Category Archives: Trader Talk

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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 [...]

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CBOE Mid-Day Update 11.13.14

Volatility as an asset class Kohl’s (KSS) is recently down $2.11 to $55.80 after reporting less than expected Q3 results and issued a less than expected Q4 outlook. November call option implied volatility is at 25, December is at 21, January is at 20; compared to its 26-week average of 25. Tyco (TYC) is recently [...]

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CBOE Mid-Day Update 11.11.14

Volatility as an asset class SPDR Gold Trust (GLD) is recently up $1.10 to $111.53 as gold slips lower. November weekly call option implied volatility is at 23, November is at 19, December is at 20; compared to its 26-week average of 15. Groupon (GRPN) is recently up 22c to $7.65 after reporting 53M total [...]

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CBOE Mid-Day Update 11.10.14

Volatility as an asset class Teucrium Corn Fund (CORN) is recently up 23c to $25.96 amid USDA lowering corn production forecast by 68M bushels.  Overall option implied volatility of 24 is near its 26-week average of 23. Teucrium Soybean Fund (SOYB) overall option implied volatility of 25 compares to its 26-week average of 23. Teucrium [...]

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The Week in Russell 2000 and Nasdaq-100 Volatility – 11/3 – 11/7

I’m going to start with the Nasdaq-100 because I have a lot more to say about Russell 2000 volatility this week. VXN was down about 6% despite the underlying market rising only a little last week. This is one of those time periods where VXN and RVX both appear to take the lead from VIX more than in reaction to [...]

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CBOE Mid-Day Update 11.7.14

Volatility as an asset class Sears (SHLD) is recently up $9.29 to $41.94 after saying company is actively exploring a REIT transaction involving 200-300 owned properties through a rights offering. November call option implied volatility is at 82, December is at 74; compared to its 26-week average of 56. Gap (GPS) is recently up $1.19 [...]

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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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CBOE Mid-Day Update 11.6.14

Volatility as an asset class Whole Foods (WFM) is recently up $4.25 to $44.21 after the super market chain’s Q4 profit surpassed analysts’ consensus estimates and it raised its quarterly dividend. November call option implied volatility is at 24, December is at 23, January is at 21; compared to its 26-week average of 33. Zillow [...]

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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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CBOE Mid-Day Update 11.5.14

Volatility as an asset class Nu Skin Enterprises (NUS) is recently down $7.03 to $42.53 after the nutrition company announced a less than expected Q4 outlook. November weekly call option implied volatility is at 100, November is at 55, December is at 63, January is at 50, March is at 54; compared to its 26-week [...]

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Blogging Options: CBOE Morning Update 11.05.14

US stock futures higher on Republican Senate victory last night. Some voters in Chicago finished voting at 3:00am due to new voting rules implemented at the last minute. Those in line for 5 to 8 hours get our admiration.  Illinois elected a Republican Governor in a big upset.  Talking heads on the business channels will [...]

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CBOE Mid-Day Update 11.4.14

Volatility as an asset class Herbalife (HLF) is recently down $11 to $44.89 after the nutrition company reported weaker than expected Q3 results and estimated that its sales would decline in Q4. November weekly call option implied volatility is at 114, November is at 108, December is at 92, January is at 94; compared to [...]

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CBOE Mid-Day Update 11.3.14

Volatility as an asset class American Realty Capital Properties (ARCP) is recently down 58c to $8.28 after RCS Capital (RCAP) terminated its agreement to acquire Cole Capital Partners and Cole Capital Advisors from the company. November call option implied volatility is at 79, December is at 76, January is at 72; compared to its 26-week [...]

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CBOE Mid-Day Update 10.31.14

Volatility as an asset class Exxon Mobil (XOM) is recently up $1.44 to $95.87 on Q3 earnings increasing 2.5% on higher refining margins. November weekly call option implied volatility is at 15, December is at 14, January is at 13; compared to its 26-week average of 18. Chevron (CVX) is recently up $1.41 to $118.65 [...]

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Blogging Options: CBOE Morning Update 10.31.14

BOJ cranked up QE again, pushing overseas shares higher.  Personal Income up 0.2% in September (+0.3$ August), Spending off 0.2%.  Omega bids for AVIV shares.  XOM earned $1.89 vs. $1.71, Chevron (CVX) reported a gain of $2.95 vs. $2.55.  CVX revenues dropped $3.5B for the quarter, both companies helped with downstream (refining) as oil prices [...]

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CBOE Mid-Day Update 10.30.14

Volatility as an asset class MasterCard (MA) is recently up $5.62 to $81.60 on better than expected Q3 results and outlook. November call option implied volatility is at 23, December is at 18, January is at 17; compared to its 26-week average of 24. Weight Watchers (WTW) is recently down $4.51 to $24.91 on commentary [...]

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Post Election VXEWZ Analysis

On Monday the Brazilian equity market reacted somewhat as expected to the re-election of Dilma Rousseff to another term as president of Brazil. When I say as expected, Rousseff is not considered very business friendly and her election resulted in about a 4% drop in the iShares MSCI Brazil Index ETF (EWZ).   This 4% drop [...]

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CBOE Mid-Day Update 10.29.14

Volatility as an asset class Electronic Arts (EA) is recently up $1.50 to $38.93 after the company’s Q2 earnings per share and revenue topped analysts’ estimates. November and December call option implied volatility is at 33 and January is at 31; compared to its 26-week average of29. Gilead (GILD) is recently down $3.42 to $110.83 [...]

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CBOE Mid-Day Update 10.28.14

Volatility as an asset class The Medicines Company (MDCO) is recently up $2.94 to $25.13 after announcing the results of the pivotal Phase III clinical trial of the investigational hemostatic agent RAPLIXA, formerly known as Fibrocaps. November call option implied volatility is at 53, December is at 46, January is at 41; compared to its [...]

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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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CBOE Mid-Day Update 10.21.14

Volatility as an asset class Coca-Cola (KO) is recently down $2.53 to $40.76 following earnings that were in line with expectations, but guidance that disappointed. October weekly call option implied volatility is at 27, November is at 16, January is at 14; compared to its 26-week average of 17. Harley-Davidson (HOG) is recently up $3.59 [...]

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Blogging Options: CBOE Morning Update 10.21.14

Several earnings reports at the opening.  MCD is off $0.75 after missing, VZ lower by $0.50, KO down $2.00.  Oil & Gold higher.  US markets open slightly higher.  Ed Tilly welcomed students from Drake School in Chicago to the SPX yesterday after the close.  CBOE is involved in a tutoring program with volunteers from the [...]

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CBOE Mid-Day Update 10.20.14

Volatility as an asset class IBM (IBM) is recently down $12.25 to $169.80 after reporting a 4% decrease in quarterly revenue and no longer expects ‘at least’ $20 operating EPS in 2015. October weekly call option implied volatility is at 31, November is at 20, January is at 19; compared to its 26-week average of [...]