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.

  • Market News | VIX | Trader Talk | Trade Ideas | Sep 10, 2016, 2:17 PM

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

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

    VXST more than doubled as a function of the index being depressed in front of the three-day weekend and then in reaction to Friday’s SPX sell off.  As would be expected, the rest of the VXST-VIX-VXV-VXMT curve moved higher as well, but outside of VXST relative to VIX we are still in a state of contango. The 2.39% drop in the S&P 500 all came from Friday’s price action as did just about everything else on the table below.  Note that VXX rose 11% and UVXY gained[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Sep 10, 2016, 9:30 AM

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

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

    The streak of SPX doldrums came to an end on Friday with the orderly drop of over 50 points for which resulted in VIX rising to 17.50.  Everything worth noting happened on Friday which may have added to the angst that resulted in the S&P 500 closing near the daily lows and VIX closing near the daily highs. Early Friday when VIX was at 13.93 and the big move was just getting started there was a split strike trade that came into the pit.  With the October future at 16.35[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Sep 5, 2016, 8:40 AM

    Weekend Review - Russell 2000 Options and Volatility - 8/29 - 9/2

    Weekend Review - Russell 2000 Options and Volatility - 8/29 - 9/2

    I went to the horse track for the first time in about a decade just before writing this blog.  In one race, a horse (not mine of course) steadily pulled away into the finish of a race.  That’s sort of what is happening with the Russell 2000 (RUT) performance relative to the large cap focused Russell 1000 (RUI). RUT gained almost twice as much at RUI last week (1.19% versus 0.62%).  This places RUT up 10.21% for 2016 and RUI up only 6.81%. VIX finished the week under[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Sep 4, 2016, 11:40 AM

    Weekend Review - Volatility Indexes and ETPs - 8/29 - 9/2

    Weekend Review - Volatility Indexes and ETPs - 8/29 - 9/2

    The VXST – VIX – VXV – VXMT curve does what it normally does on a pre three-day weekend week and got steeper.  It’s been a while since I ran the numbers but I’m fairly certain VXST almost always drops before a holiday weekend and then rebounds when we all return to work refreshed and ready to trade. SKEW below 130 was the first thing that stood out to me on the table below.  A quick check and I saw that it had been consistently higher than 130[...]

  • VIX | Trader Talk | Trade Ideas | Sep 3, 2016, 10:31 AM

    Weekend Review - VIX Futures and Options - 8/29 - 9/2

    Weekend Review - VIX Futures and Options - 8/29 - 9/2

    VIX finished the week just under 12.  We can attribute this to a combination of the equity market being pleased by Friday’s August Non-Farm Payroll report along with the three-day weekend effect.  Note the September futures, which settle on the 21st moved lower, but held up a bit relative to spot VIX.  This is common regardless of the directional move out of the index, but is accentuated whenever we have a long weekend. Despite there only being one trading day (and[...]

  • Market News | Trader Talk | Trade Ideas | Aug 31, 2016, 6:57 PM

    Earnings Next Week - 9/6 - 9/9

    Earnings Next Week - 9/6 - 9/9

    Due to the short week we only have three stocks with Weeklys available for trading reporting earnings.  As always the data below is based on the last three years of earnings results unless the ticker is in italics.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.

  • Market News | Trader Talk | Trade Ideas | Aug 29, 2016, 4:55 PM

    Trade Analysis - Short Term Bullish Spread With SPX Monday Weeklys

    Trade Analysis - Short Term Bullish Spread With SPX Monday Weeklys

    On Friday I received an email from a student who had recently attended one of the CBOE Options Institute courses.  They (I’m gender neutral to protect their identity) wanted to let me know that they had made the jump into SPX Monday Weeklys.  With the S&P 500 at 2166 they expressed a bullish outlook with respect to the stock market through initiating a bull call spread.   The specific trade involved buying the SPX Aug 29th 2160 Call for 10.80 and selling the SPX[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Aug 28, 2016, 12:24 PM

    Weekend Review - VIX Futures and Options - 8/22 - 8/26

    Weekend Review - VIX Futures and Options - 8/22 - 8/26

    VIX rose a whopping 20% last week, although that is a jump off a pretty low base.  This was in response to the S&P 500 dropping only 0.68%.  Note the curve didn’t replicate the VIX move since the futures were already discounting higher volatility.  Stated another way, the steep contango dissipated a bit as spot VIX narrowed the spread with the nearer dated futures. At least one trader appears to be expecting a further run in VIX over the next few weeks. [...]

