Tag Archives: volatility

No Comments

So Much To Worry About – Really?

Are there no shortage if things market players need to worry about?  It’s amazing how long that ‘wall of worry‘ has been up.  Yet, the market doesn’t seem to be showing it, in fact we are seeing high complacency exist, which may not be a good thing over the long haul.  But I have to […]






No Comments

Day Three Agenda: CBOE Risk Management Conference March 6th

Day Three of the 31st Annual CBOE Risk Management Conference (RMC) on March 6th at the Hyatt Aviara in Carlsbad, California, has a terrific lineup scheduled.  RMC is well known as the premier educational forum for option professionals looking to enhance their knowledge on using equity derivatives and volatility products to manage risk.  This three-day […]






No Comments

Is Volatility Over Priced?

We’ve seen this movie before. Different actors. Different setting. But it’s the same old formulaic screen play. … And we know how it ends. Every so often, a controlled problem arises that leads to opportunities in the market. Like, remember the Y2K bug panic in December of 1999?  Panicked investors where buying up options to […]






No Comments

The Collapsing VIX and the Rise of New Options Trader

Traditionally, professional options traders choose to utilize options because of the advantage provided by volatility. Volatility traders (“vol traders”), those who are always selling options to take advantage of the convergence of volatility and Theta (time) decay, are seen as the smartest guys in the room. They capitalize on the complex pricing of options, essentially […]






No Comments

Agenda for CBOE RMC Europe 2013 Is Now Available

The CBOE Risk Management Conference – Europe will be held at the Penha Longa Resort (near Lisbon, Portugal) on September 30th through October 2nd ,2013. The agenda and registration link for RMC Europe now are posted at http://www.cboermceurope.com/agenda EXPERT SPEAKERS Here are some of the many expert speakers who will share insights at RMC Europe […]






No Comments

“Tale of the Tape”: Trading Facebook’s Earnings

Last week Facebook (FB) gave us an ideal case study in which to analyze the inner workings of options and the options market place during an earnings release. FB was scheduled to release earnings post market Wednesday, May 1st.  Knowing that earnings would be highly watched and scrutinized by both retail and institutional traders I […]






No Comments

What Does the VIX Tell Us?

The volatility in the S&P surged to over 20 in the midst of the uncertainty of the fiscal cliff. Now that’s settled the VIX has plunged. However, Americans are getting their first paycheck of 2013 and noticing it’s a bit less than it was in 2012. Wait, I thought the tax hike was only for […]






No Comments

Bullish Customer VIX Trade Today

With the CBOE Vix November Futures trading 18.35 (higher than Cash VIX near 17.90), we saw a large order in the CBOE’s Vix Pit. An institutional customer bought 18,000 CBOE Vix November 21 Strike Calls for $1.225. Lets break this trade down: Trade: Buying the Vix Nov 21 Calls for $1.225 Directional Stance: Bullish Risk: $122.50 […]






No Comments

All Ready for a BIG Earnings Season?

Third quarter earnings season is underway and a huge amount of names will divulge their results this coming week.  I love the start of earnings, so much uncertainty (and usually some negativity) that at least I get some sort of leg up analyzing the chart and technical picture. This is an important earnings season, we’ll find […]






No Comments

Record VIX Futures Volume Today

Earlier this week (Tuesday) we witnessed record volume in VIX Options and now the VIX Futures trading at the CBOE Futures Exchange have followed suit.  The CFE experience a record volume day of its own with strong volume in the VIX Futures arena. At the CFE just over 190,000 VIX Futures were traded shattering the […]






No Comments

Ths Week in Emerging Market Volatility

Emerging markets were strong along with other global equity markets this week. The iShares MSCO Emerging Markets Index ETF (EEM – 40.64) moved up by about 3.5% and volatility dropped with VXEEM losing 12%. This is basically a round trip over the past two weeks for VXEEM having gained 12% the week before. The September […]