All Entries Tagged With: "CBOE"
Implied Correlation: Enough Open Interest to Measure?
Thanks to Adam Warner at the Daily Options Report for linking to my article on CBOE’s implied correlation data – and my own “weighted” average of this data. The implied correlation indices measure the correlation between the implied volatility of long-term S&P 500 index options and the implied volatilities of long-term options for the top [...]
Implied Correlation At Record Highs
I don’t think many traders follow the CBOE’s implied correlation index, but lately it’s been on the rise. The implied correlation index (actually a set of two indices) compares the implied volatility of S&P 500 options (the VIX) to the implied volatilities of options for individual stocks within the S&P 500 index. For example, on [...]
Would Daily Options Be an Option for You? (CBOE)
First it was monthly options. Then came weekly options expiration dates. If there is a way to bet on it, Wall Street will figure out a way to butcher it further it seems. Soon, the options world may get to digest daily options expiration dates. Really? Yes, really. The Wall Street Journal reported on Wednesday [...]
More “Weekly” Options on the Way (CME, CBOE)
Data and opinion on just how successful the new weekly stock and index options are is still a work in progress. Opinion aside, the recent CBOE Holdings (NASDAQ: CBOE) move to introduce weekly stock options in addition to regular “old-way” options that expire on the third Friday of each month is about to get some [...]
The Put/Call Ratio: What Options Traders Are Thinking
Andrew Hart’s recent article “Options Traders Call for Market Sell-Off” demonstrates how traders use the put/call ratio – a measurement of the number of put options traded relative to call options. This is generally viewed as a contrarian indicator. More calls being traded is often viewed as a short-term bearish signal, while more puts being [...]
CBOE: Please Add “Mini” Options To Expensive Stocks
Tony made a good point on my last post on expensive stocks: I would imagine lower stock prices would make certain options strategies (like covered calls) more approachable for some investors. It sure would – and that’s why I’m asking the CBOE to introduce “mini-options.” A company like Google (GOOG) may never want to split [...]
New Weekly Options for Microsoft and Gold Miners ETF (MSFT, GDX)
As follow up to an earlier update, CBOE announced that Weeklys options expiring August 13 will be available for these stocks and ETFs: ETFs EEM – iShares MSCI Emerging Markets Index FAS – Direxionshares Daily Financial Bull 3X Shares FAZ – Direxionshares Daily Financial Bear 3X Shares GLD – iShares SPDR Gold Trust GDX – [...]
Weekly Options Update: CBOE Adds New Stocks and ETFs
It seems as if the Chicago Board Options Exchange (CBOE) is making weekly changes to its new “Weeklys” options. These are short-term options that are listed each week and that expire in about 7 days, as mentioned in this earlier post. There’s a link on the CBOE site called “Available Weeklys,” but it makes you [...]
Weekly Options: Stocks “Pinned” Every Friday?
As an options expiration day arrives, traders note that stocks sometimes get “pinned” to a specific strike price. But now that every week is an expiration week for a select group of stocks and ETFs, will we see this phenomenon every Friday? As mentioned in an earlier post, the CBOE has added weekly options covering [...]
When VIX and VXV Get Out of Whack
Everyone seems to be watching the VIX these days, but there’s another market indicator I like to watch: the VIX/VXV ratio. The VIX, is of course, the CBOE Volatility Index. This measures the implied volatility of S&P 500 options expiring in about one month. For more on this, see my previous post: “Does the VIX [...]
