VIX Archives - Cboe Blogs

  • Weekend Review - Russell 2000 Options and Volatility - 2/22 - 2/26

    Weekend Review - Russell 2000 Options and Volatility - 2/22 - 2/26

    Small caps played some catch up again last week with the Russell 2000 (RUT) gaining about 2.7% while the large cap oriented Russell 1000 (RUI) was up 1.75%.  There is still more work for RUT to do as it is underperforming RUI by about 3.6% in 2016. VIX made a new 2016 low last week while the CBOE Russell 2000 Volatility Index (RVX) did not.  This is surprising since small cap stocks outperformed large cap stocks last week, but I’m learning that how RVX and VIX interrelate[...]

  • Market News | VIX | Trader Talk | Education | Futures | Feb 26, 2016, 4:20 PM

    February 26, 2016 Weekly Report on CBOE VIX Index Suite

    February 26, 2016 Weekly Report on CBOE VIX Index Suite

    Foreign Exchange Volatility Remains a Hot Spot The chance of divergence between monetary policies and the impact of oil prices and China factors on international trade continues to sustain volatility in foreign exchange VIX indexes: CBOE/CME FX Euro Volatility IndexSM (Ticker: EUVIX); CBOE/CME FX Yen Volatility IndexSM (Ticker: JYVIX)  and CBOE/CME FX British Pound Volatility IndexSM (Ticker: BPVIX). In contrast, this week the CBOE VIX Index stabilized as stock markets rallied[...]

  • Technical Analysis & Charts | VIX | Futures | Strategy | Feb 26, 2016, 2:19 PM

    Weekly Stock Market Commentary 2/26/16

    Weekly Stock Market Commentary 2/26/16

    The bulls scored a major victory this week, by engineering a breakout and close above 1950 on Thursday. That completes the "W" bottoming formation. So for now, the near-term outlook is bullish. Put-call ratios remain bullish. All three of the put-call ratios gave buy signals right at the February 11th bottom -- an excellent bit of timing, especially considering that these are 21-day moving averages. Even market breadth, which has notoriously been the "weak sister"[...]

  • Market News | Technical Analysis & Charts | VIX | Strategy | Feb 26, 2016, 1:30 PM

    The Weekly Options News Roundup – 2/26/2016

    The Weekly Options News Roundup – 2/26/2016

    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. CBOE and Vest Financial Last month, CBOE made a majority equity investment in Vest Financial, an asset management firm that provides options-based services through packaged products and develops technology solutions for options-based investments. CBOE’s investment in Vest will allow for enhanced integration of CBOE’s[...]

  • Market News | VIX | Trader Talk | Futures | Feb 23, 2016, 9:17 AM

    The Iceman Selleth

    The Iceman Selleth

    Sometimes it's worth letting something simmer on the stove a while to get impressive results, or in this case it's more like letting something ferment in earthenware pots buried in a forgotten location. But the feast five months later is worth the wait and the worry! Back in September I asked an offhand question of my fellow trader, @Option_Iceman, and received no offhand reply; I quickly forgot about the matter and didn't revisit it again until an answer emerged just a few days ago. The curiosity[...]

  • VIX | Trader Talk | Education | Futures | Trade Ideas | Feb 21, 2016, 12:44 PM

    CBOE RMC - Five Things I'm Looking Forward to Next Week

    CBOE RMC - Five Things I'm Looking Forward to Next Week

    One the best parts of my job as Director of Education at The Options Institute is getting to attend each of the Risk Management Conferences offered by CBOE.  Back in the Fall the running theme at both the European and Asian versions of RMC seemed to be how the markets were shifting from a low to high volatility regime.  Early 2016 price action has confirmed this. There are five things that have me particularly excited about heading to Bonita Springs, FL next week for the 32nd Annual RMC[...]

  • VIX | Trader Talk | Education | Futures | Trade Ideas | Feb 21, 2016, 11:39 AM

    Weekend Review Volatility Indexes and ETPs - 2/16 - 2/19

    Weekend Review Volatility Indexes and ETPs - 2/16 - 2/19

    VXST dropped dramatically last week and closed on the lows of 2016.  VIX managed to hold up a little better and looking at the economic calendar for next week I can kind of see why.  VXST often leads VIX so a move below 20.00 next week may not be out of the question.  After I typed that sentence I realized we are only 0.53 away from the teens so it wasn’t the most daring of market predictions. This is the year I am going to focus more on the disconnection in performance[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Feb 20, 2016, 7:52 PM

    Weekly Review VIX Options and Futures 2/16 - 2/19

    Weekly Review VIX Options and Futures 2/16 - 2/19

    VIX managed to stay in the 20’s despite the most resilient performance from the S&P 500 in 2016.  We did finally give up on the last bastion of backwardation (month 1 versus month 2) as March became the front month with February going off the board Wednesday on the open. The generic short dated VIX curve constructed using Weeklys futures flattened and then some last week based on the drop in VIX and a fairly light economic calendar over the next couple of weeks. [...]

