The Weekly Options News Roundup – 8/19/2016

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

Markets Get Social Powers
CBOE has partnered with Social Market Analytics (SMA) in the development of a suite of indexes that harness predictive signals from Twitter traffic to generate different “S-Factors” that gauge investor stock sentiment.  On Monday, the CBOE-SMA Large Cap Index (SMLC Index), the first in the series, was launched. The SMLC Index tracks the performance of a hypothetical strategy, which on a daily basis buys an equally weighted portfolio of 25 stocks with higher SMA S-Scores.

“Tweet Trades: CBOE Launches Benchmark Index Based On Social Media Sentiment” – Phil Rosenthal, Chicago Tribune

“CBOE, SMA Launch Social Media Sentiment Indexes” – Joanne Faulkner, Waters Technology

“CBOE Releases Its First Social Media-Based Sentiment Benchmark” – Aziz Abdel-Qader, Finance Magnates

“CBOE Launches First In Series of Social Media-Based Strategy Benchmark Indexes” – Mike Fox, Leap Rate

“New CBOE Indices to Focus On Social Media Metrics” – James Langton, Investment Executive

CFE Receives Singapore’s Seal of Approval
The CBOE Futures Exchange (CFE) recently received approval from the Monetary Authority of Singapore (MAS) designating it as a Registered Market Operator in the country.  This provides investors in that region with more direct access to VIX futures products as hedging tools in portfolios.

“CBOE Gets MAS Nod for VIX Futures” – Julie Aelbrecht, FOW

“CBOE Futures Exchange Granted Registered Market Operator Approval In Singapore” – HedgeWeek

“CBOE Futures Exchange Officially Approved In Singapore” – Mike Fox, LeapRate

VIX FIX: Volatility No Go  
CNBCBlogMarkets are ending the week lower as rumors circle that a September interest rate hike may now be on the table.  Markets have remained within a narrow trading range for most of the month, and as earning season comes to an end, all eyes are on the Fed.  The VIX mirrors this subdued market sentiment, as it failed to breach the 15 level this  month.  As the Fed meeting approaches and the U.S. presidential elections draw close, volatility could awake from its slumber.

“Some Traders Betting Wall Street’s ‘Fear Gauge’ Will Double In a Month” – Akane Otani, Wall Street Journal

“Call Buyers See a Market Plunge In September” – Steven M. Sears, Barron’s

“Investors Grab a Ride On the Fear Gauge” – Dan McCrum, Financial Times

“The Curious Incident of Volatility In Three Months’ Time” – Jon Sindreu, Wall Street Journal

“Don’t Fear the Eerie Calm In U.S. Stocks” – Nir Kaissar, Bloomberg

“Indicator of The Week: Does a Low VIX Mean It’s Time to Buy Options?” – Rocky White, Schaeffer’s Investment Research

“VIX, Volatility ETFs Reveal an Overly Complacent Market” – Max Chen, ETF Trends

“Why Investors Are Ignoring Warnings About Stocks” – Adam Shell, USA Today

“Does the Record-Setting Stock Rally Have Legs?” – John Kimelman, Barron’s

“Dean Curnutt Makes the Case For an Even Lower VIX”
Bloomberg Surveillance
Air Date: August 16, 2016

“Still Seeing Continuation of Sector Trends”
Bob Pisani
CNBC’s Closing Bell
Air Date: Tuesday, August 16, 2016