Category Archives: Trader Talk

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The Weekly Options News Roundup – 12/19/2014

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. CBOE’s Index Options Go Global As announced last week, CBOE has entered into a licensing agreement with MSCI to offer options trading on multiple MSCI Indexes, including […]

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CBOE Mid-Day Update 12.19.14

Volatility as an asset class CarMax (KMX) is recently up $5.76 to $66.29 on better than expected Q3 results and customer traffic growth. January call option implied volatility is at 28, April is at 31; compared to its 26-week average of 32. Finish Line (FINL) is recently down $5.63 to $23.28 after lowering its earnings […]

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Next Week in Weeklys – 12/22/2014

I almost made the title of this blog, This Week in Weekly since there is only one stock with short dated options available for trading that reports earnings during the holiday shortened week next week.  Walgreens (WAG) will report before the market opens on Wednesday.  Over the past three years the biggest gain off earnings […]

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CBOE Mid-Day Update 12.18.14

Volatility as an asset class Oracle (ORCL) is recently up $3.40 to $44.56 after Q2 results beat estimates as Q2 total software plus cloud revenue grew 5% to $7.3B. December call option implied volatility is at 26, January is at 21, February is at 19; compared to its 26-week average of 21. Cloud software-as-a-service, platform-as-a-service […]

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CBOE Mid-Day Update 12.17.14

Volatility as an asset class Proshares UltraShort Barc 20 Year Treasury ETF (TBT) is recently up 66c to $46.22 into the FOMC policy statement.  December call option implied volatility is at 37, January is at 27, March is at 26; compared to its 26-week average of 24. IShares Barclay 20+ YR Treasury ETF (TLT) is […]

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CBOE Mid-Day Update 12.16.14

Volatility as an asset class iPath S&P GSCI Crude Oil Total Return (OIL) is recently up 22c to $13.26 as WTI crude oil trades above $56.  Overall option implied volatility of 60 compares to its 26-week average of 25. Energy Select Sector SPDR (XLE) is recently up $2.09 to $75.49. December call option implied volatility […]

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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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Blogging Options: CBOE Morning Update 12.12.14

November PPI fell 0.2% (gasoline accounted for over half of the drop – flat expected) Core Rate was flat.  Oil being hammered again ON IEA lowering oil price forecast again.  Overseas markets down sharply, US following.  Jan WTI trading $58.50.  10-year near 2.12%. VIX Futures active in pre-market with 59K contracts traded.  Volatility as an […]

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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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Next Week in Weeklys – 12/15/2014

*Graphic corrected to show NAV reporting Tuesday before the open. The year is quickly coming to an end, but there are still a handful of opportunities to trade earnings reports.  Things don’t get started next week until Wednesday before the open with FedEx (FDX).  All numbers below are based on the last 12 quarters earnings […]

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CBOE Mid-Day Update 12.10.14

Volatility as an asset class Las Vegas Sands (LVS) is recently down $1.94 to $54.17 after FBR lowered its estimates for LVS, Wynn Resorts (WYNN) and MGM Resorts (MGM) citing the 20% decline in Macau gross gaming revenue in November and a “soft” first week of December.  December call option implied volatility is at 36, […]

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Blogging Options: CBOE Morning Update 12.10.14

Economic news overseas not great this morning, but overseas markets steady (Asia mixed, Europe fractionally higher) after yesterday’s selloff.  Metals lower, 10-year 2.22%.  Chicago baseball fans prepare for subway series after signing pitchers.  Volatility as an asset class: Costco (COST) is up $1.50 to $144.54 in the premarket after reporting better than expected Q1 EPS […]

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CBOE Mid-Day Update 12.9.14

Volatility as an asset class Bank of America (BAC) is recently down 32c to $17.34 on the bank sees Q4 sales and trading revenue down linked-quarter, y/y. December call option implied volatility is at 19, January and February is at 20; compared to its 26-week average of 23. Citigroup (C) is recently down $1.19 TO […]

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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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CBOE Mid-Day Update 12.8.14

Volatility as an asset class Large Cap oil Services Company’s volatility is elevated as WTI Crude oil trades near $65 Baker Hughes (BHI) overall option implied volatility of 34 compares to its 26-week average of 28. Dril-Quip (DRQ) overall option implied volatility of 35 compares to its 26-week average of 29. Halliburton (HAL) overall option […]

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CBOE Volatility Update 12.4.14

Volatility as an asset class Sears Holdings (SHLD) is recently down 55c to $33.73 after reporting a Q3 loss of $5.15 per share on larger debt levels. December call option implied volatility is at of 67, January is at 70, March is at 65; compared to its 26-week average of 58. Kroger (KR) is recently […]

