How to Leverage Social Media to Your Advantage

Cboe Blog
September 12, 2019

As presidential candidates prepare to take the debate stage again tonight, we’re almost certain social media will be a buzz with “hot takes,” praise, criticism and conversation. We’ve seen how the president’s Tweets can impact our markets, but he’s not the only influential person using Twitter. Cboe realized the influence social media can have on our world and launched a social media-based strategy benchmark indexes to track it in 2016—a pivotal year in U.S. politics!

The Cboe SMA (Social Market Analytics) Large Cap Weekly Index — otherwise known as the SMLCW Index —is designed to capitalize on short-term market momentum based on Social Market Analytics’ social media metrics. It tracks the return of a hypothetical portfolio strategy designed to monetize the information in SMA S-Scores. SMA derives actionable signals that quantify market sentiment regarding stocks from social media data streams. S-Scores express rising or declining sentiment for different stocks.

As social media’s relevance grows, so does the SMLCW.

“The Cboe-SMA SMLCW Index has been harnessing the power of Twitter to predict stock prices for the last 5 years,” says Joe Gits, CEO and Co-Founder of Social Market Analytics. “We have built a track record of outperformance that includes the Tweets of professional investors. Twitter is a leading indicator of performance and this index illustrates that.”

As more politicians, business leaders and popular influencers take to social media to make voice their heard, Cboe’s SMLCW becomes a greater tool to gain insights into market reactions to a range of opinions.

To learn more visit