Rhoads-Russell

Russell Rhoads, CFA

Russell Rhoads, CFA, is Director, Product Advancement, Global Derivatives at Cboe Global Markets. His career before joining Cboe included positions at a variety of firms including Highland Capital Management, Caldwell & Orkin Investment Counsel, Balyasny Asset Management, and Millennium Management. He is a financial author and editor having contributed to multiple magazines and edited several books for Wiley publishing. He is the author of six market related books including Trading VIX Derivatives, Option Spread Trading, Trading Weekly Options, and Options Strategies for Advisors and Institutions. He authored material to be included in Level II of the CFA program and material for the CMT designation. In addition to his duties at Cboe, he is an adjunct instructor at Loyola University. He is a double graduate of the University of Memphis with a BBA ('92) and an MS ('94) in Finance and also received a Master's Certificate in Financial Engineering from the Illinois Tech in 2003. Russell is currently pursuing a PhD from Oklahoma State University with an expected graduation date in the Summer of 2018.

  • VIX | Jun 14, 2018, 1:58 PM

    VIX Index Summer Seasonality

    VIX Index Summer Seasonality

    Yesterday, I saw Andrew Thrasher on the TD Ameritrade network talking about VIX Index seasonality and the current level of the VIX Index.  That got me thinking about summertime and the VIX Index (because I think alot about the VIX Index).  It has been a while since I took a look at which months of the year tend to have higher and lower volatiltiy expectations than others.  And since I’d never looked at the summer months versus the rest of the year, I got to crunching some numbers. [...]

  • VIX | Trader Talk | Jun 6, 2018, 2:59 PM

    Bullish VIX Trades from Yesterday

    Bullish VIX Trades from Yesterday

    Yesterday VIX finished the day at 12.40 which is the lowest close since late January. The June VIX futures dropped 0.40 to 13.65 and the July contract closed at 14.50, down 0.25 on the day. With VIX at the lowest levels since before the market action in early February, we actually saw some bullish VIX spread trades come into the pit at the Cboe Options Market. Trade 1 – Fifteen minutes into the day VIX was at 12.59 and the June future at 13.90. There was a buyer of 4500 VIX Jun 14 Calls[...]

  • VIX | Apr 25, 2018, 7:30 AM

    Cboe Global Markets 45th Anniversary

    Cboe Global Markets 45th Anniversary

    Cboe Global Markets turns 45 and we thought we would provide 45 'fun facts' to mark the occasion.  1973- Cboe is founded and becomes first marketplace for trading listed options 1973- 911 options contracts traded on the first day in 1973 1973- There were only 16 stocks with options on the first day 1973- Seats at Cboe were originally offered at $10,000 1973- In 1973, the Black-Scholes model was published in the Journal of Political Economy 1974- New Cboe trading floor[...]

  • VIX | Apr 22, 2018, 8:41 AM

    Introducing the Cboe One-Year Volatility Index

    Introducing the Cboe One-Year Volatility Index

    April 2018 marks the 25th anniversary of the introduction of the Cboe Volatility Index® (VIX® Index) and during this month, information about the history of the VIX Index and the introduction of tradeable VIX products has been shared. Twenty-five years after the launch of the VIX Index (which measures 30-day expected volatility of the S&P 500 Index), Cboe introduced a new volatility index – the Cboe One-Year Volatility IndexSM (ticker: VIX1Y) – that measures that one-year[...]

  • VIX | Apr 13, 2018, 9:19 AM

    Volatility Linked ETPs Performance for 2018

    Volatility Linked ETPs Performance for 2018

    Earlier this week, ETF.COM posted an article identifying the best performing Exchange Trade Products for 2018 through April 10th.  The list is top heavy with volatility linked ETPs, including those that provide investors with long exposure to a volatility index strategy as opposed to a short strategy.  The Top 10 performers as of April 10th appear on the table below.   Source:  ETF.COM Click here to read Summit Roy’s summary of ETF / ETN performance for 2018 through[...]

  • VIX | Apr 2, 2018, 8:10 AM

    A Look Back at Volatility Across All Financial Markets

    A Look Back at Volatility Across All Financial Markets

    In what felt like the blink of an eye, the first quarter of 2018 is now behind us.  We finally got some excitement in the volatility space with VIX rising to levels not seen in a couple of years.  After the absolute dud that was 2017, as far as market volatility goes, this was a positive turn of events for those of us that had tired of talking about low volatility and how VIX was not broken, but just reflecting the market environment.  I spent last week on an actual vacation and as[...]

  • VIX | Trader Talk | Trade Ideas | Mar 17, 2018, 3:40 PM

    Weekend Review of VIX Options and Futures March 16th 2018

    Weekend Review of VIX Options and Futures March 16th 2018

    VIX gained a bit (about 8%) last week as the S&P 500 was under pressure.  The curve shifted in a pretty uniform manner with March adding just over 3% as contango was fairly steep on Friday the 9th.  As a friendly reminder, March contracts settle on the open this coming week.  Short volatility has gotten bad rap lately due to recent price action.  However, short volatility, when done in a risk controlled manner, can be a viable trading strategy all types of markets. [...]