  • Market News | VIX | Trader Talk | Strategy | Feb 20, 2016, 7:12 PM

    Weekly Review Russell 2000 Options and Volatility 2/16 - 2/19

    Weekly Review Russell 2000 Options and Volatility 2/16 - 2/19

    Small caps had a great holiday shortened week with the Russell 2000 (RUT) rising almost 4%.  RUT also played some catch up with the Russell 1000 (RUI) as the large cap benchmark was up a little less than 3%.  However, RUT has a long way to go to catch up with RUI for 2016.  However, there’s a lot of trading left to be done for 2016. The CBOE Russell 2000 Volatility Index (RVX) and VIX both dropped dramatically last week.  However, they dropped in line with each[...]

  • Technical Analysis & Charts | VIX | Futures | Feb 19, 2016, 4:15 PM

    Weekly Stock Market Commentary 2/19/16

    Weekly Stock Market Commentary 2/19/16

    The rally has been powerful, but is it just another oversold affair? At this point, we can't really tell. The next resistance area is at 1940-1950, and that's a more crucial point. If $SPX can rise above that level, then it will have formed a "W" on its chart, and that would be quite bullish. On the other hand, if the 1950 resistance holds, or is quickly retraced, then a much more bearish scenario unfolds. Put-call ratios are very bullish. Since these are 21-day moving averages, they are[...]

  • Market News | VIX | Futures | Feb 19, 2016, 2:25 PM

    February 19, 2016 Weekly Report on CBOE VIX Index Suite

    February 19, 2016 Weekly Report on CBOE VIX Index Suite

    Ebb and Flow of Financial Signals Increase Foreign Exchange Volatility Volatility has migrated to the foreign exchange markets, especially the dollar/yen exchange rate. After a significant rally in early February, equity and interest rate volatility have subsided -- along with a slide in interest rates and despite oil-driven fluctuations in equity values. This shift is highlighted by rescaling indexes to 100 as of the start of 2016 (Figure 1). Possible factors driving the increase in foreign exchange[...]

  • VIX | Education | Futures | Feb 19, 2016, 1:35 PM

    The Weekly Options News Roundup – 2/19/2016

    The Weekly Options News Roundup – 2/19/2016

    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: Volatility Makes Itself At Home Volatility seems to have settled in to stay. Blame it on the Fed, oil prices or global economic weaknesses, market turbulence seems to have hung its coat and made itself at home.  Volatility may not be rising, but it’s definitely staying put. “Volatility Update:[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Feb 17, 2016, 3:43 PM

    VIX Front Month - Second Month Backwardation Streak Ends at 30 - So Now What???

    VIX Front Month - Second Month Backwardation Streak Ends at 30 - So Now What???

    For the first time in 2016 the front month VIX future closed at a discount to the second month.  This brings the recent streak of backwardation to an end at 30 days.  The table below shows the 10 longest first month versus second month backwardation streaks with the recent run coming in a solid fourth place. So now what?  Anyone’s guess is as good as anyone else’s, but I did some quick historical analysis.  The table below shows the 30, 90, 125, and 250[...]

  • Market News | Technical Analysis & Charts | VIX | Strategy | Feb 16, 2016, 12:21 PM

    What to do When a Stock Crashes

    What to do When a Stock Crashes

    Recently we saw some epic declines of individual stocks after posting shaky earnings reports.  Topping the list was long-time growth name LinkedIn (LNKD), the social networking giant who saw its market value nearly cut in half after reporting weak forward guidance.  Tableau Software (DATA) had it even worse, falling nearly 50% on the same day.  We also witnessed other stocks with smaller but still significant declines (Hanes Brands, HBI and Outerwall, OUTR). This big money selling[...]

  • Technical Analysis & Charts | VIX | Futures | Feb 16, 2016, 9:59 AM

    BigTrends.com Weekly Market Outlook - Time Frames, Volume, Earnings

    BigTrends.com Weekly Market Outlook - Time Frames, Volume, Earnings

    As has been the case for a while, the market threw investors another curveball last week. That is, stocks initially acted as if they were finally going to tip over the edge of the cliff, but right before they reached the point of no return they bounced back just enough to offer a glimmer of hope. As encouraging as Friday's strong bounce was (and the pre-open strength on Tuesday is), the fact of the matter is, we're technically still closer to the aforementioned breakdown than we are to a rebound. [...]