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Go Ahead—Gamble on a Calm Market. What Could Go Wrong? Newsletter,Options

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Lead Stories Go Ahead—Gamble on a Calm Market. What Could Go Wrong? Randall W. Forsyth – Barron’s Party like it’s 2017? Speculators are once again betting the stock market’s return to low volatility will persist despite the array of uncertainties it faces. Unlike last year, however, when amateurs piled into complex and risky exchange-traded funds that moved inversely to the VIX—the Cboe Volatility Index on options on the S&P 500—it’s professionals who have ramped up their short positions in VIX futures and options contracts his time. /jlne.ws/2HualOh ****JB: A fool and his money are soon parted. Betting Against Volatility Can…

Investors clinging to maligned trade, setting up for more carnage: MS Newsletter,Options

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Lead Stories Investors clinging to maligned trade, setting up for more carnage: MS Joe Ciolli – Business Insider It has been said that repeating the same mistake and expecting a different result is a psychological fallacy. If so, one group of investors missed the memo, because that group is once again heading down a dark path that led it astray mere months ago. We’re referring to volatility short sellers, who were caught off-guard by a market shock in early February that left them scrambling to cover positions, putting even more pressure on existing holders. That, in turn, wiped out billions…

Amazon and Google’s Cloud for Big Banks; Bold goals from Korean meeting John Lothian Newsletter,Newsletter

First Read Lessons From the “Not Guilty” Verdict in This Week’s Criminal Spoofing Trial Renato Mariotti Mariotti is a former federal prosecutor who spent almost 10 years investigating and prosecuting hundreds of cases in a wide variety of areas and is now a defense attorney. He is a former candidate for the Democratic nomination for Attorney General in Illinois. Wednesday’s stunning “not guilty” verdict in United States v. Andre Flotron, only the second spoofing case ever taken to trial, is a reminder that it is extremely difficult for prosecutors to prove a defendant’s intent beyond a reasonable doubt in the…

Options Market Says Buy the Dip; Issues With Volatility Short-Selling Guru Newsletter,Options

Lead Stories Options Market to Investors: Buy the Dip; Options traders aren’t pricing in a correction during September and October, even as worries abound. Steve Sears – Barron’s The options market is sending a message to stock investors: Keep calm and buy the dip. Despite the recent turbulence in the market, Standard & Poor’s 500 index options, which are used to hedge stock portfolios, are priced as if investors have little to worry about over the next two months. This stands in sharp contrast to the recent eruption of market commentary that warns stocks could severely tumble for any number…

John Lothian Newsletter: High-Speed Trades Will Face CFTC Policies to Curb Disruption; Future of London gold market up for grabs; NYSE Pleads for Rules to Make Hedge Funds Reveal Short Positions; John Lothian Newsletter,Newsletter

First Read ALTSO Rocktoberfest Chicago, Tonight, City Winery Doug Ashburn – JLN After watching an epic baseball season come to an end a few games too soon, Chicago needs a distraction. As there will be no Game 5 between the Cubs and Mets, you may be asking, “what should I do tonight?” ALTSO to the rescue. Come on out to City Winery tonight and support A Leg to Stand On, a charity that provides free prosthetic limbs, corrective surgery, orthotic devices and rehabilitative care to children who have lost limbs in traumatic accidents or suffer from congenital limb disabilities. Tonight,…

John Lothian Newsletter: Dealmaking saga over GFI nears conclusion; China Short Sellers Shun Stock Link With Zero Trade on Debut; SEC plans to level playing field for newer ETF firms John Lothian Newsletter,Newsletter

First Read NY Financial Writers Elect Burne, Move ‘Follies’ By Jack O’Dwyer Katy Burne, a U.K. J grad who reports for the Wall Street Journal, is 2015 president of the New York Financial Writers Assn. which, after many years, is switching its “Follies” show from the Marriott Marquis to the Hilton. Burne, who has covered bonds and derivatives for five years for the WSJ and Dow Jones newswires, has been in the cast of the “Financial Follies” since 2010. Previously managing editor of Derivatives Week, she has a post-grad diploma in magazine journalism from Harlow Journalism Center, U.K., and a…

JLN Options: Former CBOE head Alger B. ‘Duke’ Chapman dies at 81 Newsletter,Options

Post Market Volume and Volatility Movers(click for larger image) Chart provided by Livevol (Tuesday, Feb 19, 2013 – 4:25p). This report shows stocks that have the highest stock volume, and greatest IV30 change for the day. Individual issues must have a minimum trade price greater than $5.00. The minimum average option volume must be at least 200. The scan excludes 2x,3x ETF products from the results. Lead Stories Former CBOE head Alger B. ‘Duke’ Chapman dies at 81Lynne Marek. Crain’s Chicago BusinessAlger B. “Duke” Chapman, who was chairman and CEO of the Chicago Board Options Exchange from 1986 to 1997,…

The Chicago Way Commentary,Options,Regulation

John Lothian

In Chicago we don’t believe in short selling bans.  If you want to go short, you just walk into the trading pit and put your hands up in the air facing out and yell “SELL 4 at 6,” or something like that.  If you want to sell some futures electronically, you just hit sell on your screen, or lean on the keyboard in the right way.  Or is it the wrong way? We believe short selling is an important part of the market price discovery process.  As I repeat all too often, futures are abut two things: price discovery and risk transfer. …