Lead Stories Shorties Options Will Stand TallA new, shorter options contract introduced last week will give investors more flexibility in hedging event-specific risks. Steven M. Sears, Barron’sMost people will tell you they’re long-term investors. They think they are able to ignore the distractions that make others panic and sell. They think they buck the trends, and have the equanimity to buy when others are selling and sell when others are buying.http://jlne.ws/UPga9A***First Weeklys, now shorties, a tool to hedge against volatility-producing market events.– SR Vix volatility index depicting bear market behaviorJeff Greenblatt, FuturesI have good news and bad news. I know…
Tag Archives: options
Lead Stories Flight From Risk Extends Beyond AppleRandall W. Forsyth, Barron’sOnly buy stocks that go up. If they don’t go up, don’t buy them. That was the investment advice offered by the late humorist Will Rogers, and it seems to be followed by investors as much as ever.That has led them to flock to Apple (ticker: AAPL) at its peak of $705.07 a share in September and to flee the stock en masse as it dropped to a six-month low Thursday of $525.62. As of this writing, it fell another $11.14, or 2.1%, to a recent $514.48.http://jlne.ws/TIdnxQ*** “Apple’s market capitalization…
John Lothian Newsletter: S Korea Plans Tax On Options And Futures; U.S. Banks Told To Make Plans For Preventing Collapse; Another Day, Another Trading Glitch: RBS Owns EUR/CHF Spike John Lothian Newsletter,Newsletter
South Korea is planning a transaction tax for futures and options activity, and not surprisingly some say that the move could harm exchange volume in that country. Formerly-secret plans regarding the banking industry come to light, showing that the U.S. government wants strategies in place for how banks might manage their own demise, and that government help should not be assumed in a future crisis. RBS shuffles to the front of the class and owns up to a fat-finger currency trade that created excessive algo activity and a big price spike.
CFTC Rule 1.73: Jim Downs of Connamara Systems Talks About New Options Rule Interview,Regulation,Video
A little known CFTC rule (Rule 1.73), part of the Dodd-Frank Act, is gaining attention of futures brokers. Jim Downs, founder and CEO of Connamara Systems, explains the basics of Rule 1.73, which will force FCMs and swaps participants to create new market-based limits on options positions, as well as monitor liquidation costs, options stress tests and other compliance elements. Downs talks about the key components of the new rule, which goes into effect on October 1, and what impact it may have on the industry. Interview by John Lothian News editor-in-chief Jim Kharouf.
Robert Fitzsimmons is the CEO of Optionshop, an online futures broker specializing in the execution of options on futures, which is expected to launch in September of 2012. Fitzsimmons spoke with John Lothian News senior editor Sarah Rudolph about the interest in commodities as an asset class, the dislocation in the markets and the need for retail traders to use options to minimize their commodities risk.
JLN Options editor Sarah Rudolph spoke to Steve Crutchfield, CEO of the options business at NYSE Amex, about the 2012 Security Traders Association of Chicago (STAC) Conference and upcoming trends impacting the options market. Crutchfield, who spoke on a STAC panel titled “Cross Product Exchange Leadership,” discussed the Volcker rule and its effect on options, as well as trends in options volumes for 2012. Visit the NYSE Amex website. To see the agenda from this most recent STAC conference, click here.
John Lothian News Top Stories of 2011 Blog,Environmental/Energy,Financials,Managed Futures,Metals,Options,Regulation,Tech / HFT
We’ve created a list of the five most influential stories of 2011 for each of our newsletters, as well as from MarketsReformWiki, to help define what was a very eventful year across almost every market and industry sector. The year was punctuated by one major story inside another. The bankruptcy of MF Global, which requires its own top five list, became tied to another top story, the European sovereign debt crisis sequel – Greece and Italy. Of course, the downgrade of U.S. debt in August and assorted European states raised the ire of politicians and regulators who called for more…
Matthew Hunter has been named head of surveillance for the U.S. Commodity Futures Trading Commission (CFTC). According to CFTC spokesman R. David Gary, Hunter is filling the position as part of a reorganization at the regulatory agency that began Oct. 9. Hunter was previously deputy director of the CFTC’s market and trade practice surveillance branch, division of market oversight. The CFTC’s market surveillance program has the stated intention of preserving the economic functions of futures and option markets. The market surveillance program’s primary mission is to identify situations that could pose a threat of manipulation and to initiate preventive actions.
Anthony Neglia is president of Tower Trading of New York City, an open outcry floor brokerage firm specializing in options on precious metals at the New York Mercantile Exchange (NYMEX). His commentary regularly appears on CNBC and TheStreet.com. John Lothian News editor-at-large Doug Ashburn spoke with Neglia about volatility in the metals market, position limits, the role of speculators, and the future of the metals space.