CBOE Bracketology – Q1 Volume Now, Not Tonight

Anybody have a team left in tonight’s NCAA basketball finals?  Your brackets may have been demolished (unless you are Warren Buffett), but options fans can always look to the CBOE for intriguing comparisons that can help hone their trading and investment strategies.

What’s a bracket without an underdog?  And what’s a playoff without a discussion about the seeding process?  RUT (#3 volume in Q1 2014) had a tough seed in our quarterfinal pairings, but FXI as the #5 seed advanced to the semi-finals.  Here is a newly constructed bracket that uses CBOE data.

MM Vol Brackets-Top volume in Q1

MORE DIVERSIFIED PRODUCT LINE AT CBOE

In the late 1980s the vast majority of CBOE’s most liquid products were options on stocks and options on stock indexes.  As shown in the chart above, CBOE now offers a much more diversified product line, with the addition of options on commodity-based ETFs, options on global ETFs, options on volatility indexes, and options on interest-rate-based ETFs.    In the first quarter of 2014, the CBOE products with the highest average daily volume were S&P 500® (SPX) options (877,560) and options on the CBOE Volatility Index® (VIX®) (773,771).  Visit www.cboe.com/index to learn more about the options on hundreds of securities offered by CBOE.

Did a CBOE options product you trade not make the playoffs?  let us know, and enjoy the game tonight.

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Matt Moran

Matt Moran is vice president of business development for Chicago Board Options Exchange (CBOE), where he communicates with pension funds, mutual funds, and financial advisors. He has delivered more than 200 presentations worldwide on the topics of managing volatility and adding income with option-writing strategies. Previously,…