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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: 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.** (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. 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. 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. 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. 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. **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.  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….

John Lothian Newsletter: Tokyo Exchange Merges With Osaka to Form World’s No. 3; Overnight futures trading suspended due to system failure; Libor arrests signal switch to individuals Standard

Tokyo forms world’s third largest exchange.  Technical problems with South Korea’s futures market.  Libor investigation going after invdividuals.

JLN Options: Know Your Options: If You Build It, They Will Come Standard

Lead Stories Know Your Options: If You Build It, They Will Come Joy Rosenstein – Fidessa Corporation (via TABB Forum) As buy-side traders increasingly embrace options both as a profit-making strategy and as a way to hedge their portfolios, broker-dealers must add options-trading capabilities to remain competitive. Here are 5 questions firms must answer before building an options offering. ‘Bernanke Put’ is Back in Play Kaitlyn Kiernan – The Wall Street Journal The so-called “Bernanke Put” is back in play… The idea is that Mr. Bernanke and those policies will protect the market against downturns, much as put options,…

John Lothian Newsletter: A Trillion Dollar Source Of New Funding? The SEC’s New ‘Reg D’; U.S. Regulators Approve Stricter Trading Rules Overseas; Downside of a British E.U. Exit Standard

SEC ruling should help funding for early-stage ventures.  Regulators get compromise on cross-border regulations.  If Britain leaves the EU London may feel the pinch.