Approach the Russell Reconstitution With Caution

This piece originally appeared on Options Profits on Wednesday, June 19, at 8:27 a.m. Eastern time. It's a special feature from the Chicago Board Options Exchange Institute, written by Russell Rhoads, CFA. He is a financial author and editor, having contributed to multiple magazines and edited several books for Wiley publishing. In 2008 he wrote Candlestick Charting for Dummies, and he is the author of Option Spread Trading: A Comprehensive Guide to Strategies and Tactics. Russell also wrote Trading VIX Derivatives: Trading and Hedging Strategies using VIX Futures, Options and Exchange-Traded Notes. In addition to his duties for the CBOE, he instructs a graduate level options course at the University of Illinois - Chicago and acts as an instructor for the Options Industry Council.

June is usually a quiet time in the markets. Summer is beginning, second-quarter earnings are on the horizon, and the markets are expected to be calm. One thing that happens each year in June that catches the attention of some market watchers and traders is the rebalancing of the Russell indices....603 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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