Vol411 for Thursday, November 12, 2020

Host: Jermal Chandler, Senior Instructor, Cboe Options Institute

· There is dispersion in the market as traders try to figure out new U.S. government policies for 2021. The dispersion is leading to a lot of reds and greens in S&P 500 Index sectors as stocks move up and down, rotating in and out of value and growth.

· Bank research desks are updating their year-end and 2021 targets around the S&P 500 Index and the 10-year yield.

· Initial jobless claims fell by the most in five weeks today while COVID-19 cases are on the rise.

· The VIX Index is in the mid-20s, and the number of closing trades is up this week. The VIX futures curve still has strong contango in the front with a new peak in January, around Inauguration Day.

· VIX options put volume is still trending. Today, 11,000 December 20 VIX options puts traded for $0.68 each, and a buyer bought 8,000 November 22 VIX options puts for $0.36 each.

To learn more visit Cboe’s website.

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