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Author Archives: Spencer Doar

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Graduate of University of Minnesota School of Journalism and Mass Communication

The Spread – Record Highs – 9/21 Standard

To put it bluntly, action in marijuana stocks this week was nuts.   Stories referenced in this week’s episode of “The Spread” are as follows:  Cboe Blog -> Cboe SKEW Index Tops 150 for Record Four Straight Trading Days; Some Cite Surge in Black-Swan Hedging Bloomberg -> It’s Never Been More Expensive to Hedge Against Falling Pot Stocks Reuters -> Tilray options on fire as pot-stock frenzy grips market Bloomberg -> Pot Frenzy Has Options Traders Piling In Produced by Mike Forrester    

China copper options a challenge to NY, London; October volatility Standard

Lead Stories In copper options debut, Shanghai sets challenge to New York, London Josephine Mason – Reuters China’s top state copper companies threw their weight behind Shanghai’s first copper options on Friday, with early turnover trouncing its New York rival and raising a challenge to the 141-year-old London bourse in the $270 billion global market. /reut.rs/2I3aiLk ****SD: Pretty stellar first day as far as product launches go. A New Understanding of October Volatility Steven Sears – OCCAM October is more than just a seasonal hobgoblin that pundits and strategists trot out each year like some Halloween ghoul to try to…

Never Been So Many Almost Junk Bonds; Court ruling poses threat to retail brokerage industry Standard

First Read Hits & Takes JLN Staff From FIA: FIA is a recruiting a new member of the team in its London office to oversee clearing policy and operations issues. The new hire will replace Declan Ward who is retiring from his role as Vice President of Clearing Policy and Operations in November after three decades in the industry. Declan joined FIA in February 2014 from NYSE Euronext, where he had spent 26 years in various roles at the London Traded Options Market (LTOM) and then Liffe, most recently as Executive Director NYSE Liffe Clearing. FIA President and Chief Executive…

Cboe turns to machines to police VIX; OCC’s capital plan; Chinese copper options Standard

Observations & Insight T.G.I. (Almost) F. or: How I Learned to Stop Worrying and Love Pot Stock Volatility Spencer Doar – JLN Weed stocks are way more volatile than the connoisseurs of the industry’s products it seems, man. Reuters had this story yesterday – Tilray options on fire as pot-stock frenzy grips market. The craziest stat from that article was “For the week so far, the combined trading volume for Tilray and Cronos Group options was roughly 680,000 contracts, or about 2.7 percent of overall U.S. single stock options activity, Trade Alert data showed.” That stat is followed by a…

Options Market Share Is Being Spread Around; SKEW Index Record Standard

Observations & Insight Half Week Notes Spencer Doar – JLN According to Vance Harwood’s calculations (he writes the Six Figure Investing Blog), a 1.5x leveraged vol fund needs to reverse split every 8-22 months. UVXY just did a 5:1. This is its ninth reverse split, but the first since the fund’s leverage was changed from 2x to 1.5x. For more, see this post. Premier Li Keqiang said China will not devalue the yuan to help boost exports. On a related note, look at soybean prices. Also see Reuters’ Inside China’s strategy in the soybean trade war. Denmark’s largest bank is…

Credit Suisse Has a Derivative for Every Stock-Market Nightmare; OCC Declares 2017 Clearing Member Refund Standard

Lead Stories Credit Suisse Has a Derivative for Every Stock-Market Nightmare Yakob Peterseil and Sid Verma – BloombergQuint Bears may have gone into hiding, but Credit Suisse Group AG has found a way to coax them out. Mandy Xu, the bank’s chief equity derivatives strategist in New York, is pitching options that bet on a domino effect toppling the record-breaking rally in S&P 500 stocks. Trades sold to institutional investors by the investment bank envision a scenario in which anything from an inverted yield curve to rising rates to a spike in oil prices triggers an end to the longest…

Tail-Risk Hedging, Election Uncertainty and Quant Funds Standard

Observations & Insight Monday Funday – Wine, Analytics and a Contest Spencer Doar – JLN Always wanted to go to one of ALTSO’s great charitable events to network and listen to musicians from the industry? Here is a special chance to win two free tickets to ALTSO’s annual Rocktoberfest event on October 11 in Chicago. ALTSO’s modular prosthetic limb kit – the Joshi – is made of high quality aluminum and stainless steel. Guess what the closing price of Alcoa Corp (NYSE: AA) will be on Thursday, September 20 for your chance to win. Enter the contest here. Missed this:…

VIX Volumes Soar; India’s Extended Derivatives Hours Standard

Observations & Insight The Spread – It Was Nasdaq Week – 9/14 JohnLothianNews.com What do an unexpected forecast for rain, long-standing animus in the clearing tech space and a speed bump have in common? In this week’s episode of “The Spread” the answer is Nasdaq. Watch the video and see the stories referenced here » ++++ What does your clearinghouse DEFCON scale look like today? Jim Kharouf – JLN Talk about timing. Ten years after the collapse of the global financial market and a decade of rebuilding it, Nasdaq reports that Nasdaq Clearing had to cover for a clearing member…

The Spread – It Was Nasdaq Week – 9/14 Standard

What do an unexpected forecast for rain, long-standing animus in the clearing tech space and a speed bump have in common? In this week’s episode of “The Spread” the answer is Nasdaq.  Stories referenced:  Bloomberg -> Nordic Power Whale Losses Are Blow to World’s Oldest Market Reuters -> Energy firms, Nasdaq to prop up power market after trader default WSJ (from August) -> Regulators Probe Options Market’s Major Clearinghouse Reuters -> Nasdaq to buy Swedish trading solution provider Cinnober Nasdaq Press Release -> Nasdaq to Acquire Cinnober Quartz -> A billionaire trading pioneer is switching his company’s listing to a new…