Marty Kearney

Marty Kearney

Mr. Kearney began his long association with the CBOE when he became an independent Market Maker in early 1981. Mr. Kearney traded options full time on the trading floor until 1992 and periodically thereafter until 1996. In early 1992 he became a founding partner and Registered Options Principal of a brokerage firm based in Chicago, a member firm of the CBOE. Mr. Kearney’s responsibilities included development and implementation of hedging and trading strategies using listed options for their institutional clients as well as their retail investors. Mr. Kearney is the co-author of Understanding LEAPS®, published by McGraw-Hill, September 2002. He has been a regular contributor to many news services including Reuters, Derivatives Week, BARRON’S, CNBC, Bloomberg, Group W, The CBS Radio Network, FORTUNE, Ticker Magazine, Stock Futures and Options, BBC TV and Radio, NPR, and others. Mr. Kearney served on various committees at the CBOE, including the Arbitration Committee from 1984 to 1996. Prior to joining the CBOE Mr. Kearney was a marketing director for NCR Corporation. Mr. Kearney is a graduate of St. Mary’s University (MN), BS, 1971, and pursued his MBA at Lake Forest Graduate School of Management. In 2006 he completed a 3-year SII/SIA program at the Wharton School of the University of Pennsylvania.

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CBOE Risk Management Conference – RMC Europe in Three Weeks

CBOE’s Risk Management Conference (RMC) Europe is quickly approaching.  As you know, it will be held at the Powerscourt Hotel, County Wicklow, Ireland (near Enniskerry – 20 minutes outside Dublin), from September 3 – 5, 2014.   That’s in three weeks!  We published the first two day’s agendas earlier this week, here is the Day Three [...]

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CBOE Risk Management Europe – Day Two Agenda

RMC Europe is only three weeks away. RMC’s Day One Agenda was mentioned here yesterday. The following is the tentative Day Two Agenda. Thursday, 4 September 2014 8:00am          Conference Registration and Buffet Breakfast 9:00am -9:15am         Edward T. Tilly, Chief Executive Officer, CBOE Holdings, Inc. Welcome and CBOE Update 9:15am -10:15am Keynote Speaker: David Hauner, Head of EEMEA Cross-Asset [...]

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Blogging Options: CBOE Morning Update 8.14.14

Weekly Jobless Claims spiked higher to 311k, putting a damper on stock futures.  10-year with a 2.3 handle, 2.395%.  Mr. Putin talking about the area needs calm sounds good to traders and investors. August Option Expiration tomorrow.  Good luck to Chicago’s  Jackie Robinson West in Little League World Series, starting tonight.  Volatility as an asset [...]

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CBOE Risk Management Europe Conference Draws Near

CBOE’s Risk Management Conference (RMC)  Europe is returning to The Powerscourt Hotel, County Wicklow, Ireland.   It will be held from Wednesday September 3rd to Friday September 5th.  2014.   Participants in 2012 had glowing comments on the beauty of the world famous Powerscourt Hotel, the hospitality of the Irish and the proximity and ease of travel [...]

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CBOE 5-Day Educational Session Wraps Up

Jim Bittman from the Options Institute at CBOE is shown teaching options to 110 regulators from CSRC In Shanghai.  CFFEX (China Financial Futures Exchange) hosted regulators from several regions in China at the Holiday Inn Pudong in Shanghai for two days of options training. Jim, Debra Peters and Eugene Zheng of CBOE also spoke for [...]

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LEAPS® for Stocks and ETF’s to be Added for 2017

We received two questions last week from investors regarding the listing of 2017 LEAPS® options for stocks and ETF’s.  The listing of LEAPS used to happen in the early summer for dates going out ~30 months.  The listing of LEAPS was pushed back a few months because our data showed they didn’t trade very much [...]

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Blogging Options: CBOE Morning Update 7.17.14

Overseas markets reeling after new Russian financial sanctions.  June Housing Starts with a huge miss (by ~125k) and May starts revised lower by 25k not helping stock futures in US.  10-year back below 2.5%.  20k VIX Futures trade i early session.  Volatility as an asset class eBay (EBAY) is up 60c to $51.30 in the [...]

