Category Archives: Strategy

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Surviving Market Volatility Again

This past week was a difficult one for markets.  That is probably an understatement, as the SPX 500 fell a stunning 5% during the week, the Dow Industrials dropped more than 530 points, or more than 3%.  It was the worst week in nearly a year and set the indices back to losses in 2015.  […]






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The Eurekahedge Report highlights impressive YTD performance of Relative Value Volatility Managers

As noted in our previous blog post, CBOE® and Eurekahedge announced the launch of four new benchmark indexes that measure the performance of hedge funds that employ volatility-based investment strategies. The four new indexes: CBOE Eurekahedge Short Volatility Index CBOE Eurekahedge Long Volatility Index CBOE Eurekahedge Relative Value Volatility Index CBOE Eurekahedge Tail Risk Index […]






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The Fed and the Mindset for a Downturn

I can hear it now from someone reading the title:  ‘A HA!  this guy is finally bearish after all this time — I knew he would come around‘.  That couldn’t be further from the truth, in fact the bearish label is completely inaccurate.  I don’t like labels, as when we describe ourselves bullish or bearish […]






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Options Strategy: The Installment Collar

The collar can be expanded to create a truly creative variety. The traditional collar (own 100 shares, sell 1 covered call, and buy 1 put) can be turned into a long-term protective version: buy 100 shares sell one very short-term covered call, maximizing annualized income as the result of time decay, picking a strike higher […]






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Annualizing Covered Call Returns For Consistency

When writing covered calls, it’s important to accurately compare one expiration to another, to make certain that your analysis is accurate based on both rate and time. You can compare annualized returns under the following guidelines: Make all yield comparisons to the strike. Use the strike for consistency, based on the rationale that if exercised, […]






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Options Strategy: Swing Trading With Variable Weighting

Using options to focus more on either uptrend or downtrend is an effective method for augmenting the swing itself. The strategy assumes that you have an opinion about the prevailing direction of movement in the underlying, and that momentum confirms your opinion. So as a starting point, you can coordinate a weighting decision by checking […]






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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 […]






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Bullish SPX Trading Strategies

SPX was trading at 2068.76 on July 6th. There were 47 days until the August 21st expiration. You believe that there will be a 3% upward move in the S&P between now and then. That would mean a move up to 2130. There are a number of different bullish strategies that would benefit from a bullish move. […]