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Tag Archives: VIX futures

Is the VIX Being Gamed?; Bullish Options Positioning; Traders Love Crypto Stock Moves Newsletter,Options

Lead Stories Is the VIX Being Gamed? A Sudden Swoon Has Traders Talking Again Nikolaj Gammeltoft and Cecile Vannucci – Bloomberg It made for quite a chart. On the morning of Dec. 20, just as billions of dollars of futures tied to the Cboe Volatility Index were set to expire, the index plunged. The result was a settlement price, a weekly value critical to holders of some the most heavily traded derivatives in the country, that was 13 percent below the prior day’s close. A nice break, if you were short. jlne.ws/2FmYv96 ****SD: I think one upside to this whole…

Volatility Is World’s Undervalued Asset; Acting Like Risk Doesn’t Exist Newsletter,Options

Lead Stories Volatility May Be the World’s Only Undervalued Asset Class Doug Kass – RealClearMarkets I have argued that risk is underpriced because in large measure of the structural changes in the markets and participants positioning. Risk is an ever-present condition that cannot be eliminated, though it can be shifted through time and redistributed in form. bit.ly/2yNJED8 Sometimes You Beat the Bear. Lately, the Bear Beats You. Stephen Gandel – Bloomberg Investors have spent at least $2.6 billion this year on funds that are supposed to protect their portfolios in a market crash. Instead, those funds, rather than insuring their…

Big FX bets bunched around Jackson Hole meeting; Options trader gets 1.5 years in prison; VIX Options Volume Record Newsletter,Options

Observations & Insight No, Not the VIX – the VSTOXX Sarah Rudolph – JLN Even your dog has heard of the VIX, the Chicago Board Options Exchange‘s benchmark volatility index, but the VSTOXX, the benchmark for volatility in European stocks, is less of a household name in the U.S. Eurex has been trying to change that by adding more and more functionality to their VSTOXX products, starting out with spot prices and futures contracts on the index and then more recently moving into options on futures and ETNs. Yesterday, Eurex and Rival teamed up for a meetup in Chicago at…

Options Traders Aren’t Sweating the Debt Ceiling; China Inc.’s Next Debt Headache Is $580 Billion of Put Options Coming Due; Banks relying on volatility resurgence to boost trading profits Newsletter,Options

Observations & Insight OCC Cleared Contract Volume Up Two Percent in July OCC OCC, the world’s largest equity derivatives clearing organization, announced today that cleared contract volume in July was 324,718,888 contracts, up two percent from the July 2016 volume of 317,045,566 contracts. OCC’s year-to-date average daily cleared contract volume is also up two percent with 17,045,133 contracts in 2017. jlne.ws/2wieijX Lead Stories Options Traders Aren’t Sweating the Debt Ceiling Chris Dieterich – WSJ The bond market recently appeared jittery about a protracted fight on Capitol Hill over the debt ceiling. Options? Not so much. A reading of the options…

50 Cent Isn’t the Only One Seeking Big Protection in VIX Options; Markets Have Nothing Left to Fear But Fearlessness Itself; Factors make multi-asset shift Newsletter,Options

Lead Stories 50 Cent Isn’t the Only One Seeking Big Protection in VIX Options Luke Kawa – Bloomberg ’50 Cent’ has company in his quest to protect from market turmoil. Even as the CBOE Volatility Index sits at historically low levels below 10, an institutional investor on Monday bought 100,000 lots of July VIX call options with a strike price of 25. He paid 12 cents a pop. The same person simultaneously sold an equal amount of calls with a strike price of 30 for 7 cents each. The same day, the trader nicknamed 50 cent loaded up on protection…

This U.S. Treasuries ‘Breakout Play’ Has Rarely Been So Cheap; VIX most bearish hedge fund positioning on record; Soc Gen combines electronic and high-touch trading teams Newsletter,Options

Lead Stories This U.S. Treasuries ‘Breakout Play’ Has Rarely Been So Cheap Tanvir Sandhu – Bloomberg Rally in stocks and bonds calls for a more cautious approach; Risks of market correction are rising but yet to be irrational The low cost to hedge a break-out from the range in long-term rates may appeal to investors seeking hedges for a more measured portfolio stance. Strangles on the iShares 20+ Year Treasury Bond ETF, which seeks to track the returns of an index of U.S. Treasury bonds with maturities greater than 20 years, are near all-time lows. /bloom.bg/2tb73Mo VIX most bearish hedge…

VIX Surge Is Unwelcome Lesson in Duplicity of Volatility Wagers; The Volatility Buyer Known as ’50 Cent’ Just Had a Huge Payday; Don’t Fear The Fear Gauge Newsletter,Options

Observations & Insight CBOE Celebrates Exit of Long-tenured Employees at Chicago Gala By John J. Lothian The CBOE held a gala event at the Aon Grand Ballroom at Navy Pier in Chicago last night to celebrate the long and successful careers of several key employees whose tenure dated back to the nascent years of the exchange. Among those honored were Ed Provost, Philip Slocum, Thomas Knorring, Gerald O’Connell, Thomas Brady, Debra Peters and former chairman and CEO Bill Brodsky. Over 200 years of experience in the world’s first and leading options exchange will retire or move on with the CBOE…

Uncovering the Secret History of Wall Street’s Largest Oil Trade; Cowen Group to Buy Brokerage Firm Convergex for $116 Million; Hedge funds square up most of their former record bullish position in oil Newsletter,Options

Observations & Insight March Marketshare via OCC ++++++ No Garfield Needed – A Good Case of the Mondays at CME Spencer Doar – JLN Yesterday was the first trading day for CME’s Monday weekly options on the S&P 500 and E-Mini S&P. The launch comes after the success of the Wednesday weeklies that were launched in September 2016 — now some 50-60k of the Wednesday contracts are traded daily. The CME debuted Mondays this month ahead of the French elections after seeing how much trading activity other political events of 2016 caused during off-hours. “What’s interesting is that even though…

2016 – The Volatility Year That Wasn’t; The Zig and Zag of 2016’s Volatilities; Kate Spade Entangled in Insider Trading Allegations Following Sale Reports Newsletter,Options

Observations & Insight The year is dead. Long live the year! Spencer Doar – JLN Everybody feeling refreshed? Ready to continue barreling headlong into the unknown? Hope so – nothing will wait up for you. Speaking of not waiting up, our JLN Options newsletter was on the shelf for the holidays and despite it being a slow period, there was still news pertaining to our markets. As such, there are a some stories sprinkled in today’s newsletter from the tail end of 2016. Just before we signed off for 2016, we had Henry Schwartz of Trade Alert as a guest…