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.

  • Earnings | Jul 27, 2017, 12:20 PM

    Earnings Week of July 31 to August 4

    Earnings Week of July 31 to August 4

    The biggest week for 2Q earnings is upon us.  As always the numbers below represent the last 12 quarters of one day stock price reaction to earnings. 

  • Morning Call | Jul 27, 2017, 6:28 AM

    CBOE Morning Call 7/27/2017

    CBOE Morning Call 7/27/2017

    Big Picture The FOMC didn’t offer up any surprises yesterday afternoon and the stock market reacted with a giant yawn.  VIX finally put in a new all-time intraday low hitting 8.84 as the FOMC announcement was just about to hit the tape.  Before the day was done VIX had worked its way up to 9.60.  The odds of a rate hike in December still remains at about 50%, but I’m taking the no hike side of that bet.  It will take very little in the form of negative news for the[...]

  • Morning Call | Jul 26, 2017, 6:58 AM

    CBOE Morning Call 7/26/2017

    CBOE Morning Call 7/26/2017

    Big Picture Today there will be lots of talk about the FOMC, but the chances of anything truly unexpected coming this afternoon are very low.  This week, I have heard about a dozen people state that when we get an FOMC announcement the stock market goes up.  I was wondering if part of yesterday’s strength could be attributed to that mindset.  Remember when everyone is like minded, it may be time to go the other way.  We are beginning to hear grumblings of who may be appointed[...]

  • Jul 25, 2017, 4:18 PM

    We Know VIX is Low - The Why and What May Be Next

    We Know VIX is Low - The Why and What May Be Next

    Regardless of how you state it, VIX is low.  Today VIX got as low as 9.04 which is the second lowest intraday low on record.  The lowest print for VIX came on December 27, 1993 with a low of 8.89.  I could waste a thousand more words describing how low VIX is relative to history, but instead of doing that I’d like to dive a bit into what it means.  VIX is low, but market volatility is low as well.  What I mean by that is the realized volatility of the S&P 500 is[...]

  • Morning Call | Jul 25, 2017, 6:57 AM

    CBOE Morning Call - 7/25/2017

    CBOE Morning Call - 7/25/2017

    Big Picture Today is the first day of a two-day FOMC meeting.  As a gentle reminder, there are S&P 500 (SPX) options expiring on the close tomorrow which are perfect for expressing an opinion about the potential market reaction (or lack thereof) to the FOMC announcement tomorrow afternoon.  Also, the earnings calendar is so heavy for the next three days it should be on a weight loss reality show. Overnight / Pre-Market Japanese stocks were slightly lower overnight.  Both the EuroStoxx[...]

  • What's Trading | Jul 24, 2017, 2:44 PM

    What's Trading Today - MCD and More

    What's Trading Today - MCD and More

    Other trades of note by Lauren Ravalli Facebook, Inc. (FB) at 165.29, a Bear Call Spread traded 9,200 times. The trader sold the Jul 28th 170/177.5 spread for a credit of 1.40. FB is expected to report earnings on Wednesday, July 26th after market close. Russell 2000 Index (RUT) at 1,431.93, a Bull Put Spread traded 1,402 times. The trader sold the Aug 18th 1,280/1,250 spread for a credit of .30. Starbucks Corporation (SBUX) at 58.18 a Long Straddle traded 1,000 times. The trader bought[...]

  • Morning Call | Jul 24, 2017, 7:28 AM

    CBOE Morning Call - 7/24/2017

    CBOE Morning Call - 7/24/2017

    Big Picture VIX finished the week last week just above the all-time low.  There was a very large VIX spread trade using October options on Friday.  More about that trade appeared in the VIX Weekend Review - Weekend Review of VIX Options and Futures 7/17/2017 - 7/21/2017 It is a huge week for earnings, over seventy companies with Weeklys available for trading report earnings.  More about that below.  Also, Wednesday we get the release of information that will follow a two day[...]

  • VIX | Trader Talk | Trade Ideas | Jul 22, 2017, 3:10 PM

    Weekend Review of Volatility Indexes and ETPs - 07/17/2017 - 7/21/2017

    Weekend Review of Volatility Indexes and ETPs - 07/17/2017 - 7/21/2017

    VIX finished the week just off all-time lows and the VXST - VIX - VXV - VXMT curve shifted lower.  This is a result of realized volatility for S&P 500 price action remaining low and there not appearing to be any speed bumps on the horizon for the financial markets.  VVIX dipped below 80.00 to finish the week and TYVIX is near all-time lows despite there being an FOMC meeting this Wednesday.  The long funds continue to suffer (discussed a little more shortly) and the short funds[...]

  • Market News | Trader Talk | Trade Ideas | Jul 22, 2017, 3:01 PM

    Weekend Review of Russell 2000 Options and Volatility - 7/17/2017 - 7/21/2017

    Weekend Review of Russell 2000 Options and Volatility - 7/17/2017 - 7/21/2017

    Small and large cap index finished the week in what I will call a statistical tie up about 0.5%.  For the year the Russell 1000 (RUI) is now up over 10% while the Russell 2000 has gained a respectable 5.8% in 2017.  We are early in the 3rd quarter of the year, but so far RUI is up 1.98% versus RUT 1.45%.  With VIX so low the CBOE Russell 2000 Volatility (RVX) premium to VIX has popped up a bit.  I’m attributing more to low VIX than high small cap volatility.  It[...]

  • VIX | Trader Talk | Trade Ideas | Jul 21, 2017, 6:54 PM

    Weekend Review of VIX Futures and Options - 7/17/2017 - 7/21/2017

    Weekend Review of VIX Futures and Options - 7/17/2017 - 7/21/2017

    VIX closed Friday a tad shy of an all-time low while the S&P 500 continues to push higher having gained just over ½ a percent last week.  The curve below does appear steep, but the context of VIX being so low should be taken into account. One trader came into the VIX pit mid-day on Friday with what could be considered a massive trade.  With VIX at 9.76 and the standard October contract at 13.70 someone came in with a three-leg bullish trade on VIX.  They sold 262,441 VIX[...]

  • Morning Call | Jul 21, 2017, 8:13 AM

    CBOE Morning Call - 7/21/2017

    CBOE Morning Call - 7/21/2017

    Big Picture Two big themes to watch going into next week.  We get the brunt of 2Q 2017 earnings reports next week which creates some trading opportunities (for the short-term people here) and also gives us some insight into what companies think about the second half of this year (for those of us in the long game).  Also, we do get an FOMC announcement on Wednesday.  The fixed income futures market is pricing in a 96.9% chance that rates remain unchanged and the odds of a December[...]

  • Earnings | Jul 21, 2017, 8:07 AM

    Earnings Week of 7/24/2017 - 7/28/2017

    Earnings Week of 7/24/2017 - 7/28/2017

    Long long long long long list of companies with Weeklys reporting next week.  None of the times are confirmed so double check and the numbers below represent the last three years of stock price reactions to earnings.

  • 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[...]

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