• Market News | Apr 22, 2016, 2:43 PM

    Earnings Next Week - 4/25 - 4/29

    Earnings Next Week - 4/25 - 4/29

    The bulk of earnings season kicks in next week.  With a couple of exceptions (TWTR and PYPL) the numbers below represent 3 years of earnings history.

  • Market News | Education | Apr 22, 2016, 1:49 PM

    The Weekly Options News Roundup – 4/22/2016

    The Weekly Options News Roundup – 4/22/2016

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast, online and social media outlets. Stellar Connections Yesterday, CBOE Futures Exchange (CFE) announced that Stellar Trading Systems, a multi-asset trading software and services specialist, has established connectivity with  CFE.  This new link extends the exchange’s global footprint, broadening its reach with European and Asian investors. [...]

  • Market News | Education | Futures | Apr 20, 2016, 10:29 AM

    Continued Use of Listed Options Is Permitted by Final DOL Fiduciary Rules

    Continued Use of Listed Options Is Permitted by Final DOL Fiduciary Rules

    Here is an update on the status of fiduciary rules recently finalized by the Department of Labor (DOL).  PROPOSED DOL REGS IN APRIL 2015 The DOL proposed on April 14, 2015 sweeping new regulations governing retirement accounts and IRAs which would exclude listed options and futures as permissible investments. FINAL DOL REGS IN APRIL 2016 On April 6, 2016, the DOL released its final Conflict of Interest Rule and related exemptions, which are available at http://www.dol.gov/ebsa/regs/conflictsofinterest.html. The[...]

  • Market News | Apr 19, 2016, 3:57 PM

    Thinking broadly about emerging markets

    Thinking broadly about emerging markets

    Apr 19, 2016  |  Raman Aylur Subramanian, Equity Applied Research, MSCI Emerging-market equities revived in the first quarter after a rather dismal performance over the past five years. The pickup has left investors to wonder whether the gains might continue and to think anew about how to approach the segment. A pickup in the performance of emerging markets Economic development and the interconnectedness of financial markets have redefined the characteristics of emerging markets to such[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | Apr 19, 2016, 12:55 PM

    Huge 1 x 2 VIX Call Spread Rolled Today

    Huge 1 x 2 VIX Call Spread Rolled Today

    Things are relatively quiet today with the S&P 500 topping 2100 for the first time in months and then losing its grip on that round number. However, despite the relative quiet a big trade hit the VIX pit just before lunch time that has traders talking. There were four legs to the trade, which turned out to be a large volatility player rolling a position from May to July. I have no idea what they have against June. A May spread was exited – Sell 82,129 VIX May 23 Calls at 0.43 + Buy 164,242[...]

  • Market News | Technical Analysis & Charts | VIX | Trader Talk | Apr 18, 2016, 11:52 AM

    Checking in on Overnight VIX Action

    Checking in on Overnight VIX Action

    Last Friday CBOE began disseminating spot VIX quotes during what we lovingly call the Extended Hours Session (ETH). The first quote for VIX on April 15th occurred at 2:15 am Chicago time. I was elsewhere Friday but I did check the data periodically and everything seemed to be running smoothly. I’m back at work today so I decided to take a look at how VIX did relative to the S&P 500 futures market from 2:15 am to 8:15 am Chicago time, looking at the price every 5 minutes. At 8:15 am the[...]

  • Weekend Review - Volatility Indexes and ETPs - 4/11 - 4/15

    Weekend Review - Volatility Indexes and ETPs - 4/11 - 4/15

    The S&P 500 was up by 1.62% last week and the VXST – VIX – VXV – VXMT curve reacted accordingly shifting lower in a fairly parallel fashion. The steepness has me concerned about the second half of this year, but for now things look just peachy. Note on the table below that despite (or maybe because of) the drop in VIX, VVIX rose a tad. It could be traders used to the weakness in VIX and related futures to get long volatility through VIX calls. It is a bit surprising[...]

  • Market News | Apr 17, 2016, 5:49 PM

    Weekend Review - VIX Options and Futures - 4/11 - 4/15

    Weekend Review - VIX Options and Futures - 4/11 - 4/15

    VIX fell to 13.62 as the S&P 500 put up some gains last week. The curve shifted lower, but is steep, even the expiring April contract finished the week at about a 1.50 premium to spot VIX.   I noticed that the S&P 500 was higher than the close two weeks ago and VIX was higher as well. This is something many traders take a look at and may consider it a non-confirmation of the recent rally. Let’s see this coming week if the 13.00 low in VIX for 2016 holds on any equity[...]

