Category Archives: Education

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Day Three Agenda: CBOE Risk Management Conference March 6th

Day Three of the 31st Annual CBOE Risk Management Conference (RMC) on March 6th at the Hyatt Aviara in Carlsbad, California, has a terrific lineup scheduled.  RMC is well known as the premier educational forum for option professionals looking to enhance their knowledge on using equity derivatives and volatility products to manage risk.  This three-day […]

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Day One Agenda: CBOE Risk Management Conference, March 4th

CBOE’s 31st Annual Risk Management Conference (RMC) will be held March 4 – 6, 2015 at the Park Hyatt Aviara in Carlsbad, California.  RMC is the premiere financial industry conference designed for institutional users of equity derivatives and volatility products.  If you’re a financial professional interested in learning the latest risk management techniques and how […]

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The Changing Mindset of Investors and Traders

One thing is for sure, the mood and temperament among investors and traders changes like the direction of the wind.  But leaning to hard one way can be very damaging to your wealth and your mind.  Certainly the unknowns out there are the challenges we have to either dodge or just embrace.  If you have […]

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Weekly Weekly’s for 1.22.15

Traders are jumping into weekly options to trade upcoming earnings. I’m Angela Miles covering weekly options expiring this Friday and next Friday. Starbucks (SBUX) turns in earnings after the close. The straddle at the 81 strike is pricing in about a 3% move up or down. Last year, the market suggested a 5% move off […]

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NFLX Earnings Trade Idea

Netflix, Inc. [Nasdaq: NFLX, $342, up $4.66] is scheduled to release its fourth quarter earnings report today following the close of the market session. Consensus analyst estimates are forecasting earnings per share of $0.45 on overall revenues of $1.48 billion. The same quarter one year prior (Q4 2013) saw EPS of $0.66 on $1.18 billion […]

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New Study – Funds That Use Options (Part 3 on Related Benchmarks & SPX Options)

A groundbreaking new study — “Highlights of Performance Analysis of Options-Based Equity Mutual Funds, CEFs, and ETFs” authored by Keith Black and Edward Szado — analyzed SEC-regulated investment companies that focus on use of exchange-listed options for portfolio management (options-based funds). This is my Part 3 Blog on the study. The first part of the […]

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New Study – Funds That Use Options (Part 2 on Lower Volatility)

A new study — “Highlights of Performance Analysis of Options-Based Equity Mutual Funds, CEFs, and ETFs” — analyzed SEC-regulated investment companies that focus on use of exchange-listed options for portfolio management (options-based funds). I still speak with novice investors who think that all options strategies are risky, but the study found that the Options-Based Funds […]

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Wall of Worry is up High in 2015

We love market skeptics, as they will take any particular piece of news and spin it negatively.  Don’t get me wrong, when there is ‘bad’ stuff happening we must take notice of it and respond accordingly.  But, is there anyone out there who is not spooked after the first week of trading the new year?  […]

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New Study – Funds That Use Options – Growth (Part 1)

A new study — “Highlights of Performance Analysis of Options-Based Equity Mutual Funds, CEFs, and ETFs” — analyzed SEC-regulated investment companies that focus on use of exchange-listed options for portfolio management (options-based funds). Key highlights of the study are summarized below, and for more analysis please visit www.cboe.com/funds. CO-AUTHORS of the CBOE-commissioned study on behalf […]

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Weekly Weekly’s Option Report 1.8.15

Oil, earnings and stocks with hot options action are all coming your way.  I’m Angela Miles covering Weeklys set to expire tomorrow. Next Friday is a traditional options expiration. Let’s get rolling with oil. Oil futures are trading below $50 per barrel this week. In weekly options for BP there are traders taking at-the-money positions […]

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Capitulation Or Acceleration? – Weekly Market Outlook

Stocks toyed with the idea two weeks ago, but pulled the trigger last week.  What’s that?  A significant stumble.  After the bullish momentum slowed the first full week back after Thanksgiving, it reversed – in spades.  The S&P 500’s (SPY) (SPX) 3.5% pullback last week was actually the worst single calendar-week performance since August of […]

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Weekly Market Commentary 12.12.14

Various indicators have been turning bearish since mid-November.  But until this week, $SPX itself had not broken down, and since price is “king,” that was quite important.  However, now $SPX has broken down, as it has fallen below support at 2050.  This completes a bearish pattern, and a full-fledged correction is underway. This could be […]

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Weekly Weekly’s Option Report 12.11.14

Volatility is shaking up the market and traders are loving the fast-pace of trades in the Weekly’s.  I’m Angela Miles. Today I am covering Weekly options expiring this Friday.  Next Friday is a traditional options expiration. I’m starting with trades in the SPX. It’s a big volume day for SPX (S&P 500 Index) options contracts as the market […]

