Category Archives: Market News

No Comments

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 [...]

No Comments

Blogging Options: CBOE Mid-Morning Update 10.22.14

Economic reports at the opening not helping stocks move one way or the other. SPY of $0.40.   Volatility as an asset class Yahoo (YHOO) is up $2.32 to $42.509 after reporting Q3 EPS 52c, compared to consensus 30c. October weekly call option implied volatility is at 69, November is at 42, December is at [...]

No Comments

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 [...]

No Comments

Blogging Options: CBOE Mid-Morning Update 10.16.14

With the market selling off sharply Tuesday, CBOE set records for volume in VIX Options (1.832 million), VIX Futures (791 K) , and with SPX options (~2.67million contracts).  VIX rose again, closing at a level not seen in quite a while (see Matt Moran’s blog from earlier this morning).  Overall options trading showed over 33.5 [...]

No Comments

Blogging Options: CBOE Morning Update 10.15.14

Big option and VIX Futures day yesterday as markets firmed. Volatility as an asset class Intel (INTC) is down 29c to $31.85 in the premarket on Q3 net income rising 12%. October call option implied volatility is at 35, November is at 29, December is at 24; compared to its 26-week average of 22. Bank [...]

No Comments

VIX Options Avg. Daily Volume Is Up 50% in October

Interest in volatility products and management of volatility and tail risk has increased this month.  Last week the futures on the CBOE Volatility Index® (VIX®) registered an all-time record high for one-week volume with 1,661,153 contracts.  As shown in the chart below, average daily volume for VIX options so far in October is about 50% [...]

No Comments

13 Volatility Indexes Rose More Than 10% Today

Today the S&P 500 (SPX) Index fell 31.39 to close at 1874.74, and, as shown in the table below, thirteen of CBOE’s volatility indexes rose by more than 10%. % Change            Close                     Ticker                    Index 24.0%                    27.22                     VXST                      CBOE Short-Term Volatility Index 22.6%                    66.70                     VXEWZ                 CBOE Brazil ETF Volatility Index 21.8%                    35.72                     VXXLE                   CBOE Energy Sector [...]

No Comments

The Weekly Options News Roundup – 10/10/2014

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. Trading Volatility: It’s Just The Beginning Volatility trading continues to gain traction among market participants.  In a post-Risk Management Conference interview, Paul Stephens, CBOE Vice President and [...]

No Comments

Blogging Options: CBOE Morning Update 10.10.14

World markets take hit overnight, US stock futures soft, but off pre-market lows. 10-year 2.31%, 30-year 3.04%, Oil below $85.  35K VIX futures trade in early session.  Volatility as an asset class Symantec (SYMC) is down 24c to $23.20 in the premarket after the tech company announced plans to separate into two public companies. Overall [...]

No Comments

Next Week in Weeklys – 10/13 – 10/17

There were no additions to the Weeklys list this week.  Below is a list of companies with Weeklys reporting earnings next week.  Note the list is pretty long as next week we are getting into third quarter earnings results.   I missed LVS which reports Thursday after the close, but will post those numbers when [...]

No Comments

Tomorrow’s Spot VIX Calculation Change

As all the VIXophiles out there know, beginning October 6, 2014 there is a small change to how the spot VIX index is going to be determined. Instead of the next two standard option expiration series with at least eight days remaining until expiration, the two SPX or SPX Weekly option series that expire closest [...]

No Comments

Blogging Options: CBOE Morning Update 10.3.14

September Non-Farm Payrolls rose 248K (wide range of estimates, this at the high end).  Unemployment Rate at 5.9% (6.1% August).  August Payrolls revised from 148K to 180K, July revised slightly higher. 10-year up 2 basis points to 2.46%, Gold drops $12, Euro with 125 handle. DJIA Futures look to up 100 point rise on open, [...]

No Comments

CBOE Mid-Day Update 10.2.14

Volatility as an asset class VIX methodology for Goldman Sachs (VXGS) up 1.2% to 24.79, below its 50-day moving average of 19.80. cboe.com/VXGS VIX methodology for Apple (VXAPL) up 2% to 28.79, below its 50-day moving average of 25.88. cboe.com/VXAPL VIX methodology for Amazon (VXAZN) up 3.1% to at 35.30, above its 50-day moving average [...]

No Comments

Blogging Options: CBOE Morning Update 10.2.14

Mr. Draghi keeps ECB rates unchanged.  European and Asian shares lower, oil off 1.5%.  US stock futures mixed to lower after getting hit hard yesterday.  22K VIX Futures change hands in early session after 250K trade yesterday.  US September employment report tomorrow. Volatility as an asset class: CBOE Crude Oil Volatility Index (OVX) at 22.38, [...]

No Comments

How to Budget for an Apartment

Looking to grab your own apartment? Here’s how to budget for your own place. Tips include saving for furniture, moving expenses, and how to determine exactly how much rent you can afford. My own moving expenses: http://youngfinances.com/blog/controlling-expenses-when-moving-out/  

No Comments

Blogging Options: CBOE Morning Update 9.30.14

Window Dressing Day.  EBay and PayPal hog the spotlight this morning and shift focus to tech stocks.  Hong Kong shares off another 1.25% on continued unrest.  BABA options got off to a good start with CBOE trading over 33k of 122k contracts.  Average option volume day yesterday, but VIX futures traded 228k.   Case-Shiller Home [...]

No Comments

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 [...]

No Comments

Blogging Options: CBOE Morning Update 9.29.14

US Futures down sharply, with DJIA futures off 145 points and S&P 500 futures lower by16 points.  VIX Futures have traded ~26 K contracts in the early session this morning.   Asian markets off 1.5% to 2% on unrest in Hong Kong – a reported 100k protesters in streets yesterday,  Personal Income for August higher by [...]

No Comments

The Weekly Options News Roundup – 9/26/2014

Your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast and online and social media outlets. Trader Insight Many experts in the options space began their careers as traders on the CBOE trading floor.  Tom Sosnoff, one such trader, now operates the educational website tastytrade.com.  In this Q&A [...]

No Comments

CBOE SKEW Index Hits 146.08 – Highest Value Since 1998 Shows Demand for Portfolio Protection

In a recent column on Bloomberg.com, Callie Bost wrote — “After three years of non-stop gains in the U.S. stock market, investors are loading up on insurance at the first sign of trouble. … Concern that the losses will worsen has increased demand for shorter-dated, out-of-the-money options designed to protect a portfolio’s value. The Chicago [...]