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 | 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[...]

  • 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[...]

  • VIX | Trader Talk | Trade Ideas | Jun 24, 2017, 6:55 PM

    Weekend Review of Russell 2000 Options and Volatility - 6/19/2017 - 6/23/2017

    Weekend Review of Russell 2000 Options and Volatility - 6/19/2017 - 6/23/2017

    The Russell 2000 (RUT) was up by 0.57% last week while the large cap focused Russell 1000 (RUI) gained only 0.23%.  For the year RUT is now up 4.25% while RUI has gained 8.84% as large cap stocks continue to dominate 2017 after the huge outperformance of small cap stocks from election day to the end of 2016.  On Monday RVX closed below 14.00 for the first time in years.  Finishing the day at 13.89 was also a 2017 low for RVX (kind of makes sense if we haven't been below 14.00 for[...]

  • Trader Talk | Jun 21, 2017, 12:57 PM

    Sixth Annual CBOE RMC Europe Set for London in September

    Sixth Annual CBOE RMC Europe Set for London in September

    Today may be the longest day of the year, but I’m already looking forward to a post-Labor Day event, specifically the 6th Annual European version of CBOE’s Risk Management Conference which will be held September 11th through 13th.   This year we will be visiting a new location just outside London, The Grove Hotel which appears to be an ideal setting for discussing all things derivatives and volatility.  Day one kicks off with a discussion titled New Developments in Options[...]

  • Trader Talk | What's Trading | Jun 19, 2017, 3:44 PM

    What's Trading Today? FB Bull Put Spread...

    What's Trading Today?  FB Bull Put Spread...

    Facebook Bull Put Spread With FB trading at 151.95 someone sold 200 FB Jun 30th 152.50 Puts for 2.44 and bought the FB Jun 30th 146.00 Puts for 0.60 and a net credit of 1.84.  A quick summary appears in the video below. At expiration the net result with FB above 152.50 would be a profit of 1.84, equal to the credit taken in on the trade.  The worst case scenario is a loss of 4.66 and this trade has a break-even of 150.66.    Other trades of note: With Bank of America (BAC)[...]

  • Market News | Trader Talk | Jun 19, 2017, 10:03 AM

    FTSE Russell Reconstitution Completed this Friday

    FTSE Russell Reconstitution Completed this Friday

    This is a big week for the FTSE Russell suite of indexes.  On Friday, a large number of indexes will undergo what is referred to as the annual reconstitution.  Specifically, the final phase of this process will occur on the market close Friday as stocks move into or out of indexes.  The index we care most about at CBOE is the Russell 2000 which is the standard benchmark index for small cap managers in the US.  Also, RUT options are the 3rd most actively traded broad based index[...]

  • VIX | Trader Talk | Trade Ideas | Jun 17, 2017, 2:09 PM

    Weekend Review of VIX Futures and Options - 6/12/2017 - 6/16/2017

    Weekend Review of VIX Futures and Options - 6/12/2017 - 6/16/2017

    VIX gave volatility bulls a little hope on Monday rising to the highest intra-day level since VIX was receding from the news flow that followed the firing of Comey by Donald Trump in the middle of May.  However, as is the norm, VIX dropped and worked lower with the curve following in suit. As Monday was the only day of real strength for VIX and the June VIX futures.  One trader took advantage of that by selling an out of the money call spread.  Late Monday as VIX was near 11.65 and[...]

