• Market News | Trader Talk | Trade Ideas | Jul 8, 2017, 10:54 AM

    Weekend Review of Russell 2000 Options and Volatility - 7/3/2017 - 7/7/2017

    Weekend Review of Russell 2000 Options and Volatility - 7/3/2017 - 7/7/2017

    Small and large cap stocks finished week in what I will call a statistical tie performance wise.  The Russell 1000 (RUI) gained 0.02% while the Russell 2000 (RUT) was up 0.03%.  If this were an election RUI supporters would be calling for a recount.  I’m pretty convinced RUT is poised for a period of catching up to RUI and I looked smart on Monday as RUT gained 0.80% to RUI’s 0.25% rise, but with an increase in market volatility RUT fell back in line with RUI. The CBOE[...]

  • VIX | Trader Talk | Trade Ideas | Jul 8, 2017, 10:50 AM

    Weekend Review of VIX Options and Futures - 7/3/2017 - 7/7/2017

    Weekend Review of VIX Options and Futures - 7/3/2017 - 7/7/2017

    One a week over week basis VIX didn’t do very much, rising 0.01.  This did occur after VIX visited the mid-12’s on Thursday.  But like all moves higher in VIX lately, it was a short-lived rally.  What is interesting below is the gain in futures.  A week ago, I was talking about how the curve was in a mini-flatting phase.  However, the futures all moved up a bit more than VIX which may be something we look back at as an early indication that the bull market was[...]

  • VIX | Trader Talk | Trade Ideas | Jul 8, 2017, 10:46 AM

    Weekend Review of Volatility Indexes and ETPs - 7/3/2017 - 7/7/2017

    Weekend Review of Volatility Indexes and ETPs - 7/3/2017 - 7/7/2017

    The short end of the SPX volatility spectrum dropped last week which following a holiday-ish weekend is a little surprising to me.  Maybe getting employment out of the way pushed VXST lower relative to the other indexes.  Also note VXV and VXMT outperformed VIX to the upside.  Take my word on this, VXV often leads VIX and is worth keeping an eye on.  The long funds had a good wee with the unleveraged funds gaining over 2% and the leverage long funds rising by almost 5%. [...]

  • Jul 7, 2017, 3:18 PM

    What's Trading? Tesla (TSLA) July Straddle

    What's Trading? Tesla (TSLA) July Straddle

    Other trades of note: Russell 2000 Index (^RUT) at 1406.22, a Bear Call Spread traded 1,284 times. The trader sold the Jul 14th 1,430/1,480 Call spread for a credit of 2.05. Chesapeake Energy Corporation (CHK) at 4.48, a Collar traded 28,000 times. The trader sold the Sept 15th 5 strike calls at 25 cents and paid 25 cents for the Sept 15th 4 strike puts. This position is tied to stock with an obligation to sell at 5.00 or the right to sell at 4.00. iShares Russell 2000 ETF (IWM) at 139.50, a Bull[...]

  • Earnings | Jul 6, 2017, 3:37 PM

    Earnings Week of 7/10/2017 - 7/14/2017

    Earnings Week of 7/10/2017 - 7/14/2017

    We are on the cusp of second quarter earnings with three big banks reporting before the open this coming Friday (C, JPM, WFC).  The numbers below represent the last three year's of stock price reactions to earnings.  Finally, the release dates and times have not been confirmed. 

  • Jul 6, 2017, 2:03 PM

    What's Trading Now?

    What's Trading Now?

    Other trades of note: VanEck Vectors Semiconductor ETF (SMH) at 82.50, a Calendar Spread traded 7,500 times. The trader sold the Jul 21st 80 strike puts and bought the Aug 18th 80 strike puts paying 1.15. PowerShares QQQ ETF (QQQ) at 136.22, a Short Strangle traded 5,000 times. The trader sold the Jul 21st 140 strike calls and the Jul 21st 132.50 strike puts for 1.21.   SPDR Gold Trust ETF (GLD) at 116.36, a Bull Call Spread traded 10,000 times. The trader bought the Sept 15th 120/125 Call spread[...]

  • Jul 3, 2017, 10:17 AM

    Predicting Market Tops and Bottoms is a Loser's Game

    Predicting Market Tops and Bottoms is a Loser's Game

    As the markets continue to move higher amid low volatility, we hear the constant chatter of market tops.  Naturally, these predictions rarely come with any date applied, setting up these foolish prognostications to be right 'at some point in the future', just like how a broken clock is right twice a day.  For investors, these predictions of impending loss and perhaps doom are useless and random, not based in fact or reason.  They are attention grabbers in the media, because they[...]

  • VIX | Trader Talk | Trade Ideas | Jul 2, 2017, 4:01 PM

    Weekend Review of Volatility Indexes and ETPs - 6/26/2017 - 6/30/2017

    Weekend Review of Volatility Indexes and ETPs - 6/26/2017 - 6/30/2017

    I’ve been traveling like a madman on behalf of CBOE in June.  I try my best to keep up with the markets when I’m out and about, but sometimes the catch up occurs outside of real time.  This weekend is one of those catch up weekends.  I was aware of the VIX move over 15.00 (who wasn’t?) and that VIX was a bit higher than it had been for most of 2017 to finish the week.  What surprised me was the level of VXST on Friday. VXST is a measure of 9-day volatility expectations[...]

