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Category Archives: Options

Options news updates from John Lothian News.

Endangered Options Specialists; FX volatility; Derivatives need LIBOR alternative Standard

Observations & Insight Miscellany for Friday SD– JLN Perusing the day’s most active option chains on the OIC’s website yesterday was a bit wonky. Only one of the 19 most active equity symbols had more put activity than calls, that being FOXA (21st Century Fox). On the ETF side, there was a lot of lopsided action. TLT (20-yr Treasuries) saw 92 percent of its activity on the call side. The flip side of that coin – ETFs dominated by put activity – was populated by EEM (emerging markets), QQQ (Nasdaq), EWZ (Brazil) and SMH (semiconductors), with puts accounting for 80…

May Volumes; Fixing the VIX; 50 Cent; OIC Options Studies Standard

Observations & Insight US Options Volumes Remain on Record Pace Despite Slowing Momentum TABB Forum US options volumes slipped again in May 2018, losing some of the momentum established during a torrid first quarter, but volumes still remain on pace to hit record levels for the year. May 2018 volumes fell to 366 million contracts, from April’s 398 million contracts. However, year-to-date US options volumes represent a healthy 25.2% gain over 2017. bit.ly/2KaE7K7 ****SD: The only exchange with a decrease in volume YoY is Nasdaq BX, but that drop was a mere 2 million contracts, which is more than made…

Cboe’s year of change; Committee for Options Markets?; VIX lawsuit developments Standard

Observations & Insight FIA IDX 2018 – Brexit’s Influence on Global Markets JohnLothianNews.com MiFID II was more than 20,000 pages with 21 million paragraphs of regulation. Considering its scope, things have gone rather smoothly since it went into effect in January. But for Simon Puleston Jones, FIA’s head of Europe, there is no time to rest on the laurels of a successful implementation with Brexit looming. Brexit cuts across all the other issues on FIA’s plate in Europe. One aspect of MiFID II left unresolved is equivalence assessments, which are impacted by Brexit. The Emir review this year, with its…

Shortwave trading; “Quitaly” update; Warning bells Standard

Observations & Insight OCC 2017 Interactive Annual Report OCC On behalf of the Board of Directors and my fellow colleagues at OCC, I am pleased to share with you our 2017 annual report. Over the past year, the team achieved a number of key milestones that position OCC for continued resiliency, innovation and growth while strengthening our role as an industry leader and market influencer. /goo.gl/9USqKf ****SD: I like the multi-media aspect of this report – videos with Walt Lukken, Bill Brodsky and more are included. Some numbers – $78.7 million refunded to clearing members; $15.2 billion held in clearing…

Why even bigger volatility ‘accidents’ are yet to come Standard

Observations & Insight China’s tariffs on U.S. oil would disrupt $1 billion monthly business Henning Gloystein – Reuters China’s threat to impose duties on U.S. oil imports will hit a business that has soared in the last two years, and which is now worth almost $1 billion per month. /goo.gl/vcKWZe ****SD: It is estimated that the U.S. will dethrone Saudi Arabia as oil production king by 2019. Also in big oil news – OPEC Discusses Output Hike of Up to 600,000 Barrels a Day. In other tariff news – it might be up a smidge today, but check out the…

Options Markets Stability Act passed; Short-Volatility Bets Boom Standard

Lead Stories Financial Services Committee Unanimously Passes Hultgren’s Options Markets Stability Act Congressman Randy Hultgren Today, the House Committee on Financial Services unanimously passed H.R. 5749, the Options Markets Stability Act. The legislation authored by U.S. Rep. Randy Hultgren (IL-14) would facilitate liquidity in options markets by calling on bank regulators to provide targeted capital relief. bit.ly/2JOG7Ym ****SD: Woo hoo! Securities Lending Times on the issue here. Short-Volatility Bets Boom as Hedge Funds Take Baton From Banks Yakob Peterseil – Bloomberg Fast money bets on muted price swings in debt, mutual funds; Option sales profitable as private-bank clients go long…

JLN Options: ’50 Cent’ Returns; Clinging to Risk; Central bank activity Standard

Observations & Insight Miscellany for Thursday The new edition of FIA’s MarketVoice is available online. FANG+ Options went live at NYSE on Monday. Trade Alert is now live with VIX futures info. We started rolling out videos from FIA IDX. First up was ICE Europe’s Stuart Williams. Speaking of videos, we released a video with CME Group’s options head Derek Sammann where he talks about the franchise’s continued growth. In case you missed it, Robinhood’s options trading business is apparently booming. ++++++ None of Us Understand Probability RCM Alternatives This week kicks off the World Cup, and while the U.S….

Shortwave trading; Robinhood’s $2b a day options biz; Mammoth bond wager Standard

Observations & Insight A little-known business at Robinhood has exploded, and now it’s launching a service to go after the most serious traders Frank Chaparro – Business Insider Prime (SUBSCRIPTION) Robinhood’s options-trading business is exploding, according to Chris O’Neil, a product manager at the California broker. Now the firm, which says it has seen $2 billion in options-trading volumes since launch, is upping the ante with the rollout of multileg options. The move shows the company is seriously going after the business of more experienced traders, says Devin Ryan, an analyst at JMP Securities /goo.gl/C2CX83 ****SD: First of all, not…

‘Volatility of Volatility’ Is Major Threat To Financial Markets – Beschloss Standard

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Observations & Insight Lead Stories ‘Volatility of Volatility’ Is Major Threat To Financial Markets – Beschloss Neils Christensen – Kitco News While markets continue to enjoy an unprecedented period of low volatility, the chief executive officer of one global investment management firm warns that investors cannot be complacent. Speaking to Kitco News on the sidelines of the 24th annual International Economic Forum of the Americas in Montreal, Canada, Afsaneh Beschloss, founder and CEO of Rock Creek, said that the growing threat to financial markets is the “volatility of volatility.” bit.ly/2HK0LqF Quant Funds Are Selling Stocks With Hidden Volatility Building Dani…