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Category Archives: Options

Options news updates from John Lothian News.

Investors seek more protection; Hong Kong attracting bearish options; Volatility of cryptocurrencies Standard

Lead Stories Investors seek more protection against risk of a Wall St plunge; A gauge that tracks hedging against a fall in US stocks is near a record level Joe Rennison and Nicole Bullock – Financial Times Investors are stepping up efforts to insure their portfolios against a sharp drop in US stocks, as fears intensify that Donald Trump will struggle to deliver an economic stimulus package that has helped propel the market to record levels this year. /goo.gl/JqUedw ****SD: A CBOE SKEW index story. For more, check out Matt Moran’s blog from last Friday – Demand for Disaster Protection…

BOX Trading Floor Launches; Why Options ETFs Are Gaining Traction Standard

Lead Stories BOX Trading Floor Launches PR Newswire BOX Options Exchange, an innovator in market structure and client services, is pleased to announce the launch of BOX’s new trading floor today. /goo.gl/EkJW7z Why Options ETFs Are Gaining Traction Sumit Roy – ETF.com Options strategies aren’t used very often in the exchange-traded fund world. There are only nine ETFs that regularly use options, with total assets under management of a combined $800 million—small potatoes in the $3 trillion ETF industry. But that could be changing. Strong inflows into one options-linked ETF this year suggests investors may be taking a closer look…

DRW personnel news; Heeding warnings on risk; Hedgie Diggle says ’08 repeat unlikely Standard

Observations & Insight DRW News and a Solar Eclipse Hangover Spencer Doar – JLN Volumes were depressed yesterday because maybe just more dog days of August or maybe the eclipse or maybe who knows? Now, the S&P resumes its march upward and the VIX is back under 12. Cleared volume at the OCC yesterday was 15.2 million contracts, the lowest since the 12.4 million traded on August 7. For context, last Thursday (8/17) and Friday (8/18) both had more than 24 million contracts cleared. One group very much not in lazy summer mode is DRW. The big news was the…

Stock Returns and Politics = Not Normal; VIX The Tail Wagging The Dog?; Euro Pressured as Volatility Rises Standard

Lead Stories Stock Returns, Like Politics, Are Not Normal; There are two primary reasons for the protracted decline in both implied and realized volatility. Dean Curnutt – Bloomberg Perhaps no consensus opinion has proven more incorrect than the notion that a Donald Trump presidency would lead to more market volatility. So range-bound has been the S&P 500 Index in 2017 that fully 60 percent of the days have produced a daily upside or downside return of less than 0.25 percentage point. /bloom.bg/2wqU4c9 ****SD: From WSJ – Investors Grapple With Signs of Unrest and from NY Times – The Stock Market…

Thesys Technologies vs. Goliath; OIC Outreach to Advisers; Vol bets and the VIX Standard

Observations & Insight Thesys vs. Goliath: That’s One Big CAT Spencer Doar – JLN FINRA, FIS, Cinnober, Thomson Reuters – what do they have in common? They are just a few of the 30 bidders who lost out on developing the Consolidated Audit Trail (CAT) to Thesys Technologies LLC, a subsidiary of the proprietary trading firm Tradeworx, founded in 2009. To develop and implement the CAT, Thesys partnered with IBM (which was a bidder on its own, too), as well Rosenblatt Securities and law firm Latham & Watkins. “You had some big tech companies that really understand tech but maybe…

No, Not the VIX – the VSTOXX Standard

Even your dog has heard of the VIX, the Chicago Board Options Exchange’s benchmark volatility index, but the VSTOXX, the benchmark for volatility in European stocks, is less of a household name in the U.S. Eurex has been trying to change that by adding more and more functionality to their VSTOXX products, starting out with spot prices and futures contracts on the index and then more recently moving into options on futures and ETNs. Yesterday, Eurex and Rival teamed up for a meetup in Chicago at a popular Randolph Street restaurant to share the latest about VSTOXX and  Rival Systems’…

Big FX bets bunched around Jackson Hole meeting; Options trader gets 1.5 years in prison; VIX Options Volume Record Standard

Observations & Insight No, Not the VIX – the VSTOXX Sarah Rudolph – JLN Even your dog has heard of the VIX, the Chicago Board Options Exchange‘s benchmark volatility index, but the VSTOXX, the benchmark for volatility in European stocks, is less of a household name in the U.S. Eurex has been trying to change that by adding more and more functionality to their VSTOXX products, starting out with spot prices and futures contracts on the index and then more recently moving into options on futures and ETNs. Yesterday, Eurex and Rival teamed up for a meetup in Chicago at…

DRW to Buy HFTer RGM; Tabb Options LiquidityMatrix; Investors remain bearish on volatility Standard

Observations & Insight Why You Should Bet Your Career on Chicago FinTech – Michael Kraines Education.MarketsWiki.com “Twenty years ago it was about consolidation. It was about exchanges being smashed together and brokerages being smashed together. Now it’s going to be about technology being added to these traditional, old school businesses.” In this video from MarketsWiki Education’s World of Opportunity event in Chicago, Michael Kraines, chief financial officer and chief commercial officer of Trading Technologies, discusses the growing Chicago fintech landscape and why the field can be a solid career choice. Kraines points out investment in Chicago fintech in the first…

Plummeting Volatility Gauges Mask Lingering Fears in Options; Some Soros Fund holdings may profit if stocks fall – SEC filings; Massachusetts regulator investigates trade order ‘kickbacks’ Standard

Lead Stories Plummeting Volatility Gauges Mask Lingering Fears in Options Luke Kawa – Bloomberg The sharp drop in volatility may hide the extent to which U.S. stock market fears still persist. So says Macro Risk Advisors head of derivatives strategy Pravit Chintawongvanich, who has zeroed in on September VIX call options with a strike price of 20 to show that there are still concerns about a sharp selloff in the near future. jlne.ws/2w6J83j ***JB: Bloomberg chart suggesting something similar. Some Soros Fund holdings may profit if stocks fall: SEC filings Trevor Hunnicut – Reuters Soros Fund Management LLC, whose billionaire…