  • Market News | VIX | Trader Talk | Trade Ideas | Aug 27, 2016, 7:30 PM

    Weekend Review - Volatility Indexes and ETPs - 8/22 - 8/26

    Weekend Review - Volatility Indexes and ETPs - 8/22 - 8/26

    The short end of the VXST – VIX – VXV – VXMT curve rose last week as volatility moved higher in reaction to comments coming from the annual get together in Jackson Hole.  The result is a bit less steepness in a curve that has been pretty darn steep the past few weeks. The long volatility funds got a small reprieve from the severe downtrend in performance that has been in place since the first quarter. SVXY gave up some performance last week and VXX along with[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Aug 27, 2016, 4:25 PM

    Weekend Review - Russell 2000 Options and Volatility - 8/22 - 8/26

    Weekend Review - Russell 2000 Options and Volatility - 8/22 - 8/26

    The Russell 2000 (RUT) widened the 2016 performance lead on the Russell 1000 (RUI) last week.  RUT rose 0.11% while RUI was down 0.67%.  For the year RUT is up 8.99% while RUI is up around 6.17%.  What is sort of missed is the relative performance since February’s lows.  RUT has gained 29.8% while RUI is up only 19.5% since the market bottomed earlier this year. Expected volatility rose last week but the gap between the CBOE Russell 2000 Volatility Index (RVX)[...]

  • Market News | Trader Talk | Trade Ideas | Aug 25, 2016, 7:51 PM

    Earnings Next Week - 8/29 - 9/2

    Earnings Next Week - 8/29 - 9/2

    Next week we have a small list, but it's an interesting one as several of the companies reporting have recently had a big move or just regularly experience a lot of volatility around earnings.  As always the data below is based on the last three years of earnings results unless the ticker is in italics.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.  

  • Market News | VIX | Trader Talk | Trade Ideas | Aug 20, 2016, 7:42 PM

    Weekend Review - VIX Futures and Options - 8/15 - 8/19

    Weekend Review - VIX Futures and Options - 8/15 - 8/19

    VIX dropped a little as the equity market did a whole lot of nothing last week.  We retired the August contract on the open Wednesday morning and September took over as the front month.  With time to go to expiration (this is actually a five-week cycle) everyone seemed to notice the steep contango again.  What is interesting below is the behavior of the curve beyond October.  November and beyond gained a little ground despite all the contracts moving up in the pecking order of[...]

  • Market News | Trader Talk | Strategy | Trade Ideas | Aug 20, 2016, 2:00 PM

    Weekend Review - Volatility Indexes and ETPs - 8/15 - 8/19

    Weekend Review - Volatility Indexes and ETPs - 8/15 - 8/19

    For the second week in a row the S&P 500 Index related volatility indexes hardly budged. Three out of four were lower with the longest dated, VXMT, up slightly on the week. We’ve ranted and raved in various forums about how VVIX has been holding up despite a lower VIX. It was kind of like the last holdout for higher equity market related volatility until this past week when it took a 12% dive.  This puts VVIX closer to the lower end of the historical range. I guess[...]

  • Market News | Trader Talk | Strategy | Trade Ideas | Aug 20, 2016, 10:09 AM

    Weekend Review - Russell 2000 Options and Volatility - 8/15 - 8/19

    Weekend Review - Russell 2000 Options and Volatility - 8/15 - 8/19

    Sometimes I over personify the financial markets and when I saw that the Russell 2000 (RUT) easily extended the lead over the Russell 1000 (RUI) this week an Olympic themed situation popped into my head.  I saw the Russell 2000 as Usain Bolt giving a thumbs up as it easily moved farther ahead of the Russell 1000.  For the week RUT gained 0.60% while RUI was actually down by 0.01% which places the 2016 lead for RUT at just over 2% (8.88% vs. 6.86%). When VIX is low the ratio[...]

  • Market News | Trader Talk | Trade Ideas | Aug 18, 2016, 1:27 PM

    Earnings Next Week - Aug 22 - Aug 26

    Earnings Next Week - Aug 22 - Aug 26

    There are just enough names to make things interesting next week.  As always the data below is based on the last three years of earnings results unless the ticker is in italics.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.