  • Weekend Review - Russell 2000 Options and Volatility - 4/11 - 4/15

    Weekend Review - Russell 2000 Options and Volatility - 4/11 - 4/15

    One of my favorite books when I was a wee lad was “The Little Engine That Could”. When I see the Russell 2000 (RUT) coming very close to going from red to green on the year that story pops in my mind as I personify RUT saying, “I think I can” with the small cap benchmark approaching unchanged on the year. Last week RUT was up by 3% which places the index just 44 basis points in the red for 2016. Pretty impressive for an index that was down as much as 16% on the year.[...]

  • Market News | Apr 15, 2016, 4:58 PM

    The Weekly Options News Roundup – 4/15/2016

    The Weekly Options News Roundup – 4/15/2016

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast, online and social media outlets. Target-Outome Investing. The Next Wave in Options Investing? On Wednesday, CBOE announced that it has created a series of 13 “Buffer Protect Indexes,” the first in planned family of options-based strategy performance benchmarks that are designed to target the outcomes of specific investment strategies. The[...]

  • Market News | Apr 15, 2016, 4:19 PM

    Earnings Next Week - 4/18 - 4/22

    Earnings Next Week - 4/18 - 4/22

    Earnings “season” kicks into full gear next week with reports from IBM, NFLX, GS, JNJ, INTC, YHOO, AXP, QCOM, VZ, MSFT, SBUX, and countless others. Below is a list of names that will report next week that have weekly options available for trading. After the ticker, the columns show the biggest gain, biggest drop, average move (non-directional), and stock price reaction last quarter. Monday Before the Open Ticker Max Min Abs Avg Last Q HAS 12.55% -7.20% 5.03% 1.36% MS 4.38% -5.40% 2.48% 1.12% PEP 3.04% -2.21% 1.53% -0.74% Monday[...]

  • Market News | Apr 13, 2016, 4:51 PM

    CBOE Introduces First in a Series of Indexes Designed to Target Investment Outcomes

    CBOE Introduces First in a Series of Indexes Designed to Target Investment Outcomes

    CHICAGO, IL -- April 13, 2016 -- Chicago Board Options Exchangeâ (CBOEâ) today announced it has created a series of 13 “Buffer Protect Indexes,” the first in a family of options-based strategy performance benchmarks that are designed to target the outcomes of specific investment strategies. The CBOE S&P 500 Buffer Protect Indexes measure the performance of a hypothetical portfolio of S&P 500® Index (SPX) FLexible EXchange® (FLEX) options designed to provide[...]

  • Market News | Apr 10, 2016, 1:00 PM

    The Weekly Options News Roundup - 4/8/2016

    The Weekly Options News Roundup - 4/8/2016

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast, online and social media outlets. VIX FIX – Volatility Stands By, Bye, Buy Markets retreated this week, coming off of their March gains. The VIX Index spiked to 16.70 on Thursday, before leveling out at 15.36 on Friday. As the VIX Index trends lower this month, some investors are using VIX to pack their portfolios with protection, predicting[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Apr 10, 2016, 7:51 AM

    Weekend Review - VIX Futures and Options - 4/4 - 4/8

    Weekend Review - VIX Futures and Options - 4/4 - 4/8

    A week ago Thursday I was in Arizona speaking to an investment club and was asked if VIX would hit the 12’s anytime soon. I said I didn’t think so and the following day VIX came within a penny of a 12 handle. This week I was spared a trip to the wall of shame as VIX worked 17% higher to finish at 15.36. The futures were at a nice premium before this week so the front month April contract, which expires on the open April 20th, rose only 8% as the curve flattened slightly after spending[...]

  • Market News | VIX | Trader Talk | Strategy | Trade Ideas | Apr 9, 2016, 3:15 PM

    Weekend Review - Volatility Indexes and ETPs - 4/4 - 4/8

    Weekend Review - Volatility Indexes and ETPs - 4/4 - 4/8

    The S&P 500 lost a little over 1.2% last week, but the impact on volatility indexes was more than one would expect from loss like that for the S&P 500. Most significant to me was that both the 3-month (VXV) and 6-month (VXMT) S&P 500 oriented volatility indexes returned to average 2015 levels. This was something I was a bit obsessed with to begin 2016. The shorter end of the curve is still below last year’s average, but a few more weeks like last week and we will be right back to[...]