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Tag Archives: bond volatility

Low Bond Vol Creates Trove of Cheap Bets; Wells Fargo/LJM Update JLN Options Newsletter,Newsletter,Options

Lead Stories Low Bond Volatility Creates Trove of Cheap Bets; Whatever happened to rising interest rates sparking market turbulence? Brian Chappatta – BloombergQuint The Federal Reserve is raising interest rates, and that’s going to increase volatility. Or at least that was the nearly unanimous view of investors worldwide heading into 2018. But aside from “volmageddon” in early February, that simply hasn’t been the case. Instead, the stock market’s fear index (formally the Chicago Board Options Exchange Volatility Index) is firmly below its five-year average. Interest rates are even quieter, with Bank of America Corp.’s MOVE index, which tracks price swings…

Strong 2017 Options Volumes; FX Options Traders Get Wake-Up Call; Cryptocurrencies Steal Volatility Newsletter,Options

Lead Stories Editor’s Note: In light of Martin Luther King Jr. Day, there will not be a JLN Options newsletter on Monday. US Options Volumes Strong in 2017 Despite Record Low Volatility Tabb Options Liquidity Matrix US equity options volumes in 2017 increased 3.1% over 2016 totals, reaching 4.19 billion contracts, the third-highest annual total in the past 10 years. 2017’s volume was surpassed only by the record-setting 4.56 billion contracts in 2011 and 4.27 billion contracts in 2014. The volume growth in 2017 is indicative of clients’ increasing use of equity options to manage risk as well as the…

As Stocks Reach New Highs, Investors Abandon Hedges; Bond Market Vol at Multidecade Lows Newsletter,Options

Observations & Insight Top Options Stories of 2017 Countdown JohnLothianNews.com Listicles are occasionally the butt of jokes – Buzzfeed knows – but what about listideos? With 2017 in the bag, we at JLN thought we’d recap the year in options with a list of the big stories and trends – and there were a number. Below are links to stories referenced in the countdown. Watch the video and read the rest here » Lead Stories As Stocks Reach New Highs, Investors Abandon Hedges Gunjan Banerji – WSJ Big stock-market gains are leading a number of investors to abandon defensive positions…

Talk of CAT Delay; Bond vol shows signs of life; Investors fearless Newsletter,Options

Lead Stories Exchanges in talks with U.S. SEC to delay new audit system: sources John McCrank – Reuters Stock exchanges are in talks with the U.S. Securities and Exchange Commission to possibly delay the rollout of a new system aimed at helping the regulator better police the markets, sources familiar with matter the told Reuters. /goo.gl/WCiMXs ****SD: They’re going to have to make a decision shortly. SROs are scheduled to start reporting data to the central repository on November 15. Bond Volatility Shows Signs of Life as Rates Divergence Widens Cormac Mullen – Bloomberg As U.S. Treasury yields climb to…

Suspect trading in Equifax options; Risks From ‘Shadow Insurance’ Business; $1 Silver Options Bet Newsletter,Options

Observations & Insight House passes hurricane aid, debt ceiling extension, government funding Christina Wilkie – CNBC The House of Representatives on Friday overwhelmingly backed the Senate’s version of a bill raising the nation’s borrowing limit for three months, funding the government and providing $15.3 billion in aid for victims of Hurricane Harvey. jlne.ws/2weDgQP ****SD: It’s not your imagination — there are more curveballs thrown of late. See the Sports Illustrated cover story from May – Forget velocity, the curveball’s resurgence is changing modern pitching. ++++++ TradeStation Expands “TradeStation Salutes” Program to Include First Responders Program Now Offers Commission-Free Trading for…

HFT – Not so flashy anymore; Vicious VIX; JPM Head Quant Warns Of “Catastrophic Losses” For Short Vol Strategies Newsletter,Options

Observations & Insight An Excerpt of Note Spencer Doar – JLN I am re-reading “Liar’s Poker” because…I don’t really know why — maybe it’s just summer instinct with all these reading lists floating around. Anyway, about a quarter of the way in, there’s a notable anecdote from Michael Lewis’ training program at Salomon: “‘When you trade equity options,’ asked my friend Franky, ‘do you hedge your gamma and theta or just your delta? And if you don’t hedge your gamma and theta, why not?’ The equity options specialist nodded for about ten seconds. I’m not sure he even understood the…

One Place Volatility Hasn’t Gone Home to Die Is the Nasdaq 100; Bond volatility – all aboard the big dipper?; Pound Seen Losing the Most If U.K. Vote Delivers No Winner Newsletter,Options

Observations & Insight Cold as ICE: Sprecher asks UK, How much do you love me? Jim Kharouf – JLN To hear one exchange leader tell it, UK markets could use a little more love. At the 10th annual FIA IDX conference on Tuesday, ICE Chairman and CEO Jeff Sprecher said UK regulators have not communicated with ICE much about how they could work together and keep ICE Europe’s operations more firmly in London. In the wake of Brexit and the upcoming MiFID II rules in January, not to mention the ongoing questions about equivalent financial regulations after the UK and…

Chinese Backers Planning Singapore’s Third Derivatives Exchange; Some Big Bond Managers Are Buying Volatility Again; Credit Suisse has its own ‘Fear Barometer,’ and it’s flashing red Newsletter,Options

Observations & Insight Editor’s Note Due to the Good Friday holiday, there will be no JLN Options newsletter tomorrow. We will be back in action on Monday. Have a great weekend! Lead Stories Chinese Backers Planning Singapore’s Third Derivatives Exchange Bloomberg Singapore may be set to get a third derivatives exchange, this time backed by China. If the new bourse, which would be called Apex, goes ahead, it would be operated by Asia Investment Pte, according to people with knowledge of the matter. Asia Investment is majority-owned by former China Financial Futures Exchange and Dalian Commodity Exchange chief Eugene Zhu…

Freakish Peace Envelops Bull Market as Eighth Year Rolls By; While Donald Trump may have stocks up, some hedge funds managers are bracing for a selloff; Fed Takes Fear Out of Markets as Volatility Plunges in Bonds, FX Newsletter,Options

Observations & Insight Long-Time Options Industry Leader Gina McFadden is First Woman to Receive 2017 Sullivan Award OCC OCC, The Options Industry Council (OIC) today announced that Gina McFadden, a long-time leader in the U.S. listed equity options industry, will be the first woman to receive the 2017 Joseph W. Sullivan Options Industry Achievement Award. This award is given to individuals in recognition of outstanding contributions to the U.S. options industry. The award will be presented at the 35th Annual Options Industry Conference on May 12 in Scottsdale, Arizona. jlne.ws/2mYvRoO ****SD: Congratulations! She is also our MarketsWiki Page of the…