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Category Archives: Options

Options news updates from John Lothian News.

Views On Low Vol; Lightspeed Merging Business With Lime Brokerage Standard

Observations & Insight U.S. Government Nears Shutdown With GOP Stopgap Bill at the Brink Bloomberg Temporary government funding runs out at midnight Friday and the House and Senate are seeking an agreement on a temporary extension. Democrats are demanding that spending legislation include a provision permanently shielding about 690,000 undocumented immigrants brought to the U.S. as children from deportation, while Republicans want to keep that issue separate from funding and budget negotiations. /goo.gl/hSFdNM ****SD: Constant updates on the situation provided on the page. For the big picture, TD’s JJ Kinahan in Forbes – Will the Government Shut Down or Won’t…

S&P 500 Rallies With the VIX; Credit Suisse Predicts Volatility Range; Arcane Oil Options Indicator Standard

Observations & Insight You Can’t Rain On Our Parade: Cboe’s Big 2017 Includes Bitcoin Futures. Can It Overcome Regulatory, Margin and Volatility Headwinds? Jim Kharouf – John Lothian News To hear Cboe Global Markets Chairman and CEO Ed Tilly tell it, his exchange group is firing on all cylinders and adding new ones to the engine. The exchange boasts the top US equity options market and has a lock on volatility products with the VIX futures and options and related exchange traded products. Cboe now has the top pan-European equity market and the second ranked US stock market, as well…

Third Barclays FX Trader Faces Charges in Scandal; Cboe update; Prop consolidation Standard

Observations & Insight You Can’t Rain On Our Parade: Cboe’s Big 2017 Includes Bitcoin Futures. Can It Overcome Regulatory, Margin and Volatility Headwinds? Jim Kharouf – John Lothian News To hear Cboe Global Markets Chairman and CEO Ed Tilly tell it, his exchange group is firing on all cylinders and adding new ones to the engine. The exchange boasts the top US equity options market and has a lock on volatility products with the VIX futures and options and related exchange traded products. Cboe now has the top pan-European equity market and the second ranked US stock market, as well…

Cryptocurrency Prices Crumble; Traders Pay Through the Nose to Bet the S&P 500 Will Snap Higher; Dow Industrials Cross 26000 for First Time as Earnings Season Ramps Up Standard

Lead Stories Cryptocurrency Prices Crumble; Bitcoin, Ethereum Post Large Losses Nasdaq Cryptocurrency Market under Heavy Selling Pressure “Only when the tide goes out do you discover who has been swimming naked,” stock market guru Warren Buffett once observed and it looks like the cryptocurrency tide has definitely receded in the last 24 hours with the market showing double digit percentage losses right across the board. The sell-off started in Asia and accelerated when European traders entered the fray, as talk continued to circulate that South Korea was preparing a cryptocurrency ban. Bitcoin and Ethereum prices fell sharply last week after…

Strong 2017 Options Volumes; FX Options Traders Get Wake-Up Call; Cryptocurrencies Steal Volatility Standard

Lead Stories Editor’s Note: In light of Martin Luther King Jr. Day, there will not be a JLN Options newsletter on Monday. US Options Volumes Strong in 2017 Despite Record Low Volatility Tabb Options Liquidity Matrix US equity options volumes in 2017 increased 3.1% over 2016 totals, reaching 4.19 billion contracts, the third-highest annual total in the past 10 years. 2017’s volume was surpassed only by the record-setting 4.56 billion contracts in 2011 and 4.27 billion contracts in 2014. The volume growth in 2017 is indicative of clients’ increasing use of equity options to manage risk as well as the…

A Huge Player in VIX Options Just Changed Its Buying Behavior; Stocks Are Priced for Perfection; 6 Signs of Extreme Stock Market Optimism Standard

Observations & Insight STAC Options Notes Spencer Doar – JLN It was a lively options market structure panel at STAC’s Mid-Winter Meeting in Chicago Wednesday. Moderated by OCC’s Chief Risk Officer John Fennell, the panelists were BOX CEO Ed Boyle, Dash Financial CEO Peter Maragos, CTC’s Head of Market Structure Steve Crutchfield, and IMC Managing Director Paul Jiganti. Here are some takeaways. Crutchfield gave an example, provided by Trade Alert President Henry Schwartz, of how burdensome bank capital rules can be on big bank clearers (there are pretty much only three) of options liquidity providers. In a very tight put…

Is the VIX Being Gamed?; Bullish Options Positioning; Traders Love Crypto Stock Moves Standard

Lead Stories Is the VIX Being Gamed? A Sudden Swoon Has Traders Talking Again Nikolaj Gammeltoft and Cecile Vannucci – Bloomberg It made for quite a chart. On the morning of Dec. 20, just as billions of dollars of futures tied to the Cboe Volatility Index were set to expire, the index plunged. The result was a settlement price, a weekly value critical to holders of some the most heavily traded derivatives in the country, that was 13 percent below the prior day’s close. A nice break, if you were short. jlne.ws/2FmYv96 ****SD: I think one upside to this whole…

As Stocks Reach New Highs, Investors Abandon Hedges; Bond Market Vol at Multidecade Lows Standard

Observations & Insight Top Options Stories of 2017 Countdown JohnLothianNews.com Listicles are occasionally the butt of jokes – Buzzfeed knows – but what about listideos? With 2017 in the bag, we at JLN thought we’d recap the year in options with a list of the big stories and trends – and there were a number. Below are links to stories referenced in the countdown. Watch the video and read the rest here » Lead Stories As Stocks Reach New Highs, Investors Abandon Hedges Gunjan Banerji – WSJ Big stock-market gains are leading a number of investors to abandon defensive positions…

Options Market Is Skeptical About High-Yield Bonds; OCC plans minimum cash contributions to clearing fund; German-Russian man admits to Dortmund team bus bombing Standard

Observations & Insight The Spread – Week of 1/1/18 JohnLothianNews.com A new year, a new Spread! The Spread is a brief recap of some of the notable activity in the options world. The following are stories referenced in this week’s episode of The Spread: Bloomberg – Five Things We Learned About MiFID II on Its First Day at Work OCC – OCC 2017 Total Cleared Contract Volume Up Four Percent, Third Highest Volume Year Ever The New York Times – When Forecasters Get It Wrong: Always See It Market – SKEW Index Continues To Diverge From VIX Index Northwestern’s Kellogg…