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Blogging Options: CBOE Morning Update 6.26.14

May Income reported as up 0.4% and Spending higher by 0.2%. PCE Deflator showing a little more inflation.  Futures mixed.  World Cup Fever starts 11:00am CDT.  Good article yesterday here on SKEW Index from Matt Moran, a must read.  Volatility as an asset class: Lennar (LEN) is up $0.30 to $41.82 in the premarket after [...]

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2016 Index & ETF LEAPS To Be Added

On June 25, 2014, trading will begin for June 2016 LEAPS in the following Index and exchange traded fund (ETF) option products: DJX (Dow Jones Industrial Average) MNX (Mini-NASDAQ 100 Index) NDX (NASDAQ 100 Index) OEF (iShares on the S&P 100 Index Fund) OEX (S&P 100 Index with American Exercise) RUT (Russell 2000 Index) SPX [...]

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CBOE RMC Returns to Europe This Fall

The annual CBOE Risk Management Conference (RMC) is the premier financial industry conference designed for institutional users of equity derivatives and volatility products.  Now in its 30th year in the U.S., CBOE will be hosting the 3rd annual CBOE RMC Europe September 3 – 5, 2014 in County Wicklow, Ireland (outside of Dublin). CBOE RMC [...]

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VIX to Add Half-Point Strikes in Near-Term

On Thursday, May 29, 2014, CBOE will list half-point strikes in CBOE Volatility Index (VIX) options. The half-point strikes will be listed in the near-term expiration month of June and in the strike price range of 10 to 15 (i.e. 10.5, 11.5, 12.5, 13.5 and 14.5 strikes). CBOE will maintain half-point strikes, as described above, [...]

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“Thanks to a Fine Canadian Doctor…”

(Editors Note: The following are thoughts from a floor trader friend on Memorial Day, who wishes to remain anonymous.  We ran this blog last year going into Memorial Day and received several nice comments.  We hope you enjoy it). “Memorial Day” was called “Decoration Day” many years ago. It originated after the Civil War to [...]

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Memorial Day Trading Schedule, Monday May 26th

Next Monday, May 26th, we celebrate Memorial Day, so CBOE and C2 (as well as most other U.S. Exchanges) will be closed. This Friday, May 23rd, we will have normal trading hours at CBOE, C2 and CFE. On Monday May 26th, although CBOE and C2 will be closed, CFE will keep VIX Futures (and VIX [...]

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CBOE Mid-Day Update 5.20.14

The market gave up early gains and is hovering above the intra-day lows.  DJIA off 115 points, SPX down 11 points and NASDAQ lower by ~25. 10-year hasn’t budged, 2.51%.  FED’s Dudley spoke this morning saying rate rise should be a priority. CBOE trades 2.4mm of 8.1mm options traded so far.  This is a 5-week [...]

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Apple (AAPL) 7-1 Stock Split Draws Near

The Apple Inc. (“AAPL”)  7-for-1 common stock split is fast approaching.  This is Apple’s fourth stock split since going public (the last one was February, 2005). If you are trading AAPL options or stock there a few key dates and facts you need to be aware of:  June 2, 2014, is the record date, which [...]

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Blogging Options: CBOE Morning Update 5.8.14

Initial Claims dropped below the 4-week average, but rest of news this morning mixed.  ECB left rates unchanged.  East Ukraine will go ahead with referendum to secede on Sunday and Russia test fires rockets (ICBM’s) in Asia.  China says exports rose but unclear where goods went.  The Vietnamese stock market (granted it’s small) dropped 5.9% [...]

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GOOG Dividend So Far – So Good

Action in the Google (GOOG, $1131.91, off $2.98) options pit seemed pretty calm this morning.  Traders said there was nothing major going on in regards to the special GOOG 100% stock dividend.  holders of Class A GOOG shares received one Class C share for every one Class A share they own.  The new Class C [...]

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GOOG – Get Ready for Next Week’s Split

Split? Dividend?  Confusion for Google ($1129, up $14.72) investors is what’s coming up. CBOE RS (Research Circular)  # 14 – 154 is the document you need to be aware of.  If you trade GOOG options, It is VERY IMPORTANT.  Here’s the link: http://www.cboe.com/publish/ttstocksm/14-154.pdf GOOGLE has declared a special stock dividend to holders of Class A [...]

