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Category Archives: Options

Options news updates from John Lothian News.

JLN Options: Leveraged Volatility Trades Plunge 23% Monday Standard

Lead Stories Leveraged Volatility Trades Plunge 23% MondayBy Brendan Conway, Barron’sThe leveraged trade that looked so promising last week got crushed today as pledges to help Greece stay in the euro-zone and chatter of stimulus in China fueled investors’ risk appetites.The ProShares Ultra VIX Short-Term Futures ETF (UVXY) plunged 23%.http://jlne.ws/JlAor4 In Volatility Trading, Accept No SubstituteThe Wall Street JournalWhen it comes to fear gauges, traders will accept no substitutes.After the Chicago Board Options Exchange Volatility Index, commonly called the market’s fear gauge, surged in 2008 amid the height of the financial panic, exchanges all over the world began launching their…

JLN Options: brokersXpress not an option for Schwab Standard

Lead Stories brokersXpress not an option for Schwab By Bruce Kelly, Investment News Some 325 brokers and registered investment advisers are hustling to find new homes in the wake of The Charles Schwab Corp.’s announcement last week that it is closing down brokersXpress LLC, an independent broker-dealer for representatives and financial advisers who trade options.“This was not a cost-cutting effort,” said Schwab spokeswoman Susan Forman. “It was more of a philosophical decision.” The company will focus on fee-based registered investment advisers who use its custodian group, Schwab Advisor Services, rather than on brokers who charge a commission for trades, Ms….

JLN Options: BATS Board Considers Listing an IPO on Rival Standard

Lead Stories BATS Board Considers Listing an IPO on Rival By JENNY STRASBURG, WSJ.com Exchange’s Board Considers Listing a Relaunched IPO on NYSE or NasdaqBATS Global Markets’ board is debating whether to list the company on a rival exchange once it revisits plans for an initial public offering, a step that would further undermine its bid to challenge NYSE Euronext NYX +0.08% and Nasdaq OMX Group Inc. NDAQ -2.33% for corporate listings. BATS’s first IPO attempt ended in disaster in March, when the company pulled the offering over what it called a technical glitch on its own exchange. The setback…

JLN Options: Options Industry Blasts IRS Proposal Standard

LEAD STORIES Options Industry Blasts IRS Proposal  Peter Chapman, Traders MagazineProposed U.S. tax rules that target offshore hedge funds have come under fire by the options industry. The U.S. Securities Market Coalition, a lobbying organization that represents the options exchanges and the Options Clearing Corporation, the Chicago Board Options Exchange, and the Securities Industry and Financial Markets Association, have all advised the U.S. Treasury to back away from imposing a dividend withholding tax on foreign options traders.“If adopted as proposed,” Joe Corcoran, the OCC’s head of government relations, said at this year’s Options Industry Conference, “we believe the regulations could…

A Chat with Tony McCormick, BOX CEO, on After-Hours Options Trading Standard

The Financial Times published a story on May 14 revealing that the BOX Options Exchange is developing a plan to trade U.S. stock options after the closing bell (see below under Lead Stories). JLN Options wanted to follow up with BOX’s chief executive, Tony McCormick, with some questions about the plan, so options editor Sarah Rudolph spoke with him by phone after having heard him speak on the Exchange Leaders panel at the Options Industry Conference in New Orleans. Q: Has anyone tried after-hours trading of options before? A: I’m trying to remember – I think a long way back,…

JLN Options: May 16, 2012: A Chat with BOX CEO Tony McCormick on After-Hours Options Trading Standard

Commentary/Story/ Q&A A Chat with Tony McCormick, CEO of BOX, on the Exchange’s Proposal for After-Hours Options Trading The Financial Times published a story on May 14 revealing that the BOX Options Exchange is developing a plan to trade U.S. stock options after the closing bell (see below under Lead Stories). JLN Options wanted to follow up with BOX’s chief executive, Tony McCormick, with some questions about the plan, so options editor Sarah Rudolph spoke with him by phone after having heard him speak on the Exchange Leaders panel at the Options Industry Conference in New Orleans. Q: Has anyone…

JLN Options: TABB on US Options Trading: Low-Touch on the Rise Standard

Lead Stories TABB on US Options Trading: Low-Touch on the RiseOver the past year, investment managers tell TABB, a number of important recent changes affecting their US options trading are not only short-term drivers – but long-term catalysts, says TABB Group.Speaking to preliminary analysis drawn from TABB’s soon-to-be-published annual US options trading study (currently in editing), Matt Simon, TABB NY senior analyst and co-author of the new 2012 benchmark study with Andy Nybo, head of derivatives, says that when he backtracked through hours of transcripts from interviews with 54 traders at US hedge funds, asset managers and prop trading shops…

JLN Options: ISE to List Options on Facebook on May 29 Standard

Lead Stories> ISE to List Options on Facebook on May 29 NEW YORK, May 15, 2012 – The International Securities Exchange (ISE) today announced that it will list options on Facebook (ticker: FB) beginning on Tuesday, May 29. Citadel Securities LLC will serve as the Primary Market Maker for Facebook at ISE. The options listing date is contingent on a successful completion of Facebook’s initial public offering on Friday, May 18.  http://jlne.ws/KLQLfj (PDF) CBOE Information:The CBOE has not put out a press release regarding options on Facebook, but has released the following information:If Facebook launches its IPO on Friday, May 18,…

JLN Options: BOX considers after-hours options trading Standard

Lead Stories BOX considers after-hours options trading  By Telis Demos in New York and Hal Weitzman in Chicago, FT.comTraders could get the chance to buy and sell US stock options after the closing bell, under a plan being developed by a US exchange. Tony McCormick, chief executive of the BOX Options Exchange, told the Financial Times that development of an after-hours platform is still in ”very early stages”.“It exists for stocks, why not a subset of the options world? Electronic trading firms already accept some orders after-hours,” said Mr McCormick.  Unlike in equities, where exchanges offer after-hours trading, the options…