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 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 annual targeted returns.
The strategy leverages options as risk management tools by enabling investors to limit downside losses while providing market participation up to a targeted level – essentially allowing investors to define their returns for the year.
For more information, go to www.cboe.com/bufferprotect.
Department of Labor Fiduciary Proposal
Last week, the Department of Labor (DOL) released its final Conflict of Interest Rule and related exemptions. The final rule and related exemptions permit all asset types, including exchange-traded options and futures, to be used in ERISA plans (401(k)) and IRAs.
For more information on this issue, please refer to the CBOE Government Relations Website.
“New Fiduciary Rule Spares Options” – Steven M. Sears, Barron’s
VIX Becomes a Night Owl
At 2:15 this morning, CBOE began overnight dissemination of values of the CBOE Volatility Index (VIX Index), providing investors real-time volatility information when news breaks overnight. For more information, see the Press Release.
“CBOE to Start Overnight Dissemination of CBOE Volatility Index (VIX) on 15 April, Hedgeweek
“CBOE to Start Overnight Dissemination of CBOE Volatility Index (VIX) from April 15th” – FTSE Global Markets
The market continues its steady climb toward 18,000, while the VIX Index continues to drift lower, resting around the 13 level today, a range not seen since last October. Will strong earnings be the catalyst to drive the Dow higher and volatility even lower? .
“ETFs to Hedge Against Scary Earnings” – Tom Lydon, Fox Business
“The Trader’s Cure for the Volatility Blues” – Thomas Preston, The Ticker Tape
“My Continuing Fascination with VIX Linked Products” – Peter Tchir, Forbes
“Emerging-Market Fear Gauge Narrows Spread With VIX on Fed” - Srinivasan Sivabalan, Bloomberg
“Why Investors Pay Attention to the Death Cross” – Yahoo News