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Tag Archives: CBOE

Options Market Quality Hovers at Best Levels in Five Years Newsletter,Options

Lead Stories Options Market Quality Hovers at Best Levels in Five Years TABB Forum Options LiquidityMatrix Year-to-date options volumes remain strong, with September 2018 volume up almost 44% year over year. For the first nine months of 2018, more than 3.6 billion contracts have traded, an increase of 18.7% versus the first nine months of 2017. /goo.gl/8g3D5Z ****SD: Due to the record setting pace in 2018, all exchanges are experiencing growth in volumes, however, market share is shifting a bit. “Cboe year-to-date market share has dropped, from 41.8% to 37.7%, and Nasdaq’s share is down, to 35.4% from 36.8%. NYSE…

Why Hedge Funds Will Stick With Ever-Risky Short Volatility Trades Newsletter,Options

Lead Stories Why Hedge Funds Will Stick With Ever-Risky Short Volatility Trades Yakob Peterseil – Bloomberg It’s a familiar spectacle on Wall Street: the short-volatility complex takes a beating — and prophets of doom warn money managers the strategy is running out of steam. But the trade isn’t going to be pounded into submission, even as late-cycle bears sharpen their claws and assets in passive products that bet against equity-price swings shrink to their smallest since 2013. /bloom.bg/2EqbOce Does Increased Volatility Mean The Bull Market Is Over? Adam Sarhan – Forbes The short answer is only time will tell. But…

Upstart Exchange Looks to Profit From Wall Street Fear Newsletter,Options

Lead Stories Upstart Exchange Looks to Profit From Wall Street Fear Gunjan Banerji – WSJ (SUBSCRIPTION) Just after the stormiest week for U.S. markets in months, investors may get a new way to bet on Wall Street fear. Miami International Holdings Inc., a small but rapidly growing exchange operator, won regulatory approval on Friday for options on an index that tracks expectations for U.S. stock volatility. The measure, called SPIKES, competes head-to-head with the already established Cboe Volatility Index, known as the VIX. /on.wsj.com/2CKKtQC ****SD: Recall that Bats (pre-CBOE acquisition) gave SPIKES a try, but it never had a product…

Pound volatility; The professor behind the VIX manipulation paper; VIX action JLN Options Newsletter,Newsletter,Options

Observations & Insight A Volatile Week: Having Fun? Spencer Doar – JLN First, a correction (not in the market sense): as many of you probably realized, the cybersecurity blog we had in yesterday’s newsletter – The Complex Realities of a Cybersecurity Program – was not from the Cboe, but from the OCC. Apologies for any confusion. Second, the correction (now about markets). An implicit short vol unwind? The choppy end of a bull cycle? Bond yields? Trade war? A combo? Who’s to say. A brief recap: VIX contango was/is back and spot VIX momentarily hit 28 this week. Gold caught…

VIX Curve(ball); Bond Volatility; Concannon on the SEC and Trading Incentives JLN Options Newsletter,Newsletter,Options

Observations & Insight CFA Institute And FINRA Foundation Study Debunks Common Myths About Millennials And Investing FINRA Conventional wisdom paints a picture of millennials as aggressive, knowledgeable, and confident when it comes to investing, but a new research study sponsored by CFA Institute and the FINRA Investor Education Foundation debunks common assumptions about millennial investors. The research, titled “Uncertain Futures: 7 Myths About Millennials and Investing,” explores the attitudes and behaviors of millennials when it comes to finances and investing. /goo.gl/4x1yXL ****SD: Great study. Love this debunking as I never ever have heard any of my millennial cohorts express their…

ErisX Enters the Crypto World With New Spot and Futures Platform Blog,CryptoMarkets,Exchanges, OTC & Clearing,Regulation

It looks like there is a growing market for regulated exchange trading of cryptocurrencies. ErisX, the U.S. futures exchange best known for offering listed interest rate swap futures, just announced plans to launch a derivatives exchange (DCM) and clearing organization (DCO) that will offer digital asset futures and spot contracts on one platform. The exchange plans to offer contracts on bitcoin, bitcoin cash, ethereum and litecoin. This is going a step beyond the CME and the Cboe, which began offering cryptocurrency futures in December 2017. Eris needs a DCO license to clear its crypto contracts; that application is pending with…

Investors Say They Were Harmed by Manipulation in Volatility Products Newsletter,Options

Observations & Insight OCC Cleared Contract Volume up 8.7 Percent in September Press Release OCC, the world’s largest equity derivatives clearing organization, announced today that total cleared contract volume in September reached 365,152,938 contracts, up 8.7 percent compared to September 2017 volume of 335,867,813. OCC’s year-to-date average daily cleared contract volume is up 18.6 percent with 20,209,877 contracts compared to 17,038,958 contracts in 2017. Options: Overall exchange-listed options volume reached 358,572,914 contracts in September, up 10.3 percent from September 2017. Equity options volume reached a total of 322,566,988 contracts, a 14.3 percent increase from September 2017. This includes cleared ETF…

Oil Options Traders Buy Into Talk of Crude Topping $100 a Barrel Newsletter,Options

Lead Stories Oil Options Traders Buy Into Talk of Crude Topping $100 a Barrel Alex Longley – Bloomberg Oil trading executives spoke, and the options market liked what it heard. The total number of options traded on Brent crude surged on Monday to about 274,000 contracts, the highest ever, data showed. The flurry was driven by record call trading — including bets on $100 a barrel or more — as the global benchmark reached an almost four-year high and major oil trading houses publicly predicted the return of triple digit crude for the first time since 2014. /bloom.bg/2zsUsab ****JB: MarketWatch…

AQR Quants Say Volatility Bets Can Lose Even If They’re Right Newsletter,Options

Observations & Insight The Spread – Record Highs – 9/21 JohnLothianNews.com To put it bluntly, action in marijuana stocks this week was nuts. Watch the video and see the stories referenced here » +++++ Trump to meet with Rod Rosenstein Thursday after conflicting reports about deputy attorney general’s departure Dan Mangan, Jacob Pramuk and Kevin Breuninger – CNBC President Donald Trump will meet with Deputy Attorney General Rod Rosenstein on Thursday amid swirling reports that the No. 2 Justice Department official’s departure is imminent. /cnb.cx/2MXmMFn ***SD: Very confusing. All I know with confidence is that it is a rainy day…