Category Archives: Market News

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Blogging Options: CBOE Morning Update 8.28.14

Traders are hearing Russian troops have entered Ukraine – or haven’t, depending on whether you are hearing Ukranian, NATO or Russian comments.  On the economic front Weekly Jobless Claims remained under 300k, unchanged from last week.  Q2 GDP first revision showed the economy grew 4.2% (original estimate +4.0%, higher than the 3.9% to 4.0% estimates), [...]

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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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Buying and Selling Waves

This market does not make life easy, does it? What we would all prefer is some predictability about the action and a few reliable patterns that show us exactly where markets are going (more on that later). It seems impossible to establish a rhythm to our trading/investing. We are unable to find the flow as markets [...]

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Blogging Options: CBOE Morning Update 8.27.14

Markets overseas fairly quiet and down fractionally.  Ukraine situation causing flight to safety with US & German Treasuries.  Record highs but light-holiday volume.  10K VIX futures in early session, pretty average volume.  Jackie Robinson West parade in Chicago today, good weather & big crowds expected.  Volatility as an asset class Tiffany (TIF) is up $2.23 [...]

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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 Mid-Day Update 8.25.14

Volatility as an asset class VIX methodology for IBM (VXIBM) up $1.21 to 14.79; below its 50-day moving average of 18.04. cboe.com/VXIBM VIX methodology for Goldman Sachs (VXGS) up 50c to 18.15; below its 50-day moving average of 18.87. cboe.com/VXGS  VIX methodology for Apple (VXAPL) up 89c to 25.24; below its 50-day moving average of [...]

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The Weekly Options News Roundup – 8/22/2014

Your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast and online and social media outlets. VIX: Broader Not Broken In this week’s Striking Price column in Barron’s, Steve Sears highlights a recent study by Goldman Sachs suggesting that “VIX is not really broken but that investors no [...]

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Blogging Options: CBOE Morning Update 8.21.14

European shares higher, as are most Asian stocks.  Oil and gold continue slide lower, grain prices increase overnight.  Weekly Jobless Claims fall below 300K to 298K, as expected. Jackson Hole comments will start trickling out today, Ms. Yellen talks tomorrow. Several economic numbers tomorrow at market opening.  Volatility as an asset class Hewlett-Packard (HPQ) is [...]

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The Mental Part of Trading

One of the things option traders and stock traders struggle with is the mental part of the game.  There is NOBODY out there who trades each day that is unaffected by the emotions displayed by the markets.  That is because the market, price action and volume are a sea of emotions displayed on a chart.  [...]

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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. [...]

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Free VIX Webcast Series – Aug 25 – 27

In just over one week The Options Institute at CBOE will be offering three free webcasts discussing different aspects of the CBOE Volatility Index or VIX. On Monday August 25th I’ll start out with the basics of volatility indexes and introducing exactly what VIX is measuring.  In addition we will look at how the index has historically behaved [...]

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The Weekly Options News Roundup – 8/15/2014

Your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast and online and social media outlets. CBOE is the New Tweet Twitter has become an invaluable tool for investors seeking market insights and near real-time financial data.  The Wall Street Journal tabbed 50 financial Twitter feeds as “must [...]

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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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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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This Week in VIX – 8/8/2014

VIX was lower on the week by about 7%. However, from the close Monday to Friday VIX actually worked a bit higher and without Friday’s very impressive rally VIX may have finished the week higher. Looking at the chart below I find the highs on Thursday and Friday pretty interesting.   The highs surpassing last week’s close [...]

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The Weekly Options News Roundup – 8/8/2014

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. Optionspalooza Lollapalooza has wrapped up for another year, and although the stages have come down and the crowds are gone, the beats are still rockin’ on in [...]

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Blogging Options: CBOE Morning Update 8.8.14

Stocks modestly higher as a news source claims Premier Putin has tweeted (?) that Russia would be agreeable to talks to settle the Ukraine tensions.  ‘overseas markets slightly lower.  Train is empty coming in to work today.  Who was that good looking guy on CBOETV yesterday talking about XSP options?   26th anniversary of the first [...]

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Next Week in Weeklys – 8/8/2014

First off, I’m well aware next week is standard August option expiration week so every company that reports has short dated options available for trading. However, with Hannah heading back to college (USC’s gain and The Options Institute’s loss), gathering all that data would probably take a couple of days. Therefore the list of stocks [...]

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CBOE Launches New S&P 500 End-Of-Month Options

Following up on an earlier CBOE Blog, CBOE recently launched the new, and long anticipated, S&P 500® End-of-Month Options. The introduction of these options stemmed from requests by asset managers who wanted an SPX option expiration that more precisely coincided with their end-of-month fund cycles and performance periods. To date the launch has been very [...]

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CBOE Mid-Day Update 8.5.14

Volatility as an asset class Target (TGT) is recently down $1.80 to $58.90 after lowering its Q2 adjusted EPS view on a data breach and discounts. August and September call option implied volatility is at 21, October is at 18; compared to its 26-week average of 18. Cablevision (CVC) is recently down 87c to $18.57 [...]

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CBOE Mid-Day Update 8.4.14

Volatility as an asset class Amgen (AMGN) is recently up $1.41 to $126.95 after the company reported its Phase 3 clinical trial ASPIRE met its primary endpoint of progression-free survival. August weekly call option implied volatility is at 22, September is at 23, October is at 21; compared to its 26-week average of 23. Michael [...]

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Valuation Trepidation – Weekly Market Outlook

Ouch.  Not that traders didn’t have an inkling the market was overbought and perhaps poised for stumble, but few saw coming the suddenness and size of Thursday’s drubbing.  However it materialized, we have no choice but to at least entertain the possibility that this is the beginning of a much more significant pullback. We’ll slice [...]

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The Weekly Options News Roundup – 8.1.2014

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. Using VIX for Protection While the CBOE Volatility Index (VIX) remains below its historical average of 20, Russ Koesterich, Chief Investment Strategist of BlackRock, suggests investors utilize [...]

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Weekly Weekly’s for 7.31.14

It’s been a wild week for earnings and it’s not over yet! Let’s look at Weekly options set to expire this Friday, August 1st and next Friday August 8th. Turning in earnings today three big names: LinkedIn, Gopro and Tesla. I’m starting with LinkedIn in the wake of Twitter taking off on much better than [...]