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.

  • Trader Talk | Trade Ideas | Jul 20, 2017, 3:31 PM

    What's Trading Now? EBAY Bull Put Spread Into Earnings

    What's Trading Now?  EBAY Bull Put Spread Into Earnings

    Other trades of note: Health Care Select Sector SPDR ETF (XLV) at 80.94, a Bear Put Spread traded 1,430 times. The trader bought the Sept 15th 80/74 spread paying .85. iShares MSCI EAFE ETF (EFA) at 66.77, a Bull Put Spread traded 4,684 times. The trader sold the Sept 15th 64/61 spread for a credit of .16. Energy Transfer Equity, L.P. (ETE) at 18.20, a Risk Reversal traded 2,000 times. The trader sold the Oct 20th 18 Puts and bought the Oct 20th 19 Calls collecting .46. Russell 2000 Index[...]

  • Morning Call | Jul 20, 2017, 9:05 AM

    CBOE Morning Call - 7/20/2017

    CBOE Morning Call - 7/20/2017

    Big Picture 25 of the 500 stocks in the S&P 500 report earnings today, next week we get the brunt of earnings seasons with about 25% of the stocks that have Weeklys reporting earnings.  The oil market continues to attract a lot of attention and oil futures topped $50 for the first time since early June.  USO skew appears below with risk appearing to be priced in equally on the upside and downside.    Overnight / Pre-Market The Bank of Japan left interest rates unchanged[...]

  • Morning Call | Jul 19, 2017, 7:37 AM

    CBOE Morning Call - 7/19/2017

    CBOE Morning Call - 7/19/2017

    Big Picture Earnings season continues with results being somewhat mixed so far.  The economic calendar is fairly light this week.  We do get the EIA Crude Oi stockpile change numbers at 9:30 Chicago time – expectations are for a drop of 3.214 million, last week’s number was down 7.564 million.  Tonight, the Bank of Japan will announce their interest rate decision (think FOMC in Japan) with expectations for the no change maintaining a short term policy interest rate of[...]

  • Morning Call | Jul 18, 2017, 8:17 AM

    CBOE Morning Call - 7/18/2017

    CBOE Morning Call - 7/18/2017

    Big Picture Health care reform appears to be dead in the Senate, the market has yawned probably having discounted the outcome already or possibly just not caring.  For the most part the market is focused on earnings. Volatility Index Performance The suite of volatility indexes calculated by CBOE finished last week at very low levels.  Despite this they were mixed yesterday with VXST leading to the upside.   Overnight / Pre-Market Netflix (NFLX) hit a homer after the close and the[...]

  • Morning Call | Jul 17, 2017, 8:09 AM

    CBOE Morning Call - 7/17/2017

    CBOE Morning Call - 7/17/2017

    Big Picture VIX has everyone’s attention after closing on Friday at 9.51 which is the lowest level since December 1993, but also the lowest non-holiday week close on record.  The S&P 500 finished Friday at an all time high and is now up over 10% for the year.  The CBOE Russell 2000 Volatility Index (RVX) vs. VIX ratio climbed last week as the Russell 2000 under performed the S&P 500 by about 50 bp.  This ratio is worth watching for an early indication that small cap[...]

  • Earnings | Jul 16, 2017, 7:54 PM

    Earnings Week of 7/17/2017 - 7/21/2017

    Earnings Week of 7/17/2017 - 7/21/2017

    Second quarter earnings season kicks in high gear this coming week.  As always the numbers below represent the last 12 quarters or stock price reaction to earnings announcements.  The dates and times have not been confirmed.

  • Market News | VIX | Trader Talk | Trade Ideas | Jul 16, 2017, 10:27 AM

    Weekend Review of Russell 2000 Options and Volatility - 7/10/2017 - 7/14/2017

    Weekend Review of Russell 2000 Options and Volatility - 7/10/2017 - 7/14/2017

    Stocks had a nice week with many indexes achieving all-time highs.  Small cap stocks in the form of the Russell 2000 (RUT) gained 0.92%, but this rise was outpaced by the Russell 1000 (RUI) which was up 1.4% for the week.  Lately I’ve been fixated on the relationship between the CBOE Russell 2000 Volatility Index (RVX) and VIX.  The RVX premium had been shrinking which led me to think a resurgence in relative performance for small caps was on the horizon.  This trend reversed[...]

  • VIX | Trader Talk | Trade Ideas | Jul 16, 2017, 10:24 AM

    Weekend Review of VIX Options and Futures - 7/10/2017 - 7/14/2017

    Weekend Review of VIX Options and Futures - 7/10/2017 - 7/14/2017

    VIX finished the week at the lowest close since 1993, but the two lower closes came during a holiday week so I’m considering consulting with other VIX watchers with respect to if this is basically an all-time low.  Note the dramatic move in the July contract that goes off the board on the open Monday. The most exciting activity we got from VIX came around lunchtime on Tuesday.  Many traders may have miss VIX running to the mid-11’s and the July contract trading around 12.50. [...]

  • VIX | Trader Talk | Trade Ideas | Jul 16, 2017, 8:54 AM

    Weekend Review of Volatility Indexes and ETPs - 7/10/2017 - 7/14/2017

    Weekend Review of Volatility Indexes and ETPs - 7/10/2017 - 7/14/2017

    We only have data going back to the 2007 – 2008 period for the non-VIX SPX related indexes on the diagram below.  VXST, VXV, and VXMT all made all-time lows, based on the history we have to work with, on the close Friday.  VIX closing at 9.51 was the third lowest on record.  However, the two instances of lower closing prices for VIX occurred on December 22nd and 23rd of 1993 (9.38 and 9.41).  In December 1993, the 24th was a market holiday as Christmas fell on the 25th. [...]

  • Jul 11, 2017, 2:42 PM

    What's Trading Now? Amazon on Prime Day (AMZN)

    What's Trading Now? Amazon on Prime Day (AMZN)

    Other trades of note: General Electric (GE) at 26.20, a Bull Call Spread traded 18,918 times. The trader bought the Aug 18th 27/29 spread paying 26 cents. Utilities Select Sector SPDR ETF (XLU) at 51.31, a Risk Reversal traded 10,000 times. The trader sold the Dec 15th 50 Puts and bought the Dec 15th 53 Calls for a credit of 58 cents.   Western Digital (WDC) at 91.96, a 1x2 Ratio Spread traded. The trader sold 2,500 Jul 21st 89 Calls at 4.05 and bought 5,000 Jul 21st 93 Calls for 1.82,[...]

  • 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%. [...]

  • 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. 

  • 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[...]