• Market News | VIX | Trader Talk | Strategy | Feb 20, 2016, 7:12 PM

    Weekly Review Russell 2000 Options and Volatility 2/16 - 2/19

    Weekly Review Russell 2000 Options and Volatility 2/16 - 2/19

    Small caps had a great holiday shortened week with the Russell 2000 (RUT) rising almost 4%.  RUT also played some catch up with the Russell 1000 (RUI) as the large cap benchmark was up a little less than 3%.  However, RUT has a long way to go to catch up with RUI for 2016.  However, there’s a lot of trading left to be done for 2016. The CBOE Russell 2000 Volatility Index (RVX) and VIX both dropped dramatically last week.  However, they dropped in line with each[...]

  • Technical Analysis & Charts | VIX | Futures | Feb 19, 2016, 4:15 PM

    Weekly Stock Market Commentary 2/19/16

    Weekly Stock Market Commentary 2/19/16

    The rally has been powerful, but is it just another oversold affair? At this point, we can't really tell. The next resistance area is at 1940-1950, and that's a more crucial point. If $SPX can rise above that level, then it will have formed a "W" on its chart, and that would be quite bullish. On the other hand, if the 1950 resistance holds, or is quickly retraced, then a much more bearish scenario unfolds. Put-call ratios are very bullish. Since these are 21-day moving averages, they are[...]

  • Market News | VIX | Futures | Feb 19, 2016, 2:25 PM

    February 19, 2016 Weekly Report on CBOE VIX Index Suite

    February 19, 2016 Weekly Report on CBOE VIX Index Suite

    Ebb and Flow of Financial Signals Increase Foreign Exchange Volatility Volatility has migrated to the foreign exchange markets, especially the dollar/yen exchange rate. After a significant rally in early February, equity and interest rate volatility have subsided -- along with a slide in interest rates and despite oil-driven fluctuations in equity values. This shift is highlighted by rescaling indexes to 100 as of the start of 2016 (Figure 1). Possible factors driving the increase in foreign exchange[...]

  • VIX | Education | Futures | Feb 19, 2016, 1:35 PM

    The Weekly Options News Roundup – 2/19/2016

    The Weekly Options News Roundup – 2/19/2016

    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 Makes Itself At Home Volatility seems to have settled in to stay. Blame it on the Fed, oil prices or global economic weaknesses, market turbulence seems to have hung its coat and made itself at home.  Volatility may not be rising, but it’s definitely staying put. “Volatility Update:[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Feb 17, 2016, 3:43 PM

    VIX Front Month - Second Month Backwardation Streak Ends at 30 - So Now What???

    VIX Front Month - Second Month Backwardation Streak Ends at 30 - So Now What???

    For the first time in 2016 the front month VIX future closed at a discount to the second month.  This brings the recent streak of backwardation to an end at 30 days.  The table below shows the 10 longest first month versus second month backwardation streaks with the recent run coming in a solid fourth place. So now what?  Anyone’s guess is as good as anyone else’s, but I did some quick historical analysis.  The table below shows the 30, 90, 125, and 250[...]

  • Market News | Technical Analysis & Charts | VIX | Strategy | Feb 16, 2016, 12:21 PM

    What to do When a Stock Crashes

    What to do When a Stock Crashes

    Recently we saw some epic declines of individual stocks after posting shaky earnings reports.  Topping the list was long-time growth name LinkedIn (LNKD), the social networking giant who saw its market value nearly cut in half after reporting weak forward guidance.  Tableau Software (DATA) had it even worse, falling nearly 50% on the same day.  We also witnessed other stocks with smaller but still significant declines (Hanes Brands, HBI and Outerwall, OUTR). This big money selling[...]

  • Technical Analysis & Charts | VIX | Futures | Feb 16, 2016, 9:59 AM

    BigTrends.com Weekly Market Outlook - Time Frames, Volume, Earnings

    BigTrends.com Weekly Market Outlook - Time Frames, Volume, Earnings

    As has been the case for a while, the market threw investors another curveball last week. That is, stocks initially acted as if they were finally going to tip over the edge of the cliff, but right before they reached the point of no return they bounced back just enough to offer a glimmer of hope. As encouraging as Friday's strong bounce was (and the pre-open strength on Tuesday is), the fact of the matter is, we're technically still closer to the aforementioned breakdown than we are to a rebound. [...]

  • Is VIX Approaching a Death Cross?

    Is VIX Approaching a Death Cross?

