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Category Archives: Options

Options news updates from John Lothian News.

The low vol feedback loop; EU shuts door on electronic access providers; More exchange consolidation? Standard

Observations & Insight Ed Tilly – Staying Ahead of the Technology Curve MarketsWikiEducation.com In this video from MarketsWiki Education’s Intern Recruiting Event event in Chicago, Ed Tilly, chairman and CEO of Cboe Global Markets, discusses how changes in technology force you to adapt to stay ahead of the curve. Tilly breaks down what’s going on in the exchange space and how the Cboe has changed over the years. With the explosion of screen trading and the end of open outcry trading, exchanges have had to roll with the punches and make sure customers are happy. Tilly’s goal is to bring…

OCC tech upgrade; Robinhood’s free options trading; 50 Cent’s losses Standard

Lead Stories Tech Upgrade Commands CFO’s Focus; Amy Shelly of Options Clearing Corp. faces several challenges in replacing the organization’s outdated platform. David McCann – CFO Magazine The privately held financial-market utility that settles and clears transactions for all 15 U.S. option exchanges and 3 futures exchanges has a problem: Its technology is woefully outdated. /goo.gl/Kq1s6Y ****SD: Lots for OCC to consider: Roll it out piecemeal or all at once? Finance the project how? Buy or build? For more, see JLN’s piece earlier this year – Cloudy with clearing: What the next clearing house looks like ***SR: Amy Shelly is…

Volatility Is Low But Ambiguity Is Sky High; Clearing forex options; War on Dutch prop shops Standard

Observations & Insight (Click for larger image) Lead Stories Volatility Is Low But Ambiguity Is Sky High Ben Eisen – WSJ Two academics are rolling out a new measure of market fear that suggests investors aren’t nearly as complacent as they seem. The gauge of so-called ambiguity, meant to chronicle the degree of uncertainty investors have in the probabilities they use to make decisions, has been at all-time highs in recent months, indicating that there’s more fear built into the stock market than common measures of volatility suggest. The Cboe Volatility Index, a popular metric for tracking fear in the…

Bitcoin Options Would Tame This Beast; High Hopes for Low Vol; Death of FX Volatility Standard

Observations & Insight The Spread – Week of 12/4 – 12/8 JohnLothianNews.com A JLN debut! The Spread is a brief weekly recap of some of the notable activity in the options world. (It won’t always be this crypto heavy – we swear.) The following are stories referenced in this week’s episode of The Spread: WSJ – What Could Stir Up the VIX? Higher Inflation Bloomberg – Pound’s Acid Test on Brexit Is Yet to Come for Options Traders Highly Evolved Vol Blog – The Crowded Short Vol Trade JLN – Cboe Throws Launch Date Punch at Crosstown Rival CME Bloomberg…

The Pound’s Brexit Test; FX Flash Crashes; Basel Rules Standard

Observations & Insight Sunday, Sunday, Sunday Spencer Doar – JLN My fantasy football team was bad this year. The Detroit Lions in 2008 bad. I went 0-13. A mathematically inclined friend in the same league ran the numbers – not sure of the specifics, but he used ESPN’s point predictions versus actual performance – and his calculations showed that my abhorrent results were nearly three standard deviations outside the norm. I would not have found this nearly as amusing before I started covering the options space and following earnings seasons. Bottom line, that frees up some of Sunday night. Good…

Inflationary VIX shock potential and other vol catalysts; Bitcoin pushback Standard

Observations & Insight North Korea says U.S. threats make war unavoidable as China urges calm Soyoung Kim, Heekyong Yang – Reuters Two American B-1B heavy bombers joined large-scale combat drills over South Korea on Thursday amid warnings from North Korea that the exercises and U.S. threats have made the outbreak of war “an established fact”. /goo.gl/g6LF1Y ****SD: We’ve made it this far in the “year of low volatility.” This North Korea update and the below Palestinian story are two of the first things I see scanning my feeds this morning. The other story I saw? Bitcoin hits $16k. No words……

CME fee rises vex trading industry; Decline of OTC derivatives trading; VIX research Standard

Observations & Insight Cboe chief on Jamie Dimon: He’s welcome to try shorting bitcoin Jeff Cox – CNBC If JPMorgan Chase CEO Jamie Dimon wants to bet against bitcoin, the head of Cboe Global Markets is only too happy to give him the venue to place his wager. jlne.ws/2BLJ3l7 ****SD: Jamie Dimon probably regrets expressing an opinion on BTC. He thought he’d throw a punch, not realizing he’d become the bag. +++++ Cboe Throws Launch Date Punch at Crosstown Rival CME Spencer Doar – JLN Aren’t people supposed be getting into holiday mode? Isn’t December supposed to be slow, with…

The Crowded Short Vol Trade; Earnings drive swings; Monthly volumes Standard

Observations & Insight Cboe Throws Launch Date Punch at Crosstown Rival CME Spencer Doar – JLN Aren’t people supposed be getting into holiday mode? Isn’t December supposed to be slow, with nothing but junior staff running around trying not to mess things up? In the cryptocurrency space, that’s clearly not the case. The CFTC on Friday said CME Group and Cboe Global Markets were okay to launch their respective bitcoin futures products through the self-certification process. CME quickly announced it would launch bitcoin futures on December 18, and then Monday morning, Cboe announced a December 10 launch date and free…

Cboe Plans December 10 Launch of Bitcoin Futures Trading; VIX Options Set New Daily Volume Record on Friday, December 1 Standard

Lead Stories Cboe Plans December 10 Launch of Bitcoin Futures Trading Cboe Cboe Global Markets, Inc., one of the world’s largest exchange holding companies, today announced that Cboe Futures Exchange (CFE), plans to offer trading in bitcoin futures beginning at 5:00 p.m. CT on Sunday, December 10, 2017, at the start of Global Trading Hours. Monday, December 11, will be the first full day of trading, and trading will be free1 through December. /goo.gl/QmQvjD ****SD: From Bloomberg – Cboe Says It Will Start Bitcoin Futures Trading on Dec. 10, Giving it a Week of Exclusivity VIX Options Set New Daily…