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Index & ETF LEAPS To Be Added for 2017

On Wednesday, December 24, 2014, trading begins for December 2017 LEAPS® in the below 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 (S&P […]

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Skipping Around: Of Jobs, Oil and Markets

Today, we’ll take a look at how jobs, oil and market volatility are playing a role in the market environment. A Solid Jobs Report:  But You Can’t Please Everyone Last week’s job number took many by surprise.  What a great report it was, 321K jobs created based on the latest survey, previous reports revised upward.  […]

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Risk Management in Trading Trumps All

During the recent period of high volatility many of my client portfolios took a ride up and then down then back up again, which may be of some concern.  I received a phone call from of them (of which I rarely do) and she asked if I could just ‘sell stuff before the market goes […]

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Free Webcast and a Cyber Monday Deal

Tomorrow Mark Sebastian and I will be hosting a webcast at 3:30 pm Chicago time to discuss our recent paper on leveraging buywrite strategies along with a discussion of preliminary results for a leveraging SPX put selling strategies. There’s still time to register – www.cboe.com/webcasts CBOE is on the “Cyber-Monday” bandwagon offering deeply discounted online […]

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Weekly Weekly’s Option Report 11.26.14

The Weeklys are on short leash this week. I’m Angela Miles covering weekly options expiring this Friday and Next Friday. The market is open all day today, closed Thursday for Thanksgiving and open for a half day Friday. So there’s not much time left until this week’s options expiration, which is perfect for traders who […]

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Thanksgiving Trading Schedule 2014

We got a few e-mails today in The Options Institute, asking about the trading schedule for the rest of the week.  The chart below summarizes it in a very understandable fashion.  The bottom line for option trading in stocks, ETF’s and Indexes – Wednesday is a normal trading day, Friday is a half-day.  The extended […]

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Don’t Let a Trade Define You

As traders and investors we often judge ourselves by the wins/losses in our buying/selling activities.  Yet, the results – while they do matter – are only a small part of the overall success you will achieve.  Many are destined to succeed based on their account growth, yet others (like myself) consider success as it relates […]

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Oil & Dollar At Crucial Long-Term Areas – Weekly Market Outlook

While the release of the Federal Reserve’s meeting minutes on Wednesday of last week was supposed to be catalytic, the market seemed a little disappointed – and disinterested – in the fact that Janet Yellen and her cohorts didn’t really say much (or decide much) of anything during last month’s gathering.  It wasn’t until Friday’s […]

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Small, But Growing, Reasons To Be Concerned Here – Weekly Market Outlook

Stocks may have technically made a fourth straight weekly gain last week, but the real story was the incredibly quiet, flat market action.  We’ll delve into overall stock market index analysis, and some factors that have us concerned despite the overall bullish trend momentum picture, after we take a look at the recent and upcoming […]

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Weekly Weekly’s 11.14.14

JC Penney and Cisco are in play post earnings! Next week is traditional options expiration, so today I’m mainly focused on options expiring this Friday, November 14th. Starting with JCP. A trader told me this one was difficult to predict how the earnings move would shape up. JCP reported a sales miss, but its loss […]

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10-YEAR U.S. Treasury Note Volatility Index Futures to Launch Next Week

CBOE Futures ExchangeSM (CFE®) confirmed today that it will launch futures trading on the CBOE/CBOT 10-year U.S. Treasury Note Volatility IndexSM (ticker symbol: VXTYN) next week, on Thursday, November 13, 2014. Futures on the VXTYN® Index offer customers a way to hedge pure interest rate volatility risk based on U.S. government debt with a single […]

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Dividend Play in Apple Marks the End of the Golden Goose

Apple options have led single stocks for several years now, with recent average daily volume near one million contracts and 9.5million contracts of open interest – a full 7.4% of single-stock total OI. On many days nearly 10% of all the single stock flow is in AAPL- leaving the other 3693 listings in the dust! […]

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The Weekly Options News Roundup – 10/25/2014

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. That’s Billion With a “B” Amidst last week’s record trading volumes and extreme market volatility, an estimated $90 billion worth of CBOE Volatility Index (VIX) options and […]

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Calculating the New VIX—the Easy Part

The movements of the CBOE’s VIX® are often confusing.  It usually moves the opposite direction of the S&P 500 but not always.  On Fridays the VIX tends to sag and on Mondays it often climbs because S&P 500 (SPX) option traders are adjusting prices to mitigate value distortions caused by the weekend. In addition to these market driven eccentricities the […]

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Will The Bounce Have Legs? – Weekly Market Outlook

Although the market technically lost ground last week, between Wednesday’s and Thursday’s back-to-back intraday reversal bars and Friday’s strong bullish follow-through, stocks ended the week on such a positive note that it’s tough not to be at least a little bullish now.  And, given that all big trends start out as small ones, Friday’s bullish […]

