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Category Archives: Options

Options news updates from John Lothian News.

JLN Options: Euro Strengthens as Draghi Promises to Preserve It; Rand Climbs Standard

Lead Stories Euro Strengthens as Draghi Promises to Preserve It; Rand ClimbsJoseph Ciolli, BusinessweekThe euro advanced against the dollar by the most in almost a month after European Central Bank President Mario Draghi said policy makers will do whatever is needed to preserve the 17-nation currency…Implied volatility on three-month options for Group-of- Seven currencies declined for a second day, reaching 9.34 percent, according to the JPMorgan G7 Volatility Index. It rose to 9.83 percent on July 24, the highest level this month. The average over the past five years is 12.4 percent.http://jlne.ws/OeCA64 CBOE Begins Offering Process For Trading SPX Variance…

JLN Options: Interactive Brokers to Pay $700,000 Penalty Standard

Lead Stories Interactive Brokers to Pay $700,000 PenaltyTom Steinert-Threlkeld, Securities Technology MonitorInteractive Brokers agreed to pay civil penalties of $700,000 to settle a case involving inaccurate reporting on futures transactions involving large trading firms.http://jlne.ws/Po7CXE LME Shareholders OK HKEx Takeover PactPhilip Burgert, Resource InvestorShareholders of the London Metal Exchange voted in two venues on Wednesday to approve a £1,388 million ($2.15 billion) takeover bid by the Hong Kong Exchanges & Clearing Ltd., ending 10 months of debate on the sale of the exchange.http://jlne.ws/Mmx1hS **The end of the LME’s 135-year history as a member-owned exchange (one of the last left in the world)….

JLN Options: Scam insurance: CME offers to hold deposits of futures brokers’ customers Standard

Lead Stories Scam insurance: CME offers to hold deposits of futures brokers’ customersKaja Whitehouse, New York PostTerry Duffy is sick and tired of futures customers getting ripped off.The head of the nation’s largest futures exchange yesterday suggested all customer funds stay on deposit at his Chicago Mercantile Exchange or other clearinghouses to protect the cash from brokers going bust.http://jlne.ws/OvQefZ In Scary Markets, Big Risks Can Still Be a Big DrawJonnelle Marte, The Wall Street JournalBetting on fear can be a real horror show.Returns this year for exchange-traded funds and notes that track the Chicago Board Options Exchange Market Volatility Index—more…

JLN Options: VIX Jumps Most Since November as S&P 500 Sinks on Europe Concern Standard

Lead Stories VIX Jumps Most Since November as S&P 500 Sinks on Europe ConcernLu Wang and Julia Leite, BloombergThe benchmark gauge for U.S. options prices rose the most in eight months as concern that the European debt crisis is worsening spurred losses in equities.The Chicago Board Options Exchange Volatility Index (VIX), or VIX, surged 17 percent to 19.01 at 12:32 p.m. in New York, poised for its biggest gain since Nov. 9. The Standard & Poor’s 500 Index, a benchmark measure for U.S. equities, slid 1.4 percent to 1,343.15. In Europe, the VStoxx Index (V2X), a measure of Euro Stoxx…

JLN Options: Options Trading Isn’t Dead: Future Growth Will Occur When Investors Refocus on Equity Markets Standard

Lead Stories Options Trading Isn’t Dead: Future Growth Will Occur When Investors Refocus on Equity MarketsAndy Nybo, Tabb GroupOptions volumes may be down along with the equity markets, but the buy side’s increasingly sophisticated use of options strategies and growing investments in supporting technology point to big things for the market.Global equity markets are under stress — for good reason. Many observers consider the markets to be broken, with structural inequities that favor professional investors over the uniformed. Add to that slowing global growth, continued political uncertainty and new regulations that threaten to indelibly shift market structure, and you can…

JLN Options: Euro-Zone Crisis? What Crisis? FX Option Trader Fears Melt Standard

Lead Stories Euro-Zone Crisis? What Crisis? FX Option Trader Fears MeltWilliam Kemble-Diaz, The Wall Street JournalIf currency derivatives traders are running scared about the euro-zone debt crisis, they’re no longer showing it.A key gauge of market expectations shows betting on the euro’s imminent collapse against the dollar using foreign-exchange options has withered this month, despite creeping worries about the sustainability of Spain’s stubbornly high funding costs and nagging concerns over Greece’s capacity to meet the terms of its bailout program.http://jlne.ws/Q89szg Trade group chief tells futures industry to restore confidenceErin Chan Ding, Chicago TribuneThe head of the Futures Industry Association told…

JLN Options: CME Seen Needing CBOE as Profit Woes Spur Speculation Standard

Lead Stories CME Seen Needing CBOE as Profit Woes Spur SpeculationMatthew Leising, Whitney Kisling and Will Robinson, Bloomberg BusinessweekFor CME Group Inc. to improve the exchange industry’s worst profit outlook, the owner of the Chicago Mercantile Exchange needs only to look across the street to CBOE Holdings Inc., home of the biggest U.S. options market.CME’s net income will decline 19 percent in the next three years, according to analysts’ estimates (CME) compiled by Bloomberg. CBOE, a $2.47 billion company forecast to boost profit 26 percent in the same period, has rallied (CBOE) more than every developed-market peer of similar size…

JLN Options: Options market looking more to Canadian dollar Standard

Lead Stories Options market looking more to Canadian dollarJulie Haviv, ReutersThe Bank of Canada is widely expected to hold interest rates steady this week, but with an increase expected in less than a year, investors in the options market have become less bullish on the U.S. dollar’s upside versus the Canadian currency.Options investors are still betting on the U.S. dollar strengthening against the Canadian dollar, but they have been paring those bullish positions in the past few weeks.http://jlne.ws/MvcMTw** Just saw a Time Magazine article that the average Canadian is now wealthier than the average American.  Guess stories like this should…

JLN Options: Stocks Off Lows, but Economic Fears Persist Standard

Lead Stories Stocks Off Lows, but Economic Fears PersistJeeYeon Park, CNBCStocks pared some losses in volatile trading Monday, but investors hesitated to jump in amid concerns over the slowing economy and ahead of Fed Chairman Ben Bernanke’s speech later this week…The S&P 500 and the Nasdaq also dipped after briefly turning higher. The CBOE Volatility Index, widely considered the best gauge of fear in the market, traded near 17.http://jlne.ws/Lm3ovk VXX Hits New All-Time Low – How Far Down Can It Go?Richard Bloch, Seeking AlphaOn the morning of Friday, July 13, a reader sent me a question ask how low the…