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Tag Archives: OCC

Cboe turns to machines to police VIX; OCC’s capital plan; Chinese copper options JLN Options Newsletter,Newsletter,Options

Observations & Insight T.G.I. (Almost) F. or: How I Learned to Stop Worrying and Love Pot Stock Volatility Spencer Doar – JLN Weed stocks are way more volatile than the connoisseurs of the industry’s products it seems, man. Reuters had this story yesterday – Tilray options on fire as pot-stock frenzy grips market. The craziest stat from that article was “For the week so far, the combined trading volume for Tilray and Cronos Group options was roughly 680,000 contracts, or about 2.7 percent of overall U.S. single stock options activity, Trade Alert data showed.” That stat is followed by a…

OCC Volumes; Flash Crashes; Position Limits JLN Options Newsletter,Newsletter,Options

Observations & Insight Remember, Remember the 15th of September Spencer Doar – JLN It’s that time of year again – the annual financial crisis reflection period. This year markets have a nice, round anniversary number to glom onto. I believe 10-year anniversaries traditionally merit gifts of tin or aluminum. I’m unsure who would be best to send those trinkets to… So there are plenty of stories floating around with plenty more to come. Here is what I expect to be one of many article lists covering issues, lessons and prognostications related to the global financial crisis. (I do hope the…

OCC risk management plans; One way vol bets a “fool’s errand”; Melt-up concerns JLN Options Newsletter,Newsletter,Options

Lead Stories OCC Enhances Resilience with Regulatory Approval of Recovery and Wind Down and Associated Recovery Tools John Davidson, President and COO, OCC On August 23, OCC, the world’s largest equity derivatives clearing organization, received approval from the U.S. Securities and Exchange Commission of the company’s proposed recovery tools and proposed recovery and orderly wind-down (RWD) plan. These are critical risk management tools designed to enable OCC to enhance its resiliency as a Systemically Important Financial Market Utility (SIFMU) and successfully manage extreme market disruptions in future financial crises /goo.gl/CYjzcL One-Way Volatility Bets Seen as ‘Fool’s Errand’ by 6,000% Winner…

The Spread – Thin Crust Pizza – 8/24 The Spread,Video,video

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.   Here are the relevant links: WSJ – A Messy Battle Brews in the Options Market Tabb Forum – Despite What You Read, The Options Industry Is Doing Great OCC – S&P Says OCC Credit Rating Unaffected by SEC Approval of New Financial Safeguards Framework Tabb Forum – July Options Market Quality Best in Almost 5 Years Produced by Mike Forrester…

VIX Changes; OCC Plans; Eurodollar Whale JLN Options Newsletter,Newsletter,Options

Observations & Insight VIX (and Other Friday Stuff) Spencer Doar – JLN The Cboe quietly dropped a proposal to amend its interpretation of rule 6.2, which you might know better as “stuff pertaining to VIX settlement.” The proposed rule change expands/clarifies the exchange’s interpretation of “strategy orders” and “non-strategy orders” to better determine whether or not someone is gaming the settlement calculation. Fed Chair Powell’s comments from Jackson Hole are in. He stuck by his guns, saying that steady rate hikes are the best way to keep the recovery going. (I’m mildly surprised there has not been a presidential tweet…

Despite What You Read, The Options Industry Is Doing Great JLN Options Newsletter,Newsletter,Options

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 JLN Options Newsletter,Newsletter,Options

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…

A Messy Battle Brews in the Options Market John Lothian Newsletter,Newsletter

First Read Hits & Takes By JLN Staff Whenever CME Group and Nex Group close their deal, it is expected to boost to CME’s international revenues 35 percent, according to a Q1 report from the exchange.~JK ++++ Tom Scanlan and NEX Group ran a Trading Tech 300 merit badge workshop yesterday in Chicago, featuring the geocaching merit badge. Thank you to Tom and NEX for their great contributions to Boy Scouts. More data on the problem with overfitting: according to a recent study covering 215 alternative beta strategies from 17 investment banks (which included both backtest and live data), only…

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…