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Tag Archives: hedge funds

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…

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…

Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders Newsletter,Options

Observations & Insight Monster’ Hurricane Florence to pummel U.S. Southeast for days Ernest Scheyder – Reuters Hurricane Florence, on track to become the first Category 4 storm to make a direct hit on North Carolina in six decades, howled closer to shore on Tuesday, threatening to unleash deadly pounding surf, days of torrential rain and severe flooding. /goo.gl/J6r6DL Lead Stories Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders Logan Kane – Seeking Alpha Robinhood is marketed as a commission-free stock trading product but makes a surprising percentage of their revenue directly from high-frequency trading firms. It…

Bad bets offer a cautionary tale to investors; Second-guessing the volatility of markets can be costly Newsletter,Options

Observations & Insight The Spread – The Colo Down-low – 9/7 JohnLothianNews.com “The Spread” hasn’t covered Aurora, Ill. during its time on the web. We tick that box in this week’s recap. Watch the video and see the stories referenced here » Lead Stories Bad bets offer a cautionary tale to investors; Second-guessing the volatility of markets can be costly Brendan Geeley – FT (SUBSCRIPTION) Over several days in early February of this year, two retail exchange traded products lost more than 80 per cent of their value. Close to $3bn was wiped out. One product, which traded as XIV,…

The Big Hedge-Fund Strategy That Isn’t Working Newsletter,Options

Observations & Insight The Spread – Thin Crust Pizza – 8/24 JohnLothianNews.com Most of the time, we go for a smattering of everything on “The Spread.” But this week there was a story that got a lot of clicks and stirred up the pot, so we thought we’d just address the issues that arose from that. Watch the video and see the stories referenced here » ++++ Monday Mutterings Spencer Doar – JLN There was a breakthrough in trade negotiations with Mexico today (link to Fox Business). The two sides agreed to a new pact called the United States Mexico…

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

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…