever, but since three out of the four moves were pretty small I wouldn’t read too much into it. The long VIX related[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 21, 2016, 10:18 AM

    Weekend Review - Russell 2000 Options and Volatility - 5/16 - 5/20

    Weekend Review - Russell 2000 Options and Volatility - 5/16 - 5/20

    Talk of the Fed raising rates after the June 16 – 17 two-day meeting that is looming has been heating up. If those that control such things are seeing pockets of growth in the US economy and consider it safe to raise rates, then growth must be back in fashion right? Well, that’s how the Russell 2000 (RUT) acted last week relative to the Russell 1000 (RUI) with the small cap benchmark rising a little more than 0.5% more than the Russell 1000 gained. RUT is still down on the year, but made[...]

  • Market News | VIX | Education | Trade Ideas | May 19, 2016, 1:43 PM

    The United Kingdom has Options….and So Do You

    The United Kingdom has Options….and So Do You

    The CBOE is the leader in listed Index and Equity options – and every so often there is a geopolitical event that can have reverberations in our financial markets. In just the past handful of years, we have experienced significant moves in volatility (both realized and implied) from elections and referendums, typically stemming from the other side of the Atlantic Ocean. On Thursday June 23rd, a referendum will be held to decide whether or not Britain should leave the European Union. Keep[...]

  • VIX | Futures | May 17, 2016, 4:50 PM

    Big VIX Spreads, the Fed, and the Flattening Yield Curve

    Big VIX Spreads, the Fed, and the Flattening Yield Curve

    Tomorrow afternoon (1 P.M. Chicago time) the market will digest the minutes from the April FOMC meeting. In advance of that release (which happens after every FOMC meeting) two (non-voting) Federal Reserve Board Presidents, John Williams (San Francisco) and Dennis Lockhart (Atlanta), both gave speeches that indicated the Fed could hike rates again as soon as June. The next FOMC meeting takes place on June 14th and 15th and includes a “Summary of Economic Projections” as well as a press[...]

  • Market News | Technical Analysis & Charts | VIX | Futures | May 16, 2016, 10:45 AM

    Weekly Market Outlook - On The Verge Of A Bigger Pullback?

    Weekly Market Outlook - On The Verge Of A Bigger Pullback?

    The market may have started the previous week on a bullish foot, but it certainly didn't end the week on one. Not only did the S&P 500 (SPX) (SPY) log three straight losing days to end last week's trading, but it broke below a key support level it couldn't really afford to break. Stocks still aren't past the point of no return yet, but it's alarmingly close. We'll dissect the odds below after running down last week's and this week's major economic headlines. Economic Data Not a lot of economic[...]

  • Sometimes It's Best to Sit Back and Wait

    Sometimes It's Best to Sit Back and Wait

    As traders, we make our living each and every day trying to find the best trading opportunities.  For some, daily profits are the lifeblood of their existence not just feeding the ego but also paying the rent, putting food on the table and paying the bills.  This of course is the wrong approach for anyone who really chooses this career, as the timeframe chosen is critical as is the amount of capital in reserve.  Most of us realize the best possible position is to be well-capitalized,[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | May 15, 2016, 3:54 PM

    Weekend Review - VIX Options and Futures - 5/9 - 5/13

    Weekend Review - VIX Options and Futures - 5/9 - 5/13

    After starting the week off on a bullish note, the S&P 500 finished out down just over a half a percent for the week. VIX was up just a bit more than 2%, most likely being held back by weakness that was associated with the S&P 500 moving higher on Monday and Tuesday last week. The spread between the May VIX future and spot index is pretty narrow finishing Friday at less than a point. Not only did the spread between the May futures and spot VIX index narrow, but a portion of the curve actually[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 15, 2016, 2:09 PM

    Weekend Review - Volatility Indexes and ETPs - 5/9 - 5/13

    Weekend Review - Volatility Indexes and ETPs - 5/9 - 5/13

    There was a slight twist in the VXST – VIX – VXV – VXMT curve last week as the shorter dated indexes rose and the two long dated indexes dropped slightly. Although unusual, I am not reading too much into this as the curve was already pretty steep and remains so after relatively small changes across the board last week. While updating the numbers below the first thing that stood out to me was the continued elevated level of VVIX. With VIX up a bit, but still in the 15’s[...]

  • Market News | VIX | Trader Talk | Trade Ideas | May 14, 2016, 5:14 PM

    Weekend Review - Russell 2000 Index and Volatility - 5/9 - 5/13

    Weekend Review - Russell 2000 Index and Volatility - 5/9 - 5/13

    According to some of the headlines I came across this week, stock market participants are worried about economic growth. This concern about growth showed up in the relative performance of the Russell 2000 (RUT) and Russell 1000 (RUI) this week as RUT was down twice as much as RUI (-1.10% versus -0.54%). This places RUT down a little less than 3% for the year and RUI precariously in the green by a single basis point. Concerns over growth continue to show up in the relationship between[...]

  • VIX | Education | Futures | May 13, 2016, 1:34 PM

    The Weekly Options News Roundup – 5/13/2016

    The Weekly Options News Roundup – 5/13/2016

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast, online and social media outlets. VIX FIX – Tepid Volatility For weeks, market enthusiasts have braced themselves for a resurgence in volatility that has yet to materialize. The Dow Jones is ending the week slightly lower, while the CBOE Volatility Index continued to venture lower, dropping below the 14 level mid-week, before slightly rebounding[...]

  • Technical Analysis & Charts | VIX | Trader Talk | May 10, 2016, 6:40 PM

    A Walk Through the Maze

    A Walk Through the Maze

    Let's detail a story of the last two weeks, in which I stumbled through a maze in search of the reward at the other end.  I've made some wrong turns and backtracked a few times, but I think I smell the cheese ever stronger, ever closer to me, right around the next corner. On April 28th I started with nothing but an idea, so I set it in motion as such:  With SVXY trading at $56.63 the moment I spied it, I sold ten SVXY 56 strike puts for the May 6th (six trading days away) expiration for[...]

  • Technical Analysis & Charts | VIX | Futures | Strategy | May 9, 2016, 12:21 PM

    Weekly Market Outlook - May Rally?

    Weekly Market Outlook - May Rally?

    The market may have finished last week on a bullish note, and started the week on a bullish note.  The middle of the week, however, was rough enough on stocks to leave the S&P 500 (SPX) (SPY) down 0.4% for the five-day span. On the other hand, when push came to shove at a critical line in the sand, the bulls were doing more pushing and shoving than the bears were.  Friday's gain - small as it may have been - happened in such a way and in such a place that there's a decent chance[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | May 8, 2016, 1:09 PM

    Weekend Review - Volatility Indexes and ETPs - 5/2 - 5/6

    Weekend Review - Volatility Indexes and ETPs - 5/2 - 5/6

    The S&P 500 was down 0.44% last week which places the index up only 0.65% for the year. Three out of the four S&P 500 focused volatility indexes were also lower last week, despite the drop in the S&P 500. I find the longer end of the curve holding up like it has for most of 2016 interesting as well as worrisome, at least if you are bullish on stocks. In the ETP space VXX was down by 5.11% and UVXY lost a little over twice as much at VXX. SVXY put up a decent week gaining[...]