Category Archives: Education

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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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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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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 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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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 […]

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Alibaba – Premiering Soon at CBOE

We don’t have to wait “One Thousand and One Nights” for the Alibaba IPO.  We have seen several reports about Alibaba (BABA is the expected stock symbol) being priced on Thursday September 18th and shares trading Friday, September 19th.  When all is finalized we will be back to confirm everything, but this is a good […]

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The Volatility Surface: Skew and Term Structure

In one of the final sessions of Day Two, Sheldon Natenberg, Co-Director of Education, Chicago Trading Company, and Natasha Jhunjhunwala, Director, Equity Derivatives Product Management, Credit Suisse, presented on “The Volatility Surface: Skew and Term Structure.” Natenberg is the author of “Option Volatility and Pricing,” one of the most widely read books by option traders […]

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Weekly Weekly’s for 9.4.14

Apple leads the way in my report on Weekly’s. The highly anticipated new product launch is next Tuesday. Today, I’m covering weeklys set to expire this Friday and next Friday, September 12th. It’s been a wild week for Apple (AAPL) traders. The stock is now trading below $100. Some people say it’s profit taking ahead […]

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Day One CBOE RMC Europe Recap

The 3rd edition of CBOE’s Risk Management Conference held in Europe commenced today with three presentations covering a diverse range of topics. The day began with an informative and educational presentation on Option and Volatility Strategies by Paul Stephens and Colin Bennett.  More color from this colorful presentation may be found at – http://www.cboeoptionshub.com/2014/09/03/rmc-kicks-primer-options-volatility-strategies/ Bill […]

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RMC Kicks off with Primer on Options and Volatility Strategies

The first session kicking off the 2014 CBOE Risk Management Conference Europe was led by Paul Stephens from CBOE and Colin Bennett Head of Quantitative and Derivative Strategy at Banco Santander Central Hispano.   Bennett is also the author of Trading Volatility which may be found at www.trading-volatility.com. This session was a great primer for the information […]

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Weekly Weekly’s for 8.28.14

As we inch closer to the long Labor Day Holiday weekend, I’m mostly focused on weekly’s with options expiration for this Friday. I have a feeling many traders will be using this strategy with the weeklys for a quick turnaround play before taking off for the weekend. It’s going to be very interesting to see […]

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Expiration Friday – At Last

Expiration Friday. Since the beginning of time (OK, the last 40 years we’ve had listed options), options expired on the Saturday following the 3rd Friday of the month.  Why Saturday? Let’s take a walk to the way-back machine with Mr Peabody.   I was a floor trader at the CBOE and I am trading front-month options […]

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Are You Making These Common Financial Mistakes?

The social media team at CBOE is proud to welcome a new contributor.  I met LaTisha Styles when visiting Kennesaw State University a few years ago. She is one of the brightest and most articulate students I have had the pleasure of meeting while traveling on behalf of CBOE. In 2010 LaTisha started YoungFinances.com and has been […]

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Labor Day Holiday Trading Schedule

Labor Day is next Monday, this summer went fast.  The following is the trading schedule for Chicago Board Options Exchange® (CBOE®), C2 Options ExchangeSM (C2SM) and CBOE Futures ExchangeSM (CFE®) in observance of the upcoming Labor Day holiday: Friday:  Regular trading hours for everything. Monday:  CBOE & C2 Closed. CFE:   All products closed with the […]

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CBOE’s Ed Tilly Takes ALS Ice-Bucket Challenge

I’m a little wet and the water was cold, but I was thrilled to participate in the ALS Ice-Bucket Challenge this afternoon. I’ve challenged three others to do the same – Steve Sears of Barron’s, Rich Repetto of Sandler O’Neill, and market commentator Jon Najarian. As of this morning, the ALS Association has raised $79.7 […]

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Weekly Weekly’s for 8.21.14

Gap, GameStop and Salesforce.com all report earnings after the bell and traders are setting up now in weekly options. I’m Angela Miles covering Weeklys set to expire this Friday and next Friday. I’m falling into the Gap to start this report. Some traders are using call spread strategies as an earnings play on GPS. As […]

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12 Key Stats Re: VIX Index

In the recent August 16 Striking Price column in Barron’s, Steven Sears authored a piece entitled “A New Vision of VIX” that noted –  “Over the past 21 years, the CBOE Volatility Index, or VIX, has emerged as one of Wall Street’s most watched sentiment indicators. …Krag “Buzz” Gregory, a Goldman strategist, found that U.S. […]

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Walking A Fine Line Here – Weekly Market Outlook

In retrospect, last week’s bounce wasn’t have been a total surprise.  Most of the market’s major indices were approaching major support levels, as we’ve previously discussed.  Will the momentum continue or will the bearish volatility return? We’ll look into that, right after a quick look at all of last week’s and this week’s economic numbers. […]