  • VIX | Trader Talk | Trade Ideas | Jun 17, 2017, 2:01 PM

    Weekend Review of Volatility Indexes and ETPs - 6/12/2017 - 6/16/2017

    Weekend Review of Volatility Indexes and ETPs - 6/12/2017 - 6/16/2017

    As the week came to a close VXST which measures 9-day volatility expectations took a dive.  Hence the big drop on the left side of the VXST – VIX – VXV – VXMT diagram below.  TYVIX finished the week below 4.00 which was a first for 2017, but not outside of the long term historical range.  I checked the market expectations for the next FOMC meeting in late July and right now we have a 100% chance of nothing happening.  That much certainty probably justifies[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | Jun 17, 2017, 1:56 PM

    Weekend Review of Russell 2000 Options and Volatility - 6/12/2017 - 6/16/2017

    Weekend Review of Russell 2000 Options and Volatility - 6/12/2017 - 6/16/2017

    Small cap stocks lost some of the recently gained ground relative to large cap stocks last week.   The Russell 2000 (RUT) was down over 1% while the large cap focused Russell 1000 (RUI) was up slightly.  The spread of RUI to RUT out performance for 2017 has now widened to almost 5%. Despite the tough week for small cap stocks the CBOE Russell 2000 Volatility Index (RVX) finished Friday at a 2017 low.  This lower relative level for RVX pushed the RVX to VIX ratio to the lowest[...]

  • VIX | Trader Talk | Trade Ideas | Jun 10, 2017, 6:44 PM

    Weekend Review of VIX Options and Futures - 6/5/2017 - 6/9/2017

    Weekend Review of VIX Options and Futures - 6/5/2017 - 6/9/2017

    VIX was higher by about 10% last week, but that did not have much of an impact on the rest of the term structure.  The futures were mixed which can be attributed to just how steep the VIX curve was going into the week.  Before things turned to the upside on Friday we experienced the lowest level for VIX since 1993.  The table below ranks the lowest inter-day lows for VIX since 1990.  Note Friday ranks 6th and 4 of the 10 on the list occurred this year.  A couple of bullish[...]

  • VIX | Trader Talk | Trade Ideas | Jun 10, 2017, 6:39 PM

    Weekend Review of Volatility Indexes and ETPs - 6/5/2017 - 6/9/2017

    Weekend Review of Volatility Indexes and ETPs - 6/5/2017 - 6/9/2017

    That little bump in VXST that shows up on the far left side of the diagram below can be attributed to Friday afternoon activity.  VXST rose 0.75 Friday while VIX was up 0.54.  Shorter dated SPX option pricing is used to calculate VXST than VIX.  It may be the weakness Friday afternoon in large cap tech stocks may have traders worrying about the direction of the stock market over the short term.  Several things pop out at me on the table below.  VMAX had a nice week rising[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Jun 10, 2017, 6:31 PM

    Weekend Review of Russell 2000 Options and Volatility - 6/5/2017 - 6/9/2017

    Weekend Review of Russell 2000 Options and Volatility - 6/5/2017 - 6/9/2017

    Small cap stocks prevailed last week as the Russell 2000 (RUT) gained over 1% while the Russell 1000 (RUI) was lower by about 1/3 of 1%.  Large cap stocks still hold a lead over small caps in 2017, but the Russell 2000 has kept pace with the Russell 1000 since the end of the first quarter so all the large cap outperformance may be attributed to the first three months of 2017.  On the volatility front VIX and the CBOE Russell 2000 Volatility Index (RVX) rose last week, with the relative[...]

  • Market News | Trader Talk | Trade Ideas | Jun 4, 2017, 12:57 PM

    Weekend Review of Russell 2000 Options and Volatility - 5/30/2017 - 6/2/2017

    Weekend Review of Russell 2000 Options and Volatility - 5/30/2017 - 6/2/2017

    Small caps had a nice week with the Russell 2000 (RUT) rising 1.67% while the Russell 1000 (RUI) was up 1.01%.  The large cap lead narrowed a bit, but the RUT still lags RUI by just over 5% year to date.  Continued low levels for VIX dominate the CBOE Russell 2000 (RVX) to VIX ratio which remains at historically high levels.  VIX under 10.00 and RVX over 15.00 results in a ratio in the mid- 50% range to end the week.   Mid-day Wednesday, with RUT around 1360 a bullish trade[...]