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CBOE Mid-Day Update 3.25.14

S&P cut Brazil’s debt rating by two notches to BBB-.  Consumer Confidence jumped sharply higher for March, reversing the Feb drop.   NASDAQ continues to lag the other major indices.  Options volume modest at mid-day. Carnival (CCL) is down $2.13 to $37.86 after the company reported better than expected adjusted earnings but issued guidance that fell [...]

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CBOE Market Closing Commentary 3.13.14

Markets sold off on strong volume.  DJIA off 231.19 (all 30 components lower), SPX down by 21.86 to 1846.34, NASDAQ lower by over 62 points.  Other major indexes off +1%.   Decliners led advancers on big board 2-1, Down volume beat up volume 5-1, and new lows beat new highs for the first time in [...]

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Blogging Options: CBOE Morning Update 3.5.14

ADP February Payrolls with a huge miss as we start Ash Wednesday, and January revised lower by 48k.  The two previous months adjusted lower as well.  European shares in mild retreat, Asian shares mixed. Volatility as an asset class Honeywell (HON) is up $0.73 to $95.33 in premarket as company sees double-digit earnings growth through [...]

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CBOE Risk Management Conference: Day Three Agenda

CBOE’s Risk Management Conference (RMC) in Bonita Springs Florida from March 17th – 19th, 2014 is fast approaching.  If you’re a financial professional interested in learning the latest risk management techniques, how to trade and hedge volatility, or simply master equity derivatives fundamentals, CBOE’s Risk Management Conference is the event to attend.  DAY THREE AGENDA [...]

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Expanded Trading Hours for SPX & VIX in Q3

In the 3rd Quarter of 2014, CBOE intends to introduce Extended Trading Hours (ETH) for options on the S&P 500 Index complex (SPX, SPXW, SPXQ, SPXPM) and on the CBOE S&P 500 Volatility Index (VIX), contingent upon completion of systems enhancements and Securities and Exchange Commission (SEC) approval of requisite rules. Extended Hours will be [...]

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President’s Day Trading Schedule for VIX Futures

Holiday trading schedules for the most part are….. well, boring.   For example, Information Circulars used to tell us tidbits like Presidents Day we’re closed for trading, see you Tuesday. Holiday trading hours in the future will be a little more interesting.   On Monday, February 17th the U.S. Exchanges are pretty much closed, but VIX Futures [...]

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Seven Stocks Added to Penny Pilot Program

On Friday, January 3, 2014, the Penny Pilot Program was modified to add the following seven option classes to replace the seven Penny Pilot Program option classes that have been delisted. Symbol  Company Name VOD      Vodafone Group PLC UVXY     ProShares Ultra VIX Short-Term Futures ETF DXJ       WisdomTree Japan Hedged Equity Fund NBG      National Bank of Greece SA [...]

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Twitter Options – Additional Data About Option Listing

We’re still ready for tomorrow’s opening of Twitter Inc. (TWTR)  options. We WILL have Extended Weeklys options on starting tomorrow.  One  exchange filed for Weeklys so CBOE will have them as well. So starting tomorrow you should see TWTR expiration’s on Friday November 22nd and 29th, Friday December 6th and 13th.  December 20th is regular [...]

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LEAPS Listing for 2016 Completed

Happy day after Veterans Day, and welcome back bond traders who got yesterday off. We added “Cycle 3″  LEAPS ® options for 2016 yesterday, Monday November 11th.  “Cycle 3″ LEAPS options are those with March, June, September and December expiration. This completes the addition of 2016 LEAPS in ETF’s and stocks. Cycle 1 LEAPS (January, [...]

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More 2016 LEAPS Added Yesterday

While we were keeping an eye on Washington negotiations and some of you may have been celebrating Columbus Day, we added “round 2″  of LEAPS ®  options for 2016 yesterday. LEAPS for 2016 were added for equities (stocks) and ETF’s in the February Cycle yesterday, Monday, October 14th.  When traders refer to the February cycle, [...]

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VIX – Crazy Record Day with Options and Futures

Options on the CBOE Volatility Index® (VIX® index) established an all-time, single-day volume record today.  VIX Options volume totaled an estimated 1,782,329 contracts, surpassing the previous record of 1,399,867, contracts traded on April 15, 2013. VIX Futures (VX) had their 4th busiest day ever, with 322,908  contracts traded.  This is the 6th time over 300,000 [...]