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Weekly Weekly’s Option Report 10/16/14

Traders are loving the wild rides in the market. I’m Angela Miles covering Weekly’s options expiring next Friday, 10/24.  I’m starting with SPX this week, because in my last weeklys report, there was notable downside put buying around the 1875 strike. Wow, did those traders play it spot on as the S&P 500 plunged!  In […]

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More 2017 LEAPS® Listed Today

As of this morning, we are now 2/3 of the way through listing ETF and stock (equity)  LEAPS® options expiring in January of 2017.  Monday September 15th we added 2017 Leaps for stocks on the “January Cycle”.  This morning we added LEAPS on those stocks and ETF’s in the “February Cycle”,  and in five weeks […]

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Do Options Dream of Dancing Underliers?

While doing simulations on volatility and the square root of time I started thinking about what kind of time options experience—calendar time, market time, or something in-between. The CBOE’s VIX® calculations use calendar time, a 365 day year, but most option gurus recommend using a 252 day year for volatility calculations—the typical number of trading […]

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VIX Spot Index to Include S&P 500 Weekly Options Beginning Oct. 6th (Part 1)

Beginning Monday, October 6, 2014, CBOE will calculate the spot value of the CBOE Volatility Index® (VIX®) using S&P 500® Index (SPXSM) options with weekly and standard 3rd Friday expirations that more closely bracket the 30-day target timeframe. While this change is not expected to have a dramatic impact on the spot VIX Index (see point […]

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Strong Long-Term Performance for CBOE’s BXY and PUT Indexes

Can index-option-writing strategies have relatively strong performance even when the VIX has dipped below the 16 level?  As shown in charts below, over the past quarter-century both CBOE S&P 500 PutWrite Index (PUT) and CBOE S&P 500 2% OTM Buy-Write Index (BXY) have had relatively strong returns and lower volatility when compared to some key […]

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Warning Alarm Or Healthy Pullback? – Weekly Market Outlook 9.29.14

The BigTrends TrendScore is a daily reading on the bullish/ bearish level of various market assets – it uses the S&P 500 Index (SPX) (SPY) as a proxy for the broad market.  The SPY Trend-Score fell out of the bullish range for the first time since early/mid August on last Thursday, but did close back into bullish territory on Friday. To some […]

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BABA, It’s Option Time – Monday

CBOE has received permission from the OCC  to list Alibaba Group Holding (BABA, ~ $89) options next Monday, Sep. 29th .  Here’s  what you need to know: Strikes:               75 – 100 Increments:         5-point Cycle:                  January LEAPS:                  Yes Penny Pricing:    No Weekly’s:            Yes American Style options like all other stocks, trading hours will also be standard – 8:30am […]

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Weekly Market Commentary 9.26.14

$SPX broke below the bottom of the previous trading range). That is, $SPX closed well below the previous support in the 1978-1985 area. If it can close below 1978 again today, that would confirm the downside breakout and would generate a confirmed sell signal for the intermediate-term. Equity-only put-call ratios have been on sell signals […]

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Weekly Weekly’s for 9.25.14

It’s big week for weekly options!  I’m Angela Miles covering weekly options expiring this Friday and next Friday. Apple shares are trading around a 3 point range this week. Options contracts are trading briskly. Apple confirms pulling its IOS 8 software update, which is causing some iPhone users to lose their cell service. There are also customer complaints […]

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How I Paid off $22,000 of Credit Card Debt

Ding dong the witch is dead! Which old witch? The credit debt witch! Here’s how I killed the wicked old witch of debt and eliminated twenty two thousand of credit card debt in just three years. If you have questions or want to share your story about paying off credit card debt visit – http://youngfinances.com/

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Blogging Options: CBOE Morning Update 9.23.14

Happy Autumnal Equinox. European stocks lead US markets lower this morning after falling ~1%+.  Airstrikes in Syria also have traders and investors on edge. Oil and gold higher, grains mixed. A few economic reports later this morning.  how ’bout them Bears!  Volatility as an asset class: CF Industries Holdings (CF) is up $12.22 to $268.74 […]

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Long-Term Uptrend Remains Intact – Weekly Market Outlook

While Friday wasn’t a particularly great day for stocks, the week itself was a winner on the heels a Goldilocks assessment from Janet Yellen and her cohorts at the Federal Reserve.  While the economy isn’t yet strong enough to end the bond-buying program cold turkey, it’s also not weak enough that the Fed doesn’t see […]

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Weekly Weekly’s for 9.18.14

Where does the trade go from here?  I’m Angela Miles, and that is what I am covering today. Option’s plays in hot stocks going into next week’s options expiration. Let’s get it started with the grand-daddy of them all: Apple. Apple’s iPhone 6 hits store shelves tomorrow. Implied volatility has remained tame with many traders […]