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CBOE Mid-Day Update 12.3.14

Volatility as an asset class Energy indexes and ETF option implied volatility decreases three-year highs as energy prices stabilize Energy Select Sector SPDR (XLE) is recently up 1.13 to $82.13. December weekly call option implied volatility is at 39, December is at 24; compared to a level of 27 from December 2 and its 26-week […]

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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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CBOE Mid-Day Update 12.1.14

Volatility as an asset class Energy indexes and ETF option implied volatility has increased on wide oil and gas price movement. Energy Select Sector SPDR (XLE) December weekly call option implied volatility is at 39, December is at 30; compared to its 26-week average of 18. Oil Services Holders Trust (OIH) December weekly call option […]

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Blogging Options: CBOE Morning Update 11.28.14

Other than Black Friday shopping, Oil the talk of Wall Street.  OPEC failed to reach an agreement on a token production cut, WTI Crude at $69.40 per bbl.  This dragging the  S&P lower in early trading,  DJIA Futures flat, NASDAQ slightly higher.  Airlines shares soaring, drillers and majors down.  Gold down 1%, Silver off 3%.  […]

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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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CBOE Mid-Day Update 11.26.14

Volatility as an asset class Deere (DE) is recently down 75c to $87.08 after reporting stronger than expected Q4 results, analysts believe that the company’s guidance indicates that demand for large farm equipment will continue to drop in FY15.  December weekly call option implied volatility is at 14, December is at 15, January at 19, […]

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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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CBOE Mid-Day Update 11.25.14

Volatility as an asset class Chico’s FAS (CHS) is recently up 32c to $16.14 after the casual retailer reported Q3 gross margins increased 54%. December call option implied volatility is at 29, January is at 28, February is at 26; compared to its 26-week average of 35. Hormel Foods (HRL) is recently down $2.19 to […]

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The Weekly Options News Roundup – 11/21/2014

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. Futures on the Interest Rate VIX One week ago, CBOE Futures Exchange launched trading of futures on the CBOE/CBOT 10-year U.S. Treasury Note Volatility Index.  Futures on […]

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CBOE Mid-Day Update 11.21.14

Volatility as an asset class Euro Currency Trust (FXE) is recently down $1.31 to $122.25 after Mario Draghi announced that the ECB is ready to expand its asset purchase programs. Overall option implied volatility of 8 is at its 26-week. Foot Locker (FL) is recently down $1.50 to $55.49 after reporting Q3 EPS 83c, compared […]

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Blogging Options: CBOE Morning Update 11.21.14

China cutting rates and comments by the ECB have stocks soaring in early trading.  Asian stocks up modestly, European shares up 1% to 2%.  ECB buying Asset-Backed Securities but unclear as to type.  Dollar up again, Oil and Metals also higher.  Several Retailers reporting good sales this morning.   VIX Futures off ~2% in premarket trading […]

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CBOE Mid-Day Update 11.20.14

Volatility as an asset class GoPro (GPRO) is recently down $4.90 to $74.24 after files to sell $800M in common stock for holders . November weekly call option implied volatility is at 67, December is at 58, January is at 53; compared to its 15-week average of 56. El Pollo LoCo (LOCO) is recently down […]

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CBOE Mid-Day Update 11.19.14

Volatility as an asset class Tesla Motors (TSLA) down $10.51 to $247.10 after Morgan Stanley took down estimates for the company, though they noted they remain buyers. November call option implied volatility is at 45, December is at 35, January is at 37; compared to its 26-week average of 46. Staples (SPLS) is recently up […]

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CBOE Mid-Day Update 11.18.14

Volatility as an asset class Home Depot (HD) is recently down $1.73 to $96.30 after reporting in line Q3 EPS of $1.15 and mixed 2015 guidance. November call option implied volatility is at 19, December is at 18, January is at 16; compared to its 26-week average of 18. Medtronic (MDT) is recently up $2.66 […]

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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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CBOE Mid-Day Update 11.17.14

Volatility as an asset class iShares MSCI Japan Index Fund (EWJ) is recently down 20c to $11.58 as Japan slipped into recession. Overall option implied volatility of 20 compares to its 26-week average of 16. American Express (AXP) is recently down 72c to $89.96 after reporting October net write-off rate 1.3% vs. 1.2% last month. […]

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Weekly Options News Roundup 11/14/14

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. Futures on the Interest Rate VIX are Here!!! Futures on the CBOE/CBOT 10-Year US Treasury Note Volatility Index (VXTYN) debuted on the CBOE Futures Exchange (CFE) yesterday.  […]

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CBOE Mid-Day Update 11.14.14

Volatility as an asset class Geron (GERN) is recently up 59c to $2.90 after announcing a global strategic collaboration with Janssen Biotech. November call option implied volatility is at 116, December is at 99, January is at 88, March is at 97; compared to its 26-week average of 106. Harley-Davidson (HOG) is recently up 88c […]

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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 […]