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Category Archives: Options

Options news updates from John Lothian News.

JLN Options: VIX Drops In Face of Bad Earnings, Fed Inaction Standard

NOTE:  The JLN Options blog will not be published tomorrow (Friday, July 13) due to a company retreat.  We will resume publishing on Monday.  Sorry for any inconvenience. Lead Stories VIX Drops In Face of Bad Earnings, Fed InactionMarketWatchVIX, the CBOE Volatility Index, also known as the “fear index” dropped again today in spite of fearful conditions around the globe.VIX dropped 4.1% to 17.95 today, staying below its 50 and 200 day moving averages as investors and professional traders remain complacent by historic standards.  Current levels on VIX are oftentimes associated with significant spikes in volatility and correspondingly lower stock…

JLN Options: Scandal Shakes Trading Firm Standard

Lead Stories Scandal Shakes Trading FirmJacob Bunge, Jerry A. Dicolo and Josh Dawsey, The Wall Street JournalA deepening scandal in the futures-trading business has left an elder statesman of the industry hospitalized after a suicide attempt and regulators seeking to find out what happened to about $215 million of customer money allegedly missing from his firm.The firm, Peregrine Financial Group Inc., filed Tuesday evening in Chicago to liquidate under Chapter 7 of the bankruptcy code.http://jlne.ws/M3dc1t Most Swiss Stocks Decline as Swatch, Richemont RetreatCorinne Gretler, Bloomberg The cost of bearish options on Swiss stocks rose to the highest level ever as…

Five Minutes with Rob Newhouse (July 2012) Standard

Rob Newhouse

Rob Newhouse is the chief executive officer of Victor Technologies, a provider of trading and risk management applications. The company was formed when the Gargoyle Group, an options market-making firm, spun off its technology arm in 2010. He spoke with Sarah Rudolph and Jeff Bergstrom of John Lothian News about a new infusion of capital for the company, their growth strategies, and their technology offerings for options traders. Also see: Five Minutes with Rob Newhouse (April 2009) Q: Victor IB Holdings received equity funding from a group of private investors and financial industry veterans. What will this new infusion of…

JLN Options: SEC Poised to Vote on Broad Stock Surveillance System Standard

Lead Stories SEC Poised to Vote on Broad Stock Surveillance SystemNina Mehta, BloombergThe 32-year wait for a comprehensive record-keeping system to monitor trading across U.S. equity and options markets is approaching a conclusion.The Securities and Exchange Commission is meeting tomorrow to consider adopting a proposal issued three weeks after the stock rout of May 6, 2010, to build a single system to track all order and trading data. The so-called consolidated audit trail will enable the reconstruction of market crises and analyze trading on 13 equity exchanges, 10 options markets and more than 200 broker-dealers that execute stock away from…

JLN Options: Most-Accurate Forecasters on Euro Clash With Options Sign Standard

LEAD STORY Most-Accurate Forecasters on Euro Clash With Options SignAllison Bennett and Lucy Meakin, BloombergThe world’s most-accurate foreign- exchange strategists say the worst is over for the euro this year, putting them at odds with traders who see more pain as the region’s economy shrinks and the sovereign debt crisis deepens…One-year options show that the premium for puts, which grant the right to sell the euro versus the dollar, over calls, which confer the right to buy, is close to the highest relative to three month contracts since Bloomberg began tracking the data in 2003.The gap between the so-called 25-delta…

JLN Options: July 6, 2012: VIX Pops On Europe Fear, Bad Data Standard

Lead Stories VIX Pops On Europe Fear, Bad DataAfter recent sharp declines, VIX popped today on renewed fear over Europe and bad economic data in the United StatesVIX, the CBOE Volatility Index, also known as the “fear indicator,” declined sharply in June from approximately 26-27 down into the mid 17s by the end of the month.http://jlne.ws/OBUVsw OptionMonster Sonar Volatility Report: Buying Upside Skew Exchanges TMX should be acquiring, experts sayFirm could potentially bid for London stock exchange groupBy Doug Alexander And Sean B. Pasternak, Bloomberg News July 6, 2012TMX Group Inc., owner of the Toronto Stock Exchange, should seek takeovers…

JLN Options: Will Added Options Platforms Disperse Liquidity? Standard

Statistics-Commentary-Insight Note: This week’s newsletter is being “guest-edited” by John Lothian News Editor-at-LargeDoug Ashburn.  Quote of the Day“Options trading volumes may be down across the industry but the buy side continues to remain captivated with the potential of using options in their strategies,” -Andy Nybo, head of derivatives at Tabb Group, in the article, “US Options volume heads for first fall in a decade.” Lead Stories Liquidity to disperse further as new options venues launchThe Trade NewsThe prospect of greater choice between US equity options exchanges is being treated with caution by market observers who claim that fragmentation is already…

JLN Options: June Is Second Consecutive Month Of Record Trading Volume At CBOE Futures Exchange Standard

To our American readers have a fun and safe 4th of July!  Stay cool! Lead Stories June Is Second Consecutive Month Of Record Trading Volume At CBOE Futures ExchangePress ReleaseThe CBOE Futures Exchange, LLC (CFE) today announced that June 2012 was the most-active trading month in CFE history and the second consecutive month of record trading volume at the exchange. The most-active trading month in CFE history was driven by record volume in futures on the CBOE Volatility Index (the VIX Index), with June 2012 trading in VIX futures up 85 percent over a year-ago. During the record-breaking month, new…

JLN Options: ISE plans second U.S. market by end of 2012 Standard

NOTE: Due to the July 4 holiday the Options Blog will be published early on Tuesday, July 3 (due to the exchanges working on a half day schedule) and will return on Thursday, July 5. Lead Stories ISE plans second U.S. market by end of 2012ReutersThe International Securities Exchange plans a second market by the end of this year, joining an increasingly crowded field of exchanges offering trading in U.S. stock options.Owned by Germany’s Deutsche Boerse AG, ISE filed an application for a second exchange with the Securities and Exchange Commission, the exchange said on Monday. The market will be…