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Author Archives: Jeff Bergstrom

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Bergstrom is chief information officer of John J. Lothian & Co. He edits MarketsWiki and JLN Options.

JLN Options: Options Traders Already Casting Eyes on September Fed Meeting Standard

LEAD STORIES Options Traders Already Casting Eyes on September Fed Meeting  Kaitlyn Kiernan – The Wall Street JournalIt’s still July, but options traders are already looking ahead to September.The focus is the Federal Reserve’s policy-setting meeting Sept. 17-18, a meeting that some in the market believe could bring a decision by the central bank to scale back on its easing efforts. That, options traders think, could also bring a surge heightened moves in the stock market.http://jlne.ws/19vt893 Stocks barely budge as investors wait for FedKatie Lobosco – CNN MoneyU.S. stocks barely moved Tuesday, as investors cautiously awaited the latest from the Federal…

JLN Options: ISE to Launch Options Industry’s 12th Exchange Next Week Standard

LEAD STORIES ISE to Launch Options Industry’s 12th Exchange Next WeekKaitlyn Kiernan – The Wall Street JournalDeutsche Boerse AG’s (DB1.XE, DBOEF) International Securities Exchange received Securities and Exchange Commission approval to launch its second U.S. options exchange, the exchange operator said Monday.http://jlne.ws/14ecuJY**Press release from ISE below under “Exchanges”. – JB VIX Futures to Trade in Extended Hours by September After DelayNikolaj Gammeltoft – BloombergThe CBOE Futures Exchange LLC will expand trading hours for futures linked to the benchmark gauge for U.S. options prices by late September after delaying the move following a trading outage earlier this year. http://jlne.ws/14ecE40  OCC Announces…

JLN Options: CBOE plans to buy LiquidPoint Standard

Editor’s Note:  There will be no JLN Options Newsletter tomorrow (Friday, July 26, 2013) due to a company retreat.  We will be back on Monday,  July 29. LEAD STORY CBOE plans to buy LiquidPointLynne Marek – Crain’s Chicago BusinessCBOE Holdings Inc., the biggest U.S. options exchange, plans to acquire the LiquidPoint LLC options technology unit of ConvergEx Group LLC, Crain’s has learned.The deal isn’t complete — the price appears to be still up in the air — but the acquisition would be CBOE’s first of an independent technology provider.http://jlne.ws/1dY8RGz Volatility Traders: BewareJared Woodard – MoneyShow.comIn an environment of rising rates,…

JLN Options: Traders in Onyx in SEC insider case surface, claim innocence Standard

LEAD STORIES Traders in Onyx in SEC insider case surface, claim innocenceJonathan Stempel – ReutersTwo previously unnamed defendants have come forward in a U.S. Securities and Exchange Commission civil lawsuit over alleged insider trading in Onyx Pharmaceuticals Inc while the company was mulling a takeover bid, and said they did nothing wrong.http://jlne.ws/18DpIl9** (I know a guy who knows a guy…) Dark Helmet: I am your father’s brother’s nephew’s cousin’s former roommate.Lone Star:  What’s that make us?Dark Helmet: Absolutely nothing!  (From the movie Spaceballs) CME Group Announces New Gold Options Open Interest RecordsCME Group, the world’s leading and most diverse derivatives marketplace,…

JLN Options: ‘Low Volatility’ Investing: It’s Not ‘No Volatility’ Investing Standard

LEAD STORIES ‘Low Volatility’ Investing: It’s Not ‘No Volatility’ InvestingBrendan Conway – Barron’sYour exchange-traded fund wears a comforting label: “Low volatility” or “minimum volatility.” Be aware that such funds can still fall hard and fast. They can even fall harder than the good ‘ole S&P; 500 some of the time. http://jlne.ws/14DZxIq Volatility Tumbles From Currencies to Stocks on Growth PledgesLucy Meakin and Emma Charlton – BloombergBusinessweekMeasures of price swings in the foreign-exchange, bond and equity markets dropped to the lowest levels in about two months as policy makers from China to the U.S. pledged to support global growth.http://jlne.ws/14E28C8 Nasdaq Cancels…

JLN Options: The Wilting Flower of VIX Standard

Lead Stories The Wilting Flower of VIX Andrew Giovinazzi – The Options Insider Wither the VIX The market for volatility seems to be giving up its final breaths today.  If underwhelming earnings in GOOG and MSFT cannot push things lower I am running out of things to think of. http://jlne.ws/1bGyUW2 Everyone’s Talking About This Huge Stampede Of Cash Rushing Into The Stock Market Joe Weisenthal – Business Insider As the market sails to new highs, the floodgates have broken open. Money is pouring like crazy into stocks, which is of course classic investor psychology. Nobody buys low. People like to…

JLN Options: The Two Problems With the VXX Standard

Lead Stories The Two Problems With the VXX Adam Warner – Schaeffer’s Investment Research The iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX) hit new lows yesterday! In other breaking news, it was hot and it was a Thursday and… we really need the MLB All-Star break to end, as this is clearly the worst sports week of the year. http://jlne.ws/1dKqh9x FX could move to financial settlement under clearing pressure – GFXD’s Lam Joel Clark – Risk Magazine More foreign exchange derivatives could move towards financial rather than physical settlement in the coming years if the market fails to find…

JLN Options: Investors Show Confidence That New Stock Market Calm Will Linger Standard

Lead Stories Investors Show Confidence That New Stock Market Calm Will Linger Kaitlyn Kiernan – The Wall Street Journal With the stock market resuming its rally after a bout of indigestion caused by worries about the outlook for Federal Reserve policy, options investors appear to be thinking the calm will last. As stocks have pushed back into record territory and the Chicago Board Options Exchange’s Volatility Index has declined over the last three weeks, far fewer investors are placing bets that the quiet will be short-lived and the VIX will spike higher. http://jlne.ws/1dF8kJD **At last glance the VIX was down…

JLN Options: The Others and the VXEEM Standard

Lead Stories The Others and the VXEEM Andrew Giovinazzi – The Options Insider The EEM has been in the dustbin since mid-spring when the first hints went down that the Fed might take the foot off the gas pedal.  Mechanical Panic ensued.  I wrote about it in late June and I think it is time to take another look.  Why do you ask?  Well timing and opportunity and lower IV. http://jlne.ws/10YGrtn  Land Mines in the Derivatives ‘Path Forward’   Hal Scott – The Wall Street Journal The U.S. and EU will coordinate trading rules, but the clearinghouses are a potential danger….