    I began my week updating charts and tables as I am heading to Tampa, FL to speak on options and then I’m off to Trader’s Expo in New York to deliver a couple of presentations.  The chart below, depicting the rolling 1 year and 5 year average closing prices for VIX is a favorite of mine.  I consider it a good depiction of the equity market shifting from a low to high volatility regime as the 1 year average approaches the 5 year average.  However, I noticed today that the[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Feb 14, 2016, 1:07 PM

    Weekly Review - Volatility Indexes and ETPs - 2/8 - 2/12

    Weekly Review - Volatility Indexes and ETPs - 2/8 - 2/12

    Three out of the four S&P 500 volatility oriented indexes were higher last week.  The shortest dated one, VXST, dropped a little.  We attribute this to the three day weekend impact that puts pressure on VXST, but also usually results in VXST rising the day after a holiday weekend.  For example on Friday VXST dropped 17% while VIX was down 9.74%.  I guess what I’m getting at here is that we should focus on the longer dated volatility indexes on the chart below to get[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Feb 14, 2016, 7:30 AM

    Weekly Review - VIX Options and Futures - 2/8 - 2/12

    Weekly Review - VIX Options and Futures - 2/8 - 2/12

    I had to double check the numbers when I looked at the closing curve this week as I had forgotten this was a holiday shortened week.  For those new to VIX, the calculation is based on calendar days and there is usually a small weekend impact which is exacerbated by three day weekends.  The futures anticipate this and don’t follow VIX to the downside.  In addition to the long weekend, there is a lack of big economic numbers or new scheduled for Tuesday which also may have had[...]

  • Market News | VIX | Trader Talk | Futures | Feb 12, 2016, 6:42 PM

    Weekly Review - Russell 2000 Options and Volatility

    Weekly Review - Russell 2000 Options and Volatility

    The pain continues for the Russell 2000 (RUT) in 2016 on both and absolute and relative basis.  For the year RUT is down over 14% while the large cap focused Russell 1000 (RUI) is only down about 9%.  The gap widened a bit this past week as RUI was down 1.00% and RUT lost 1.38%. Last year, when the market got into a real panic mode, VIX climbed to higher levels that the CBOE Russell 2000 Volatility Index (RVX).  Despite the weakness in stocks this year RVX has maintained[...]

  • VIX | Education | Futures | Feb 12, 2016, 1:53 PM

    February 12, 2016 Weekly Report on CBOE VIX Index Suite

    February 12, 2016 Weekly Report on CBOE VIX Index Suite

    Volatility Sizzles As Markets Waver Despite sparse developments in global fundamentals, and relatively good vibes from U.S. economic indicators, fear overtook financial markets this week and energized VIX indicators. The CBOE/CBOT 10-year U.S. Treasury Note Volatility Index (ticker symbol: TYVIX), the gauge for interest rate volatility, reached a value of 8.53 near the open on Thursday and closed at 7.65 -- the TYVIX Index had not closed this high since January 2015. In addition, the intraday high[...]

  • Market News | VIX | Education | Futures | Feb 12, 2016, 12:30 PM

    The Weekly Options News Roundup – 2/12/2016

    The Weekly Options News Roundup – 2/12/2016

    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. Overnight VIX Values Coming in March Beginning next month, CBOE will begin disseminating values for the CBOE Volatility Index (VIX Index) during its overnight, extended trading hours session (2:00 to 8:15 am CT) for SPX and VIX options. Overnight dissemination of the VIX Index will enable market participants to view volatility[...]

  • Market News | VIX | Education | Trade Ideas | Feb 10, 2016, 1:00 PM

    Record Open Interest of 2,333 Contracts for Options on MSCI Emerging Markets Index (MXEF)

    Record Open Interest of 2,333 Contracts for Options on MSCI Emerging Markets Index (MXEF)

    The open interest for options on the MSCI Emerging Markets Index (MXEF) recently rose to a record 2,333 contacts. Several institutional investors have expressed interest in the potential for a liquid MXEF options contract, particularly because the MXEF options contract is cash-settled and has a notional size that is about 24 times larger than options on the EEM ETF. IMPORTANT MSCI GLOBAL INDEXES In mid-2015 the total market capitalizations were $13 trillion for MSCI EAFE (MXEA) and $4 trillion for[...]

  • Market News | Technical Analysis & Charts | VIX | Futures | Strategy | Feb 8, 2016, 10:15 AM

    BigTrends.com Weekly Market Outlook - Hanging By A Thread?

    BigTrends.com Weekly Market Outlook - Hanging By A Thread?

    Although stocks were never significantly into profitable territory at any point last week, at the very least on Thursday it looked like we might stabilize with just a very minor loss.  The bears had other plans on Friday, however, sending the market 1.85% lower that day to the lowest close in nearly two weeks. And yet, it's worth noting that neither the S&P 500 (SPX) (SPY) nor the NASDAQ Composite (COMP) broke under their most critical floors; we're still not past the point of no return[...]

Special Offers
*Third Party Advertisements

Advertisement Advertisement