BigTrends.com Latest Blogs tagged 'CBOE'

CBOE Expands Weekly Options

Price Headley — Fri, 23 Jul 2010 05:00:00 +0100

The CBOE is expanding their Weekly Options program. These are options that have a duration of 1 week, hence "Weeklys". Recently, the CBOE changed the issuing of new weekly options so that they begin trading every Thursday and expire the following Friday.

Several major indexes have these options available, such as the SPX and OEX. Newly added are some major equities -- the latest CBOE data shows the following stocks and ETFs are now available on weekly options:

Stocks [...]

No Panic Seen Yet in the Put/Call Ratios

Price Headley — Tue, 08 Jun 2010 05:00:00 +0100

Despite the market selloff, the latest leg of which began last Friday, we haven't seen an appreciable rise in the CBOE and ISE Equity Put/Call Ratios. We track these nightly along with other important indicators in BigTrends Trader's Edge (call 1-800-244-8736 for information on Trader's Edge).

The chart below has an overlay of the S&P 500 Index ETF (SPY) on the top, followed by the CBOE Equity Put/Call Ratio and the ISE Equity Put/Call Ratio with Bollinger Bands. Norma [...]

Option Volume Hits Extreme Level: Bottom Likely

Andrew Hart — Thu, 21 Jan 2010 05:00:00 +0100

For those of you that receive our nightly Trader's Edge Report you know the importance of sentiment in the market place--investor sentiment can help you determine when the so called fear and greed on Wall Street is primed for reversal. In my trading Iconsistently use four different sentiment tracking charts, (1) CBOE Volatility Index, (2) CBOE Equity Put/Call Ratio, (3) RYDEX Ratio, and (4) ISE Call/Put Ratio. Each has it's own unique system to highlight market reversals (covered each nig [...]

Lowest Put/Call Ratio since July 2007

Moby Waller — Mon, 10 Aug 2009 05:00:00 +0100

Friday's CBOE equity only Put/Call Ratio came in at 49%. This basically means that twice as many Calls were traded as Puts. This is a fairly extreme reading, with a very high level of Call buying.

Looking back at historical data (from the CBOE.com website), the most recent reading that was lower than 49% was on July 12, 2007. What happened after the July 2007 reading? If you look at the chart below, you can see that the market moved lower shortly after ... and [...]

Yesterday's VIX Move Examined

Moby Waller — Thu, 16 Jul 2009 05:00:00 +0100

Yesterday the S&P 500 Index (SPX) gained about 3%, while the CBOE Volatility Index (VIX) also gained over 3%. This is an unusual dichotomy, because volatility usually goes down when the market rallies.

Alan Farley's comments on this:

"The S&P 500 and VIX have risen in tandem 26 times since August 2007, including yesterday's 3.48% VIX gain, coupled with a 2.96% S&P rally.
In the follow session, the S&P has fallen 18 times for an average lo [...]