  • VIX | Trader Talk | Trade Ideas | Jul 2, 2017, 11:57 AM

    Weekend Review of VIX Futures and Options - 6/26/2017 - 6/30/2017

    Weekend Review of VIX Futures and Options - 6/26/2017 - 6/30/2017

    VIX had quite a midweek move rising above 15.00 for a very short period of time before settling at 11.18 to end the week.  Note the VIX action didn’t have much of an impact on the futures contracts which can be attributed to the steep nature of the curve going into last week.  I spoke about the following trade on the Vol Views podcast this past Friday.  However, it was such a great use of VIX Weeklys that I wanted to repeat the trade here.  On Monday last week, with VIX[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jul 2, 2017, 11:14 AM

    Weekend Review of Russell 2000 Options and Volatility - 6/26/2017 - 6/30/2017

    Weekend Review of Russell 2000 Options and Volatility - 6/26/2017 - 6/30/2017

    Small caps in the form of the Russell 2000 (RUT) were up slightly last week while the Russell 1000 (RUI) was down slightly.  Friday marked the end of the second quarter.  Both RUT and RUI were higher for the second quarter with RUT gaining 2.12% while the large cap focused RUI was 2.55% higher.  We all know RUT had stellar performance from election day to the end of 2016 on both and absolute and relative basis when compared to RUI.  However, RUT has consistently underperformed[...]

  • Jun 30, 2017, 1:54 PM

    PUT Index and PUTW ETF Win Sharpe Indexing Award

    PUT Index and PUTW ETF Win Sharpe Indexing Award

    PUT Index and PUTW ETF Win Sharpe Indexing Award By Matt Moran On June 26 the CBOE S&P 500 PutWrite Index (PUT) and the WisdomTree CBOE S&P 500 PutWrite Strategy Fund ETF (PUTW) won the 2017 Index/ETF Product of the Year award at an annual ceremony that was presented by IMN and the Journal of Index Investing. The awards ceremony was held during the 22nd Annual Global Indexing and ETFs conference, a 3-day event with about 750 financial professionals (including reps of CBOE, Bats, and ETF.com)[...]

  • Jun 27, 2017, 3:54 PM

    What's Trading - PAA OTM Put Spread

    What's Trading - PAA OTM Put Spread

    CBOE Options Institute Instructor, Roma discusses Plains All-American Pipeline (PAA) amid Energy market turbulence. http://bit.ly/2tltQpN Other trades of note: iShares China Large-Cap ETF (FXI) at 40.09 a Long Straddle traded 5,000 times. The trader bought the Jul 21st 40 strike calls and the Jul 21st 40 strike puts for 1.19. Utilities Select Sector SPDR ETF (XLU) at 53.36 a Long Strangle traded 2,000 times. The trader bought the Aug 18th 54 strike calls and the Aug 18th 53 strike puts for 1.29.[...]

  • Jun 25, 2017, 4:30 PM

    The Weekly Options News Roundup – 6/25/2017

    The Weekly Options News Roundup – 6/25/2017

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX Index and volatility-related articles from print, broadcast, online and social media outlets.      MXEF Options Manage Global Equity Exposure On Tuesday, MSCI Inc. announced that beginning June 2018, it will include China A -Shares in the MSCI Emerging Markets Index (MXEF). CBOE offers options on the MXEF Index for investors who wish to manage global equity exposure. Cash-settled MXEF options[...]

  • VIX | Trader Talk | Trade Ideas | Jun 25, 2017, 9:00 AM

    Weekend Review of Volatility Indexes and ETPs - 6/19/2017 - 6/23/2017

    Weekend Review of Volatility Indexes and ETPs - 6/19/2017 - 6/23/2017

    VXST was slightly higher while the rest of the SPX related volatility indexes dropped last week.  All moves were relatively small as we have truly entered the summer doldrums, at least for broad based index volatility. There’s very little exciting on the table below.  TYVIX bumped up slightly, but is still at very low levels.  VVIX remaining over 80.00 is interesting as traders may continue to take advantage low VIX to get long volatility exposure through buying calls or spreads[...]

  • VIX | Trader Talk | Trade Ideas | Jun 24, 2017, 7:13 PM

    Weekend Review of VIX Futures and Options - 6/19/2017 - 6/23/2017

    Weekend Review of VIX Futures and Options - 6/19/2017 - 6/23/2017

    VIX was a bit lower to end the week and the curve moved down as well.   We retired June last week and now July is the front month and is at a premium of just over 1.80 to finish the week.  Before getting into a trade I would like to point out some heavy activity that abounded last week in the VIX Weekly options expiring this coming week.  There was a pretty big buyer of the VIX Jun 28th 19, 20, and 21 Calls paying 0.10 for the 19’s and 0.05 for both the 20’s and[...]

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