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Category Archives: Options

Options news updates from John Lothian News.

Steve Crutchfield – NYSE Amex Standard

JLN Options editor Sarah Rudolph spoke to Steve Crutchfield, CEO of the options business at NYSE Amex, about the 2012 Security Traders Association of Chicago (STAC) Conference and upcoming trends impacting the options market. Crutchfield, who spoke on a STAC panel titled “Cross Product Exchange Leadership,” discussed the Volcker rule and its effect on options, as well as trends in options volumes for 2012. Visit the NYSE Amex website. To see the agenda from this most recent STAC conference, click here.

JLN Options: Tail-Risk Hedges on Volatility Lure Money Even After Stocks’ January Surge Standard

Lead Stories Tail-Risk Hedges on Volatility Lure Money Even After Stocks’ January Surge By Alexis Xydias, Bloomberg Funds that profit from swings in stock prices are attracting record amounts from investors as money managers seek protection from extreme volatility, even as equities have their best start to the year since 1994. The JPMorgan Macro Hedge U.S. Source Exchange-Traded Fund aims to rise during market stress and generate returns even if stocks gain, the New York-based bank said in a press release today. The Nomura Voltage Mid-Term Source ETF attracted $165 million in January, its best month for inflows since its…

JLN Options: Vix trading: Tail wagging the dog? Standard

Lead Stories Vix trading: Tail wagging the dog? Tom Osborn, Financial NewsCould investors using Vix index products to profit from market volatility, rather than to insure against equity losses, be dictating the volatility of individual S&P 500 stocks?The Vix index, developed jointly by S&P and US options exchange operator CBOE, offers a gauge of the likely level of future movement in S&P 500 stocks, known as their implied volatility. More colloquially, its known as Wall Street’s Fear Gauge. The index is highly inversely correlated to the S&P 500 leading equity index, usually rocketing when the index falls, giving investors an…

JLN Options: Banks, VIX Merit ‘Positive Attitude’ on Stocks: Chart of the Day Standard

Lead Stories Banks, VIX Merit ‘Positive Attitude’ on Stocks: Chart of the Day Bloomberg “A positive attitude toward equity investing is now in order” because U.S. bank stocks are doing relatively well and volatility is fading, according to Donald Coxe, a strategy adviser to Bank of Montreal. The CHART OF THE DAY combines three indicators that Coxe used to draw this conclusion in his latest monthly report. The top panel tracks the ratios of two KBW Inc. bank indexes — one for the largest U.S. lenders and the other for regional banks — to the Standard & Poor’s 500 Index….

JLN Options: BOX Options Venue Files With SEC for Its Own Exchange License Standard

Lead Stories BOX Options Venue Files With SEC for Its Own Exchange License By Nina Mehta, Bloomberg – Feb 1, 2012 3:11 PM CTBOX Options Exchange LLC, owned by the operator of the Toronto Stock Exchange and seven brokers including Citadel LLC and Interactive Brokers Group Inc., filed to become a U.S. securities exchange. TMX Group Inc. (X), which owns 53.8 percent of BOX, will limit its equity stake in the self-regulatory organization, the entity registered with the U.S. Securities and Exchange Commission that will operate the market, to 40 percent and its voting share to 20 percent, BOX Chief…

JLN Special Report: January 2012 Volumes Down Standard

Jim Kharouf

On Your CalendarA little over a month ago, I asked an exchange executive about falling volumes in the options space, to which he said. “January is going to tell us a lot.” January’s message to the options industry wasn’t kind. Most exchanges are reporting lower volumes for the month. Some may call it an off month, but given a host of events that have hit the financial markets – futures, options, stocks and currencies – January may be a harbinger for a rough 2012. CNBC’s Bob Pisani wrote a good story about equity market volume drops and its causes. He pointed out…

JLN Options: THE OPTIONS INDUSTRY COUNCIL ANNOUNCES JANUARY VOLUME DECLINED 11 PERCENT Standard

Lead Stories THE OPTIONS INDUSTRY COUNCIL ANNOUNCES JANUARY VOLUME DECLINED 11 PERCENTCHICAGO (February 1, 2012) – The Options Industry Council (OIC) announced today that 335,399,999 total options contracts changed hands in January, which is down 11.38 percent compared to January of last year when 378,480,506 contracts were traded. Although volume is down compared to last year, January 2012 is the third highest January by volume on record. Average daily volume for the month came in at 16,770,000 contracts, 11.47 percent less than the 18,942,025 contracts traded during January 2011. Equity options volume (options on individual stocks and ETFs) in January…

Five Minutes with John Goode Standard

John Goode

John Goode, the CIO of the Boston Options Exchange (BOX), recently participated in a panel on technology challenges for the derivatives industry at the Security Traders Association of Chicago’s Midwinter Conference. He spoke with JLN Options editor Sarah Rudolph about how BOX is addressing some of those challenges and expanding its technology offerings. Q: On the panel at the STAC conference, you mentioned a couple of new developments coming up from BOX, but you did not elaborate on them. What are the two new technology releases you mentioned? A: The year 2012 is going to be a busy year for…

JLN Options: Low Volatility Favors Investors Right Now Standard

Lead Stories Low Volatility Favors Investors Right Now Plus, 2 tricks for using the VIX in your tradingJan 31, 2012By Adam Warner, InvestorPlaceNews Flash: The CBOE Volatility Index (CBOE:VIX) has had a pretty severe drop these past few months. By some measures, this is as fast as it has ever declined. In fact, the VIX has pared nearly 2/3 of its “value” in less than four months. I use the term “value” loosely, though, as the VIX is not a stock or a commodity or any sort of hard asset. It’s a statistical calculation — essentially a measure of the…