VIX Archives - CBOE Blogs

  • Market News | VIX | Aug 21, 2015, 3:16 PM

    The Weekly Options News Roundup – 8/21/2015

    The Weekly Options News Roundup – 8/21/2015

    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. Eureka!!! CBOE in collaboration with Eurekahedge has launched 4 new benchmark indexes measuring the performance of volatility-based investment strategies.  For more information on these indexes visit www.cboe.com/eurekahedge “CBOE adds hedge fund volatility benchmarks” – Alice Attwood, FOW http://bit.ly/1JanwhU “CBOE[...]

  • VIX | Trader Talk | Trade Ideas | Aug 17, 2015, 7:29 PM

    The Bull Market Lives! Long Live the Bull Market...

    The Bull Market Lives!  Long Live the Bull Market...

    ...or at least through the end of this week.  After that I'll be ready for anything else, but please - whatever is keeping volatility low - stay stable for a few more days. My escapades this month started on August 3rd, when I thought I'd draw a line in the sand for UVXY.  See chart below. UVXY was in the $25 range that day and its fraternal twin VIX was in the low 12s. I calculated that UVXY was unlikely to sink as low as $24 during the next two weeks, and wrote puts at that strike for[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Aug 16, 2015, 5:45 AM

    Last Week in Russell 2000 Trading - 8/10 - 8/14

    Last Week in Russell 2000 Trading - 8/10 - 8/14

    Large cap stocks eked out a win last week with the Russell 1000 (RUI) rising 0.69% versus a 0.48% gain for the Russell 2000 (RUT). The chart below indexes the performance for RUI and RUT to 100 at the beginning of 2015 for an apples to apples comparison. Despite RUT and RUI basically performing in line with each other, large cap risk, as indicated by index option pricing, dropped a bit relative to small cap risk. The chart below displays the percent premium of the CBOE Russell 2000 Volatility[...]

  • Market News | VIX | Trader Talk | Futures | Aug 15, 2015, 8:37 AM

    The Week in Volatility Indexes and ETPs - 8/10 - 8/14

    The Week in Volatility Indexes and ETPs - 8/10 - 8/14

    Three out of four volatility indexes calculated using S&P 500 Index options to determine a consistent measure of implied volatility were lower last week. For all of 2015 the father dated volatility indexes have been elevated relative to VXST and VIX. We are now approaching a time where the potential for a rate hike is closing in. That may be the reason VXV held up last week while the other three indexes dropped. The stock market had a rocky ride, but finished the week higher. Everyone’s[...]

  • Market News | VIX | Blogging Options | Trader Talk | Aug 14, 2015, 4:00 PM

    The Weekly Options News Roundup – 8/14/2015

    The Weekly Options News Roundup – 8/14/2015

    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. VIX Weeklys All The Buzz After the launch of VIX weekly futures contracts in July, investors won’t have long to wait until VIX Weeklys options are launched on October 8.  These contracts offer market participants a more precise hedging tool around event-driven trading. “CBOE to Launch Weekly VIX Options[...]

  • VIX | Aug 14, 2015, 2:40 PM

    TYVIX Weekly Review: Nothing Like a Yuan Devaluation to Invigorate Volatility

    TYVIX Weekly Review: Nothing Like a Yuan Devaluation to Invigorate Volatility

    After last week’s doldrums, the Chinese government’s surprise devaluation of the yuan breathed life into CBOE’s VIX Suite: VIX, TYVIX, EUVIX, BPVIX and JYVIX. Volatilities fluctuated as the events of the week unfolded – initially climbing on Tuesday when the devaluation occurred and prompted a number of analysts to suggest the Federal Reserve’s target rate increase could be deferred to next year. Volatilities in VIX and TYVIX subsided somewhat in midweek following mostly[...]

  • Market News | VIX | Trader Talk | Futures | Aug 9, 2015, 5:49 PM

    Barron's Striking Price Column Highlights VIX Weeklys

    Barron's Striking Price Column Highlights VIX Weeklys

    This past weekend Steven Sears committed the whole Striking Price column in Barron’s to VIX Weeklys. I would strongly suggest checking out the full column, as well as reading it every weekend as it is a great way to learn more about options. Some highlights include – Weekly VIX futures contracts were introduced July 23th and the options are expected to begin trading on October 8th The shorter dated VIX futures are expected (and already have been) to track spot VIX more closely[...]

