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Tag Archives: realized volatility

Vol-cano Erupts – How’s Seth Golden Doing? Blog,Commentary,Options

Last year there were a few stories that came across the desk regarding the juniorization of firms and how removing experienced senior personnel could present risks of its own. After all, if you came into the markets in the 2010s, how would you have experience with crazy drawdowns? (Myself included.) Maybe some are ahead of the curve and have at least seen Trading Places. Well, a lot of staff just gained some experience. The options and volatility stories of the last few days are intertwined and generally fall into the following storyline in some way: 1) Markets finally welcomed volatility…

OCC cleared volume up 42 percent; We actually don’t know; Beware low vol or long live low vol? Newsletter,Options

Observations & Insight January 2018 Options Exchange Marketshare vs January 2017 via OCC ++++++ Detailed January Volume Breakdown via OCC Lead Stories OCC Cleared Contract Volume Increased 42 Percent in January OCC OCC, the world’s largest equity derivatives clearing organization, announced today that cleared contract volume in January was up 42 percent from January 2017 with 479,812,469 contracts. Average daily volume at OCC is up 35 percent in 2018 with 22,848,213 contracts. OCC cleared futures volume is up 23 percent in January with 11,907,702 contracts. OCC’s stock loan program reported strong volume numbers with 233,482 transactions in January, up 29…

OCC plans cash management fee; Short-vol crushed in January; Selling time to traders Newsletter,Options

Observations & Insight Slippery Slope: Let’s Let Markets Decide On New Contracts Jim Kharouf – JLN Do exchanges need further regulation on the contracts they launch? That is the question the Commodity Futures Trading Commission is addressing now with the so-called self-certification process for new contracts. Exchanges have not faced this type of scrutiny over the launch of a new product in recent history until Bitcoin. Several new contract ideas have been squashed by legislation or regulation, including movie futures and onion futures way back when. But for the most part, exchanges are allowed to introduce new contracts as they…

Options Market Structure Issues; Timely VIX Hedging; No SPY Alternative for Traders Newsletter,Options

Observations & Insight Turn Yourself In, It’ll Be Easier: Bank Cooperation On Spoofing Charges Saves Millions Jim Kharouf – JLN Over the past several months, there has been a fair amount of talk about the Commodity Futures Trading Commission’s push on the so-called “self-reporting” initiative launched last September and aimed at taking it easier on firms that come forward with wrongdoing. Yesterday’s announced spoofing charges and fines include one of the first such self-reporting cases, with HSBC Securities settling for $1.6 million, Deutsche Bank for $30 million and UBS for $15 million. For the rest of the commentary, click HERE…

50 Cent Big Buyer of March VIX Calls; New Japanese Flex Options; Currency Volumes Newsletter,Options

Lead Stories ’50 Cent’ Is Buying Up Big on March VIX Calls Luke Kawa – Bloomberg Just as the rapper Curtis Jackson III captures attention for realizing he’s made millions on Bitcoin, the buyer of volatility options that shares his moniker is a window shopper in VIX options no longer. /goo.gl/K8sm8K ****SD: Said it before, I’ll say it again – Kawa gets the hip-hop puns. The more this options 50 Cent keeps putting on size, the harder it will be for me to find songs by the rapper to reference… I’ll probably have something to say about this on the…

Off-hour Earnings and Options; Swedish Bank Bosses Escape Options Blow-up Blame; HFT Tales Newsletter,Options

Lead Stories How Do Traders Respond to Off-Hour Earnings Announcements? Based on the research of Matthew R. Lyle, Christopher Rigsby, Andrew Stephen and Teri Lombardi Yohn – Kellogg School of Management at Northwestern University On Wall Street, “business hours” aren’t quite what they seem. The opening bell of the New York Stock Exchange rings at 9:30 a.m. Eastern, and the closing bell sounds at 4 in the afternoon—yet 95 percent of publicly traded companies announce their quarterly earnings outside of those official hours. jlne.ws/2qrxvSw ****SD: Basically, people are slow to react to earnings announcement the further they are from normal…

Traders snap up $80 Brent calls; EM volatility; Quad witching Newsletter,Options

Observations & Insight Carolyn Leonard – Women In Finance JohnLothianNews.com ” I had brokers with very large decks telling me to my face that they’ve never traded with a woman, they weren’t going to trade with me and that I shouldn’t take it personally… A lot of those same guys became awesome friends, but we had a real rocky start.” In this profile video from John Lothian News, Carolyn Leonard recalls her journey through the volatile world of trading at the Chicago Board Options Exchange beginning in the late ’70s. Leonard started trading after a divorce, with two young children…

Bitcoin Options Would Tame This Beast; High Hopes for Low Vol; Death of FX Volatility Newsletter,Options

Observations & Insight The Spread – Week of 12/4 – 12/8 JohnLothianNews.com A JLN debut! The Spread is a brief weekly recap of some of the notable activity in the options world. (It won’t always be this crypto heavy – we swear.) The following are stories referenced in this week’s episode of The Spread: WSJ – What Could Stir Up the VIX? Higher Inflation Bloomberg – Pound’s Acid Test on Brexit Is Yet to Come for Options Traders Highly Evolved Vol Blog – The Crowded Short Vol Trade JLN – Cboe Throws Launch Date Punch at Crosstown Rival CME Bloomberg…

Bitcoin certifications; Least Volatilite Year Ever?; Interactive Brokers customers file complaint Newsletter,Options

Observations & Insight Putting on My Broker Hat About Bitcoin John J. Lothian – JLN Everyone is asking about bitcoin. A journalist called and asked to interview me. A magazine called and asked me to write something. A brokerage firm chief risk manager called to ask me my opinion about bitcoin and bitcoin futures. Two weeks ago, a former employer I have not seen in 10 years called me out in Coindesk.com for my bitcoin qualms. At the dinner table my son Robby opened up about owning not just bitcoin, but bitcoin cash, ether and monero. This is a full-fledged…