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Category Archives: Options

Options news updates from John Lothian News.

Despite What You Read, The Options Industry Is Doing Great Standard

Observations & Insight Trump warns of stock market crash if he’s ever impeached: ‘I think everybody would be very poor’ Nataly Pak and Jordyn Phelps – ABC News Two days after President Trump’s former personal attorney pleaded guilty to illegal campaign contributions, the president ripped Michael Cohen for “flipping” to accept a plea deal, while also warning that the stock market would tank if the Democrats win control of Congress and move to impeach him. /abcn.ws/2o18olg ****SD: He also blasted “flippers” and said “I will stay uninvolved” after slamming Sessions, Justice Dept. As to the market tanking story above, Bloomberg…

Options Battle Brews; Volatility Trades Are Reborn Standard

Observations & Insight EU expects delay in Brexit deal beyond October target Gabriela Baczynska – Reuters European Union leaders are likely to have to hold an emergency summit in November to consider any Brexit agreement struck with Britain, missing an informal deadline the previous month, diplomats in Brussels said. /reut.rs/2w6N4zd ****SD: Who in their right mind thought this was going to go according to schedule? The Financial Times has EU vows to get tough on UK’s market access after Brexit. From that story – “Dombrovskis said Brussels was not offering any kind of ‘super equivalence’ to the UK, and that…

CME Strike Prices and Cboe’s Proposed Rule Changes Standard

Observations & Insight The Longest Market Rally in History? Take a Closer Look Elena Popina – Bloomberg You’ve probably heard: it’s the longest bull market ever. You’ve probably also heard: no it isn’t. What’s the story? According to a loose consensus, bull markets are rallies that go beyond 20 percent and are never interrupted by a 20 percent fall. In many corners of Wall Street, that means the S&P 500 rally that began in March 2009 is about to surpass all that went before. /bloom.bg/2nUYXDV ****SD: As a friend once said, “Agree to disagree? I’m not agreeing to anything.” (Also,…

Traders Bet U.S. Stocks Are About to Make a Big Move, Somewhere Standard

Observations & Insight The Spread – Caddyshack Market – 8/17 JohnLothianNews.com Another week, more Turkey worries. We don’t talk about that at all in this week’s options news recap, instead taking a peek at security, average bid/ask spreads and regulation. Watch the video and see the stories referenced here » ++++ Trump Is Complaining to Donors in the Hamptons About Powell’s Rate Hikes Jennifer Jacobs and Saleha Mohsin – Bloomberg President laments interest rate increases at GOP fundraiser; Federal Reserve has raised rates five times in Trump’s term President Donald Trump said he expected Jerome Powell to be a cheap-money…

Kessler Topaz, Quinn Emanuel To Lead VIX MDL; Goodbye MANA Partners Standard

Lead Stories Kessler Topaz, Quinn Emanuel To Lead Volatility Index MDL John Petrick – Law360 (SUBSCRIPTION) An Illinois federal judge on Thursday appointed Kimberly A. Justice of Kessler Topaz Meltzer & Check LLP and Jonathan C. Bunge of Quinn Emanuel Urquhart & Sullivan LLP as lead co-counsel in multidistrict litigation over alleged Chicago Board Options Exchange’s volatility index manipulation. /goo.gl/yHqLZu Good-bye MANA Partners Volatility Futures and Options MANA Partners, a much-hyped trading firm founded by Manoj Narang (ex-Tradeworx) is in a total tailspin after launching trading in January 2017. bit.ly/2MUQuvq Trump asks SEC to mull half-year corporate filings vs. quarterly…

Tradeweb Adds Options RFQ Functionality; Volcker Rule Revision Update Standard

Observations & Insight Thursday’s Grab Bag Spencer Doar – JLN Remember how that LJM fund went kaput in epic fashion in February? Remember how the gargantuan loss prompted a whole bunch of investor lawsuits? Well, here’s the update: the lead plaintiffs need to file their class action complaint today. (As of publishing time, it does not appear available.) The defendants need to respond to that complaint by October 1. If defendants move to dismiss, then the ball is back in the plaintiffs’ court to respond by November 5. The OCC will be performing system maintenance on Sunday – MyOCC and…

July Options Market Quality Best in 5 Years; Cboe delays FLEX rule Standard

Observations & Insight Significant short-term market impact to no-deal Brexit – Hunt Gederts Gelzis – Reuters The short-term market impact will be significant if Britain leaves the European Union without a deal, Foreign Secretary Jeremy Hunt said during a visit to Latvia on Wednesday. /reut.rs/2PbRigX ****SD: Not that this isn’t important to note, but I wouldn’t have this as high up if it weren’t for the great picture of Jeremy Hunt that accompanies the story. Lead Stories July Options Market Quality Best in Almost 5 Years TABB Forum Options LiquidityMatrix The average bid/ask spread in July narrowed, from 0.26 in…

Controversial US derivatives rules resurface; Options transparency problems Standard

Observations & Insight Tuesday’s Miscellany Spencer Doar – JLN Via Jim Kharouf – Longtime options industry executive Kevin Murphy has written a new book, The Three Rooms, which focuses on helping increase awareness of your own thoughts and emotions. Can’t wait to read it. E*TRADE reported its July activity. DARTs were down 8 percent from June but up 20 percent from a year ago. Derivatives represented 34 percent of DARTs. A PowerPoint presentation from the CAT NMS, LLC Operating Committee covering recent Consolidated Audit Trail updates can be found here. Employee stock options are not normal fodder for this newsletter,…

OCC’s move to ‘Cover 2’ won’t cost members more, CRO says Standard

Observations & Insight The Spread – 8/10 – Pump up the Vol(ume) JohnLothianNews.com In this week’s recap of happenings in the options world we delve into some confusing terms, Spinal Tap and Recep Erdogan’s plight. Watch the video and see the stories referenced here » ++++ Turkey’s Collapse Sinks Emerging Markets on ‘Manic Monday’ Rita Nazareth and Ben Bartenstein – Bloomberg (SUBSCRIPTION) Turkish measures could be too little, too late, analysts say; Argentine century bond yield surges to 10% as peso tumbles Turkey’s market carnage rippled across emerging markets, sending both stocks and currencies toward their lowest levels in a…