  • Mar 17, 2018, 1:29 PM

    Weekend Review of Russell 2000 Options and Volatility - March 16th 2018

    Weekend Review of Russell 2000 Options and Volatility - March 16th 2018

    The Russell 2000 (RUT) experienced a small shining moment to celebrate the first week of March Madness.  For the first time in recent memory RUT has the year to date performance lead over the large cap focused Russell 1000 (RUI).  This lead was created by small caps holding up better than large cap stocks last week as RUT dropped 0.69% and RUI was down over 1%.  The Russell 2000 Volatility Index (RVX) versus VIX relationship spent some time in uncharted territory for a while this[...]

  • VIX | Trader Talk | Trade Ideas | Mar 11, 2018, 11:44 AM

    Weekend Review of VIX Options and Futures March 9th 2018

    Weekend Review of VIX Options and Futures March 9th 2018

    The 25% drop in VIX last week may seem extreme, but it isn’t even in the top 10 of weekly losses for VIX (it is 11th).  The all-time record was the last week in June 2016 with a 42% week over week loss.  Note the big drop in futures along with a return to contango.    And now a whale update.  Before getting into this trade here’s a little background. The first part of the story begins on Friday July 21st when a trade was initiated that sold 1 VIX Oct 12 Put for[...]

  • VIX | Trader Talk | Trade Ideas | Mar 11, 2018, 10:33 AM

    Weekend Review Russell 2000 Options and Volatility March 9th 2018

    Weekend Review Russell 2000 Options and Volatility March 9th 2018

    Stocks had a great week last week with the Russell 2000 (RUT) gaining over 4% and Russell 1000 (RUI) rising about 3.5%.  For the year RUT is up 4.01% while RUI is up 4.16%.  As you can see below small caps took the 2018 performance lead for a day last week.  The magnitude of the gain of over 4% for RUT this week is becoming commonplace.  Four of the nine weekly moves for RUT in 2018 have been outside of +/- 3% while there were no moves greater than +/-3% in 2017.  Welcome[...]

  • Cboe RMC | Mar 8, 2018, 6:32 PM

    Behavioral Finance Discussion at Cboe RMC

    Behavioral Finance Discussion at Cboe RMC

    Stacey Gilbert from Susquehanna and Ilya Feygin from WallachBeth Capital teamed up to talk about Behavioral Finance at Cboe RMC today in Bonita Springs, FL.  Stacey started out with an experiment discussing certain and probable wins and losses.  The point was to show that the expected rationality of decisions breaks down in certain situations.  She then mentions Prospect Theory which is basically the study of how people made decisions.  Specifically, she talked about loss aversion. [...]

  • Cboe RMC | Mar 8, 2018, 11:55 AM

    Louis Gave discusses China, the Dollar, and Recent Market Action at Cboe RMC

    Louis Gave discusses China, the Dollar, and Recent Market Action at Cboe RMC

    Louis-Vincent Gave from Gavekal in Hong Kong delivered a speech called Market Movers:  The Structure and the Cycle in 2018.  He starts out saying he’s often been depicted as a China perma-bull.  He notes that when considering an investment, you need to look into people’s incentives.  In China the recent party congress dictated that the focus is shifting from economic growth to being more aware of healthcare, housing, and the environmental impact of decisions. [...]

  • Cboe RMC | Mar 8, 2018, 9:51 AM

    Highlights from Fireside Chat with Cameron and Tyler Winklevoss at RMC

    Highlights from Fireside Chat with Cameron and Tyler Winklevoss at RMC

    Paul Stephens from Cboe conducted a fireside chat with Cameron and Tyler Winklevoss covering their insights into Bitcoin and Bitcoin XBT futures that were listed at the Cboe Futures Exchange in December 2017.   They started out discussing Bitcoin and blockchain technology.  They often refer to Bitcoin as Gold 2.0 and noted that the CFTC has declared bitcoin as a commodity.  Some background was given with respect to the creation of the Gemini Trust, it was noted that it took[...]

  • Cboe RMC | Mar 7, 2018, 3:02 PM

    Interpreting Volatility-Related Indicators and Determining Courses of Action at Cboe RMC

    Interpreting Volatility-Related Indicators and Determining Courses of Action at Cboe RMC

    Bill Speth from Cboe Global Markets teamed up with Mandy Xu, Chief Equity Derivatives Strategist Credit Suisse, for a session titled Interpreting Volatility-Related Indicators, and Determining Courses of Action.    Bill started out noting that the recent market activity has shown that many people understand volatility, but just as many do not understand volatility.  Cboe is taking on the task of raising the bar to try to educate more market participants on volatility and VIX. [...]

  • Bitcoin | Mar 4, 2018, 10:40 AM

    Checking in on the Bitcoin Commitment of Traders Report

    Checking in on the Bitcoin Commitment of Traders Report

    The Cboe Futures Exchange was the first exchange in the world to list bitcoin futures.  One of the great things about a new market is the data that comes along with it, at least for quant geeks like me.   The CFTC collects information about trader’s positions in a wide variety of markets.  This report is titled the Commitment of Traders Report (COT Report).  The COT reports provide a breakdown of each Tuesday’s open interest for markets in which 20 or more traders[...]