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CBOE’s Risk Management Conference Under Way

The CBOE’s Risk Management Conference (RMC)  Europe in Lisbon, Portugal began this morning.  RMC is the premiere financial industry event geared to institutional users of equity derivatives and volatility products.    The conference goes from today, September 30th through Wednesday October 2nd.  For those of you unable to make the trip, Russell Rhoads and Matt Moran [...]

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LEAPS for 2016 Arrive – Partially

We’ve had a few questions this week about the listing of LEAPS options for 2016. LEAPS for 2016 were added for equities (stocks) and ETF’s in the January Cycle this past Monday, September 16th.  When traders refer to the January cycle, they mean stocks that are in the January, April, July and October Cycle.  These [...]

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The SPX vs. SPY Advantage Series

Times almost up to register for a complete, in-depth webinar series, looking at SPXSM options from CBOE and the advantages of trading SPX for your income generation and risk management strategies. This three-part live webinar series, The SPXSM vs. SPY Advantage Series, kicks off tonight, September 19th, with a free webinar at 6:00pm CDT, with [...]

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AAPL Straddle – Math Made Simple

We’ve had a few inquiries about the AAPL Straddle mentioned in this mornings “Blogging Options“. With AAPL trading at ~$506 at the close yesterday, the September Weeklys (this Friday 9/13) Straddle closed at $17.20.  The talking heads on the business channels are guessing what the stock will do after AAPL’s “Special Event”, starting at noon [...]

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Risk Management Conference Europe – Day 3 Agenda

The CBOE Risk Management Conference Europe, Penha Longa Resort in Lisbon, Portugal from September 30th through October 2nd is fast approaching.  The full agenda and topics can be viewed at:  http://www.cboermceurope.com/agenda I’ve detailed the agenda for days one and two over the last few weeks. Here’s the schedule of topics and speakers for day three, [...]

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RMC Europe Day Two, October 1, Agenda

The CBOE Risk Management Conference Europe, Penha Longa Resort in Lisbon, Portugal from September 30th through October 2nd is getting a lot of buzz from Institutional traders in Europe.   The full agenda and topics can be viewed at:  http://www.cboermceurope.com/agenda Here’s the schedule of topics and speakers for Tuesday, October 1st: Keynote Speaker: William J. Brodsky, [...]

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Index LEAPS June 2015 Schedule Announced

On September 9th, 2013, trading will begin for June 2015 LEAPS in the below Index and exchange-traded fund (ETF) options: DJX (Dow Jones Industrial Average) MNX (Mini-NASDAQ 100 Index) NDX (NASDAQ 100 Index) OEF (iShares on the S&P 100 Index Fund) OEX (S&P 100 Index with American Exercise) RUT (Russell 2000 Index) SPX (S&P 500 [...]

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CBOE RMC Europe September 30th Drawing Interest

The CBOE Risk Management Conference Europe at the Penha Longa Resort (Lisbon, Portugal) from September 30th through October 2nd has generated a great deal of interest. We’ve received a few calls about the agenda and topics, which can be viewed at:  http://www.cboermceurope.com/agenda Here’s the schedule of topics and speakers Monday: Volatility Primer and Option Risk [...]

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Blogging Options: CBOE Morning Update 6.24.13

Volatility as an asset class iShares FTSE Xinhua China 25 Index is down 99c to $31.75 in the premarket as Chinese shares suffer its biggest daily loss in about four years. Overall option implied volatility of 19 is near its 26-week average of 20 according to Track Data, suggesting non-directional price movement. Vanguard Health (VHS) is [...]

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VIX June Settlement Reminder – Tomorrow 6.19

Settlement Reminder: Today, Tuesday, June 18th is the Last Trading Day for June in the following: VX, VM, VXEM, OV, VN, VXEW and GV futures and options. These contracts will settle tomorrow morning, Wednesday June 19th. We will post the settlement values when they are released tomorrow morning.

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Blogging Options: CBOE Afternoon Update 6.18.13

Volatility as an asset class Dell (DELL) is up $0.03 to $13.44 on volume of 17mm shares, after the company said in a letter to shareholders its  $13.65/share offer is ‘superior to any alternative’. July call option implied volatility is at 14, August is at 12, November is at 15; compared to its 19-week average of [...]