Category Archives: Education

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TYVIX Weekly Review: Is Fed Fatigue Setting In?

  As market participants returned to the view this week that a September (rather than December) fed fund hike may be more likely, backed up in part by an as-expected U.S. July employment report on Friday, expected Treasury volatility measures through December 2015 decreased, but just barely. At week’s end, the TYVIX Index was still […]






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CBOE Continues to Empower Investors with its Acquisition of Livevol, Inc. Technology

Today is a fantastic and exciting day for CBOE Holdings and Livevol, Inc., but more importantly for the sophisticated investor community who trade equity and index options.  As you may know, the CBOE announced today that its acquisition of the market data services and trading analytics platforms of Livevol, Inc. has officially closed.  Livevol is […]






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DIARY of a FIRST TIME TRADER – Oops I did it again!

So I just started trading…about 2 weeks ago.  I’d been thinking about it for years, I’ve watched thousands of options videos.  Literally thousands!  I’m the producer of CBOETV so, yeah, I’ve created…edited…filmed…reviewed ohhhhhhhh about 10K options related videos.  BUT I’d never placed a single options trade.  I decided it was time to stop buying shoes, […]






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Options Strategy: The Iron Butterfly

The curiously-named “iron butterfly” is a complex strategy offering limited losses and limited profits. It is an expanded version of the basic butterfly (two separate spreads offsetting one another). The “iron” version is a combined straddle consisting of four options instead of the butterfly’s three. An iron butterfly can be either long or short. The […]






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SPX Version of SPY Hedge from Barron’s

Over the weekend, there was a discussion of hedging portfolios with options in my favorite column, The Striking Price, which appears every weekend in Barron’s. Steve Sears relayed a reader request to Stephen Solaka who manages money for Belmont Capital out in sunny but dry California. The question was basically, “How do I go about […]






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Options: Delta Neutral Trades

A delta neutral trade is one in which a long and short option contain offsetting delta so that the net delta is at or near zero. Delta is a measurement of the degree in an option’s price movement when the underlying moves. The theme of delta neutrality can refer to many differently constructed strategies including […]






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Volatility of VXTY Futures in an Illiquid Treasury Market

A recurring topic of discussion among market participants is how illiquid the Treasury market has become and what impact this will have on volatility.   In particular, there is concern over a possible repeat of the “flash crash” of October 15, 2014, when a surge of volume in the CME’s 10-year Treasury futures pushed down Treasury […]






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VIX Near the Bottom?

The VIX has a highly negative correlation to the SPX. The VIX is priced upon the time value that is embedded in the premium of SPX options. When stocks fall they usually move much more rapidly to the downside than they move to the upside. As the stocks fall investors rush  to scoop up puts […]






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Agenda for RMC Europe, CBOE Presents 35 Speakers

The Fourth Annual CBOE Risk Management Conference Europe will occur on September 28 – 30, 2015, at the InterContinental Hotel in beautiful Geneva, Switzerland. This week the Agenda and List of 35 Speakers for RMC Europe were published at www.cboermceurope.com.  Hosted by the CBOE, RMC is an educational forum dedicated to exploring the latest products, […]






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Trade Analysis – Selling $SVXY Puts

Editors note – we would like to welcome Meredith Kelley Zidek as a new contributor to the CBOE Options Hub.  Meredith is a private investor whose interests include equities, options, and commodities.  She began trading equities in 2007, and since then has cultivated interests in corn, energy, and most recently, index and equity options. Almost […]