Weekend Review – Russell 2000 Options and Volatility – 9/19 – 9/23

The relative performance of small caps to large caps has been phenomenal for those who picked the equity market bottom back in February.  This past week the Russell 2000 (RUT) almost doubled the performance of the large cap focused Russell 1000 (RUI) rising 2.56% versus 1.30%.  This places RUT at up 10.45% for 2016 while RUI is up a still respectable 6.06%.  The really amazing numbers shows up when we look at what RUT has done relative to RUI since February 11th of this year.  RUT is up 31.6% since the equity market bottomed out while RUI is up 19.3%.

RUT RUI

VIX took it on the chin last week as the equity market positively digested the FOMC announcement and subsequent Janet Yellen presser.  The CBOE Russell 2000 Volatility Index (RVX) also dropped, but not to the extent of VIX which resulted in a spike for the RVX / VIX premium.