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Tag Archives: VIX

Small Cap Splash: Russell’s Pat Fay Talks About CBOE’s Latest Volatility Contract Interview,Options,Video

Pat Fay

The CBOE Volatility Index futures, or VIX, has been THE most successful futures contract in recent years. With the VIX posting record volumes this year, the exchange and Russell Indexes say now is the time to launch the Russell 2000 Volatility Index futures or RVX. John Lothian News sat down with Russell Investment’s Pat Fay to talk about RVX and its potential, especially versus other indexes like VIX and the European volatility index VSTOXX. Fay says the appetite for a small cap stock volatility futures is strong, especially among money managers looking to incorporate volatility hedges into their portfolios. “Clients…

John Lothian Newsletter: CBOE to take time extending VIX options trading hours; Asian exchanges tap derivatives demand; Borsa Istanbul CEO Says Nasdaq OMX May Buy Exchange Stake John Lothian Newsletter,Newsletter

First Read Proposed Rule Limits Size of Commodities Traders’ Positions ALEXANDRA STEVENSON – NYTimes.com In 1979, Nelson Bunker Hunt and William Hunt famously bought up as much silver as they could in the commodities market. By the time they were done, the brothers had acquired more than a third of the world’s supply of silver, sending the price of the precious metal soaring. Citing the Hunt brothers’ attempt to corner the market more than three decades ago, the Commodity Futures Trading Commission on Tuesday voted 3 to 1 to limit the size of any trader’s footprint in the commodities market….

JLN Options: ICE postpones date of purchase of NYSE, Options Market Hit With Data Disruptions as VIX Lurches Newsletter,Options

Observations & Insight Another Day, Another GlitchJohn Lothian News Actually, there were two unrelated glitches in the options market today, and one yesterday. First, ISE had a technical issue in a software configuration interrupted its price feed into OPRA this morning. Around this same time, the CBOE’s benchmark volatility index experienced erratic price gyrations on three separate occasions. Yesterday’s data feed disruptions at NASDAQ, it turns out, resulted from a “human error” related to an operational function. Coincidentally, yesterday morning WSJ’s Paul Vigna commented on how common such technical failures are, and how little impact they have on the markets….

Getting Shorter: CBOE’s Ed Tilly Introduces Short-term VIX and Industry Taxes Interview,Options,Video

Ed Tilly

It has been half a year since Ed Tilly took over as CEO of the CBOE from Bill Brodsky, who moved to the newly created role of executive chairman. WATCH: Taking the Reins: CBOE’s Ed Tilly Makes The Transition to CEO With six months under his belt, John Lothian News Publisher John Lothian sat down with him to talk about his new job, new initiatives from the CBOE and the challenges facing the industry. In Part 2 of this interview, Tilly talks about the CBOE extending the VIX trading hours to access trading from European traders and how he expects…

JLN Options: Look Out Vix, Treasury Volatility Falls on Speculation Fed to Maintain Policy, Implied Volatility and the Debt Ceiling Crisis Newsletter,Options

Lead Stories Look Out Vix, Here Comes a New Way to Measure Volatility Yahoo! Finance Scott Nations, founder and CIO of NationsShares has a new product coming that he says is a better tool for tracking volatility and the way people on Wall Street really think of it. VolDex is an exchange he’s created that strips away the more obscure derivatives and measure the meat and potatoes options linked to the S&P 500 itself using the SPDR ETF. http://jlne.ws/1akON4q***DA: I am dying to know how measuring the volatility of meat and potatoes will help me gauge the market. Treasury Volatility…

JLN Options: The Wilting Flower of VIX Newsletter,Options

Lead Stories The Wilting Flower of VIX Andrew Giovinazzi – The Options Insider Wither the VIX The market for volatility seems to be giving up its final breaths today.  If underwhelming earnings in GOOG and MSFT cannot push things lower I am running out of things to think of. http://jlne.ws/1bGyUW2 Everyone’s Talking About This Huge Stampede Of Cash Rushing Into The Stock Market Joe Weisenthal – Business Insider As the market sails to new highs, the floodgates have broken open. Money is pouring like crazy into stocks, which is of course classic investor psychology. Nobody buys low. People like to…

JLN Options: The Two Problems With the VXX Newsletter,Options

Lead Stories The Two Problems With the VXX Adam Warner – Schaeffer’s Investment Research The iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX) hit new lows yesterday! In other breaking news, it was hot and it was a Thursday and… we really need the MLB All-Star break to end, as this is clearly the worst sports week of the year. http://jlne.ws/1dKqh9x FX could move to financial settlement under clearing pressure – GFXD’s Lam Joel Clark – Risk Magazine More foreign exchange derivatives could move towards financial rather than physical settlement in the coming years if the market fails to find…

JLN Options: What Was Behind Yesterday’s Crazy S&P 500 Options Volume? Newsletter,Options

Lead Stories What Was Behind Yesterday’s Crazy S&P 500 Options Volume?   Adam Warner – Schaeffer’s Investment Research Strange volume in the S&P 500 Index (SPX) August puts yesterday, yowza. With the index in the 1,680 range, 29,000 of the August 1300 puts traded, 39,632 of the August 1250 puts traded, and 17,933 of the August 1200 puts traded. In fact, every put in the August series down to 1115 traded on the open. Even the August 500 puts traded! http://jlne.ws/17oraCY **Not sure where it all ended today but 2.5 hours into today’s trading 10 million options had been traded putting…

JLN Options: Investors Show Confidence That New Stock Market Calm Will Linger Newsletter,Options

Lead Stories Investors Show Confidence That New Stock Market Calm Will Linger Kaitlyn Kiernan – The Wall Street Journal With the stock market resuming its rally after a bout of indigestion caused by worries about the outlook for Federal Reserve policy, options investors appear to be thinking the calm will last. As stocks have pushed back into record territory and the Chicago Board Options Exchange’s Volatility Index has declined over the last three weeks, far fewer investors are placing bets that the quiet will be short-lived and the VIX will spike higher. http://jlne.ws/1dF8kJD **At last glance the VIX was down…