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Category Archives: Options

Options news updates from John Lothian News.

JLN Options: VIX Falls As Greece Buys More Time Standard

Lead Stories VIX Falls As Greece Buys More TimeBrendan Conway, Barron’sTraders are taking the lack of immediate euro-disaster are a reason to sigh relief. They’re also ramping up speculation on more action from the Federal Reserve. The CBOE Volatility Index just touched the lowest intraday level in over a month, as prices of options to buy and sell the S&P 500 head lower.http://jlne.ws/M7CKHw Oil, Euro Fall as Spain Yields Surge; S&P 500 Fluctuates Michael P. Regan, BloombergCosts of options to protect against losses in equities slid today as Greece’s elections eased concern that anti-bailout politicians would take over, jeopardizing the…

JLN Options: TD’s Nagy Starts New Firm Standard

Lead Stories TD’s Nagy Starts New FirmJohn D’Antona Jr., Traders MagazineAlthough he expected to take the summer off before starting his new firm in the fall, former TD Ameritrade exec Christopher Nagy has gotten right back to work in his new digs at KOR Trading.http://jlne.ws/NDHngz Forex options show little faith in SNB euro floorJulie Haviv, ReutersSwitzerland’s central bank says it is determined to prevent the country’s currency climbing too high against the euro, but there are doubts in the options market its resolve will hold during the latest chapter of the euro zone debt crisis. Risk reversals show investors are…

JLN Options: Dimon Says Volcker Rule May Have Cut Credit-Derivatives Loss Standard

Lead Stories Dimon Says Volcker Rule May Have Cut Credit-Derivatives LossSilla Brush and Dawn Kopecki, BloombergJPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon said a proposed U.S. ban on proprietary trading may have limited the bank’s derivatives-trading losses of at least $2 billion.“It may very well have stopped parts of what this portfolio morphed into,” Dimon said, referring to the so-called Volcker rule during testimony at the Senate Banking Committee today. “It’s possible. I just don’t know.”http://jlne.ws/KF0zpX CBOE To Introduce First Interest Rate-Based Volatility IndexPress ReleaseThe Chicago Board Options Exchange (CBOE) announced today that it will begin disseminating…

JLN Options: FOA calls for harmony on listed derivatives reporting rules Standard

Lead Stories FOA calls for harmony on listed derivatives reporting rulesAnish Puaar, The TradeTrade body the Futures and Options Association (FOA) has raised concerns with UK and Italian regulators on potentially burdensome regulatory requirements for reporting listed derivatives trades.The issue relates to article nine of the European market infrastructure regulation (EMIR), Europe’s blueprint for OTC derivatives reform, which obligates trade counterparts – both buy- and sell-side firms – and central counterparties (CCPs) to report derivatives trades to newly-created data repositories.http://jlne.ws/LWRRWi Bank Of America’s $67 Trillion In Derivative Positions ExplainedAndrew Mann, Seeking Alpha…This article will focus solely on Bank of America’s…

JLN Options: J.P. Morgan Knew of Risks Standard

Lead Stories J.P. Morgan Knew of RisksDan Fitzpatrick, Gregory Zuckerman and Joann S. Lublin, The Wall Street Journal Some top J.P. Morgan Chase & Co. executives and directors were alerted to risky practices by a team of London-based traders two years before that group’s botched bets cost the bank more than $2 billion, according to people familiar with the situation.Interviews with more than a dozen current and former members of the bank’s Chief Investment Office, the unit responsible for the losses, indicate that discussions about reining in London traders started as early as 2010. Certain directors were briefed then on…

JLN Options: Russell Posts Preliminary Lists of Global / U.S. Index Additions as Part of Annual Reconstitution Process Standard

Lead Stories Russell Posts Preliminary Lists of Global / U.S. Index Additions as Part of Annual Reconstitution ProcessPress ReleaseRussell Investments has posted its official lists of companies set to join or leave the U.S. broad-market Russell 3000® Index and Russell Microcap® Index when its industry-leading institutional U.S. equity indexes are fully reconstituted on June 22. These lists of U.S. companies—and lists of additions and deletions for the Russell Global Index—are available at the Russell reconstitution website.Key measures of market size are lower this year due to market performance over the past year. The combined capitalization of stocks in the Russell…

JLN Options: Glitch in Nasdaq Options Trading Standard

Lead Stories Glitch in Nasdaq Options TradingKAITLYN KIERNAN And MICHAEL DRISCOLL, The Wall Street Journal Nasdaq OMX Group, still smarting from problems with its Facebook IPO, briefly halted trading in about half its options listings Friday morning, citing “systems issues.”At 11:15 a.m. EDT, the company issued an alert to market participants, notifying them trading was halted in symbols N-Z. That was later expanded to include symbols beginning with L and M. http://jlne.ws/LB2RIQ** Hard to imagine worse timing for NASDAQ as they try to quell the fallout over the Facebook IPO problems (not that any time for this happening is “good”)….

JLN Options: How to play it: Options trades ahead of the Greek elections Standard

Lead Stories How to play it: Options trades ahead of the Greek electionsDoris Frankel and David K. Randall, ReutersMoney managers and analysts are looking ahead to Greek parliamentary elections on June 17 that could decide whether the country continues austerity measures it agreed to as part of as an international bailout plan, or whether Greece takes a big step toward leaving the 17-member euro zone.If Greece does exit the euro currency, Europe’s financial system may further weaken and lead to a freezing of global credit markets. Polls show that Greek voters are roughly split between the conservative, pro-bailout New Democracy…

JLN Options: Hedge Funds Shorts Match October With VIX Near 26 Standard

Lead Stories Hedge Funds Shorts Match October With VIX Near 26Nikolaj Gammeltoft and Cecile Vannucci, BloombergThe selloff that erased $1.78 trillion from American equity values has pushed the cost of options to the highest levels of 2012 and prompted hedge funds to add to short sales at the fastest rate since October.The Chicago Board Options Exchange Volatility Index surpassed 26 last week, a level not seen since December. The gain left the gauge near its price just before the Standard & Poor’s 500 Index slumped 12 percent in August and September 2011, data compiled by Bloomberg show. As the VIX…