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Tag Archives: VIX ETPs

Cboe Letter on Improving VIX Settlement Process; Matrix Executions’ High Touch Trading Desk for Options Newsletter,Options

Lead Stories Letter from Cboe CEO Ed Tilly and President Chris Concannon regarding VIX activity Cboe Over the past 25 years, the Cboe Volatility Index (VIX) has become the leading, global indicator of market volatility for the marketplace. It could only achieve this status through the support of our Trading Permit Holders and their customers, other market participants, our clients and investors. /goo.gl/Jr95w3 ****SD: More on this from a couple of sources below, but if you want a TL;DR – Cboe is working to make the VIX settlement better but does not acknowledge any manipulation. A longer TL;DR – Cboe…

Volatility, Inc.; Carnage, but no volatility crisis; Debt ceiling the real worry; VIX ETPs Newsletter,Options

Observations & Insight Follow up – Sounds like Seth Golden is…. OK? Spencer Doar – JLN Lots of news today, as one would expect. Yesterday’s blog on the short volatility trade was titled Vol-cano Erupts – How’s Seth Golden Doing? Funnily enough, Quartz was able to catch up with Golden – A day-trading millionaire says he isn’t fazed by his favorite strategy blowing up. Of course, with a guy that talks his book, you get lines from the story like this: “He lost money on Monday, but it wasn’t anything he hasn’t experienced before.” Uhhh, how has Golden experienced an…

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…

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…

Shorting the VIX Could Be Terrible; Financials Bulls Tested; LCH plans G10 NDFs, options Newsletter,Options

Lead Stories Why Shorting the VIX Could Be a Terrible Idea Jared Dillian – Equities.com The New York Times’ DealBook had a great piece of journalism a couple of days ago about short VIX carry monkeys. Well, that is what I call them. The article features a former Target logistics manager who has goosed his net worth up to $12 million by betting that the VIX will go down. He is in the process of raising $100 million for a VIX-smashing hedge fund. /goo.gl/ngccN3 ****SD: Dillian – “If this really does blow up, there is going to be some soul-searching…

Nasdaq Sues MIAX Parent Co.; VIX ETP Liquidation Scenario?; ETF volatility effects Newsletter,Options

Observations & Insight August 2017 Options Exchange Marketshare via OCC ++++++ OCC Cleared Contract Volume Up 19 Percent in August OCC OCC, the world’s largest equity derivatives clearing organization, announced today that total cleared contract volume in August was 395,912,022 contracts, up 19 percent from August 2016 volume of 331,447,840 contracts. Cleared futures reached a record volume with 14,923,607 contracts in August. OCC’s year-to-date average daily cleared contract volume is up four percent from 2016 with 17,068,192 contracts in 2017. jlne.ws/2xMsyDt ++++++ The Patent World Jim Kharouf – JLN We’re back in court today. On Friday, Nasdaq filed suit against…

VIX pioneer Dan Galai interview; Betting on risk is risky; FX Options Update Newsletter,Options

Lead Stories A pioneer of the VIX says the market is looking at volatility all wrong; VIX pioneer Dan Galai interview Joe Ciolli – Business Insider Stock market volatility — or the lack thereof — has been a hot-button topic on Wall Street of late. jlne.ws/2eM2u3f The VIX, VXX, SVXY, and volatility-linked ETFs: Betting on risk is risky Allison Schrager – Quartz No risk, no reward. That maxim has suffered recently, as the stock market has rewarded investors with steady returns amid historically low volatility. Traders looking to beat the market have fewer options in such placid conditions, so some…

More VIX ETP bets on turbulence; Bear market signals multiplying; Digital currencies worth it? Newsletter,Options

Lead Stories Investors raise bets that market turbulence will ease; Two popular exchange traded funds nearly double in size this month Robin Wigglesworth and Joe Rennison in New York – Financial Times Investors have ratcheted up bets that the stock market’s recent turbulence will ease despite the biggest monthly losses in almost a year, doubling the size of two popular exchange traded funds this month. There has been a proliferation of exchange-traded products that are tied to the value of the Vix, Wall Street’s so-called “Fear Gauge”. The Vix reflects the turbulence of the S&P 500 implied by option prices,…

JLN Options: All about the crowd in VIX ETPs Newsletter,Options

Observations & Insight Hurricane to Cost Tens of Billions, but a Quick Recovery Is Expected Conor Dougherty and Nelson D. Schwartz – NY Times The brutal storm pummeling the Houston area is likely to rank as one of the nation’s costliest natural disasters, with tens of billions in lost economic activity and property damage across a region crucial to the energy, chemical and shipping industries. But economists say the region is likely to recover quickly and may even experience a bump in growth from rebuilding. nyti.ms/2xKa4Ct ++++++ Deluged Texas Braces for More Rain, and Years of Recovery Julie Turkewitz, Richard…