The Weekly Options News Roundup – 8.1.2014

The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast and online and social media outlets.

Using VIX for Protection

While the CBOE Volatility Index (VIX) remains below its historical average of 20, Russ Koesterich, Chief Investment Strategist of BlackRock, suggests investors utilize the VIX as a matter of protection even in times of calm.

“BlackRock’s Koesterich Says Buy Volatility During Market Calm” – Meghan Morris, Bloomberg

Signs of Anxiety are Returning to the Stock Market

The VIX Index rose from seven year lows in July, due to unrest in regions around the world. With the threat of changes in monetary policy by central banks, along with this global instability, volatility is expected to continue to increase.

“VIX July Gain Tops 8% as Ukraine Jolts Record S&P 500” – Callie Bost, Bloomberg

How Will VIX React to a Fed Move?

“So, what actually happens once the Federal Reserve begins to tighten monetary policy? The answer from the market’s volatility index historically has been, Not much…”

“Once Hawks Take Flight at the Fed, VIX’s Feather’s Won’t Ruffle” – Brendan Conway, Barron’s

Fear?  What Fear?

In a recent survey, nearly 50% of financial professionals said that “investors are too complacent given historically low volatility levels” and that most do not expect to see a sharp rise in volatility through the end of the year.

“Amid Sleepy Markets, Survey Suggest Investors Complacent About Volatility” – Chris Dieterich, The Wall Street Journal

CEO Outlook 2014

As we reach the midpoint of 2014, CBOE CEO Edward Tilly spoke with Markets Media and shared his thoughts on the first half of the year and what lies ahead for the remainder of 2014….

“Summer C-Level Series: Ed Tilly” – Terry Flanagan, Markets Media magazine

Alums in the C-Suite

Some companies have CEOs and CFOs that hail from the same university, including CBOE.  How does this dynamic influence management styles and working relationships?  CBOE CEO Edward Tilly and CFO Alan Dean find that this connection helps “sync” their thinking, except when it comes to their Chicago baseball rooting interests…

“When CEOs and CFOs Share an Alma Mater” — Maxwell Murphy, The Wall Street Journal

Career Advice

CBOE, along with several other Chicago financial institutions, hosts a summer intern program for youth seeking to break into the financial industry.  CEO Ed Tilly, along with executives from other financial firms and exchanges, spoke to the interns at an event hosted by John Lothian Newsletter.

“Trading Experts’ Advice: Embrace Change” – Thomas Dixon, Futures magazine