  • Market News | VIX | Trader Talk | Aug 8, 2015, 2:06 PM

    The Week in Volatility Indexes and ETPs - 8/3 - 8/7

    The Week in Volatility Indexes and ETPs - 8/3 - 8/7

    The over 1% drop in the stock market did not get traders too worried as VIX remains well under 14 and the VXST – VIX – VXV – VXMT curve maintained a distinct ‘normal looking’ curve. In 30 days we will be in early September, which is a time of year that often puts traders more on edge.   VIX did rise over 10% last week in response to the S&P losing 1.25%. As of Friday VXX was about 1/3rd August VIX futures and 2/3rds September VIX. Since the August contract[...]

  • Market News | VIX | Aug 7, 2015, 2:30 PM

    The Weekly Options News Roundup – 8/7/2015

    The Weekly Options News Roundup – 8/7/2015

    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. Weeklys: A Better Hedge? After CBOE first introduced Weeklys options in 2005, their popularity as an event-driven, short-term hedge has grown steadily.  Investors now have the ability to trade Weeklys on VIX futures and, beginning in October, Weeklys on VIX options. “The Case for Shorter Expirations”[...]

  • VIX | Education | Strategy | Trade Ideas | Aug 2, 2015, 5:17 PM

    July: Tricky by Anyone's Standards

    July:  Tricky by Anyone's Standards

    Editors note – we would like to welcome Meredith Kelley Zidek as a new contributor to the CBOE Options Hub.  Meredith is a private investor whose interests include equities, options, and commodities.  She began trading equities in 2007, and since then has cultivated interests in corn, energy, and most recently, index and equity options. Almost all of her trading, which can be seen on grapestrades.blogspot.com, involves short options on volatility-related instruments.  She studies[...]

  • Market News | VIX | Trader Talk | Futures | Aug 2, 2015, 8:54 AM

    The Week in Russell 2000 Trading - 7/27 - 7/31

    The Week in Russell 2000 Trading - 7/27 - 7/31

    I was on the road for CBOE and on the other side of the world recently so I missed some of the market action of late. I knew the Russell 2000 (RUT) was lagging, but was honestly surprised to see that the small cap dominated RUT performance for 2015 is basically in line with large cap stocks which is represented by the Russell 1000 (RUI) below.  My impression was that China and Greece (storm that has passed - for the moment) were dominating the news.  However, the relative performance[...]

  • Market News | VIX | Trader Talk | Futures | Aug 1, 2015, 6:25 PM

    The Week in VIX - 7/27 - 7/31

    The Week in VIX - 7/27 - 7/31

    The S&P 500 was up over 1% and both spot VIX and VIX futures suffered the consequences.   Spot VIX lost almost 12% and the August future was down about 6% last week. VIX Weeklys futures were launched a couple of weeks ago and the first short dated contract expires this coming Wednesday on the open. I decided it was time for a quick look at how the nearest term contract has been tracking along with VIX. Day by day changes won’t tell us much so I sent my very competent summer intern[...]

  • Technical Analysis & Charts | VIX | Trader Talk | Futures | Aug 1, 2015, 10:32 AM

    The Week in Volatility Indexes and ETPs - 7/27 - 7/31

    The Week in Volatility Indexes and ETPs - 7/27 - 7/31

    I was reminded of my advancing age several times this past week. I’ll save those incidents for the other grumpy aging men on my block. One of the benefits (let me believe this) of being around for a while is having lived through a variety of market environments. This market got me thinking about John Gotti who was the boss of the Gambino family back in the day. One of his monikers was “The Teflon Don” as he was put on trial three times and acquitted three times. Teflon is a substance[...]

  • Market News | VIX | Jul 31, 2015, 3:00 PM

    The Weekly Options News Roundup – 7/31/2015

    The Weekly Options News Roundup – 7/31/2015

    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. VIX Weeklys Options Are Coming Following the successful launch of VIX Weeklys futures, CBOE has announced plans to list VIX Weeklys options beginning October 8th, offering market participants more opportunities to trade VIX.  Weeklys offer investors short-term protection, as well as the ability to fine-tune the[...]

  • Market News | VIX | Jul 24, 2015, 3:00 PM

    The Weekly Options News Roundup – 7/24/2015

    The Weekly Options News Roundup – 7/24/2015

    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. A 24/7 VIX? VIX futures are available for trading nearly 24 hours a day….is it time for the VIX Index to be calculated around the clock? “The Case for a 24-Hour VIX” – Steven M. Sears, Barron’s http://on.barrons.com/1JfHYle VIX Futures Weeklys Are Here The CBOE Futures Exchange (CFE) launched[...]