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Tag Archives: volatility

Low Bond Vol Creates Trove of Cheap Bets; Wells Fargo/LJM Update JLN Options Newsletter,Newsletter,Options

Lead Stories Low Bond Volatility Creates Trove of Cheap Bets; Whatever happened to rising interest rates sparking market turbulence? Brian Chappatta – BloombergQuint The Federal Reserve is raising interest rates, and that’s going to increase volatility. Or at least that was the nearly unanimous view of investors worldwide heading into 2018. But aside from “volmageddon” in early February, that simply hasn’t been the case. Instead, the stock market’s fear index (formally the Chicago Board Options Exchange Volatility Index) is firmly below its five-year average. Interest rates are even quieter, with Bank of America Corp.’s MOVE index, which tracks price swings…

Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders Newsletter,Options

Observations & Insight Monster’ Hurricane Florence to pummel U.S. Southeast for days Ernest Scheyder – Reuters Hurricane Florence, on track to become the first Category 4 storm to make a direct hit on North Carolina in six decades, howled closer to shore on Tuesday, threatening to unleash deadly pounding surf, days of torrential rain and severe flooding. /goo.gl/J6r6DL Lead Stories Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders Logan Kane – Seeking Alpha Robinhood is marketed as a commission-free stock trading product but makes a surprising percentage of their revenue directly from high-frequency trading firms. It…

Bad bets offer a cautionary tale to investors; Second-guessing the volatility of markets can be costly Newsletter,Options

Observations & Insight The Spread – The Colo Down-low – 9/7 JohnLothianNews.com “The Spread” hasn’t covered Aurora, Ill. during its time on the web. We tick that box in this week’s recap. Watch the video and see the stories referenced here » Lead Stories Bad bets offer a cautionary tale to investors; Second-guessing the volatility of markets can be costly Brendan Geeley – FT (SUBSCRIPTION) Over several days in early February of this year, two retail exchange traded products lost more than 80 per cent of their value. Close to $3bn was wiped out. One product, which traded as XIV,…

OCC Volumes; Flash Crashes; Position Limits JLN Options Newsletter,Newsletter,Options

Observations & Insight Remember, Remember the 15th of September Spencer Doar – JLN It’s that time of year again – the annual financial crisis reflection period. This year markets have a nice, round anniversary number to glom onto. I believe 10-year anniversaries traditionally merit gifts of tin or aluminum. I’m unsure who would be best to send those trinkets to… So there are plenty of stories floating around with plenty more to come. Here is what I expect to be one of many article lists covering issues, lessons and prognostications related to the global financial crisis. (I do hope the…

Another Big Personnel Move; BaFin supports UK in Brexit derivatives spat JLN Options Newsletter,Newsletter,Options

Lead Stories Yet another big-name equity derivatives MD changes seats Beecher Tuttle – eFinancialCareers J.P. Morgan has lost a big name within its global equity derivatives team. Jason Cuttler, who spent the last two years at JPM after a lengthy career at Goldman Sachs, has left the bank and is currently on gardening leave, suggesting he’s been poached by another firm. Cuttler didn’t respond to a request for comment on where he’s heading. /goo.gl/AsyZ8k ****SD: There have been lots and lots of moves this year. Germany aligns with the UK against Brussels on GBP100 trillion derivatives danger Ambrose Evans-Pritchard and…

OCC risk management plans; One way vol bets a “fool’s errand”; Melt-up concerns JLN Options Newsletter,Newsletter,Options

Lead Stories OCC Enhances Resilience with Regulatory Approval of Recovery and Wind Down and Associated Recovery Tools John Davidson, President and COO, OCC On August 23, OCC, the world’s largest equity derivatives clearing organization, received approval from the U.S. Securities and Exchange Commission of the company’s proposed recovery tools and proposed recovery and orderly wind-down (RWD) plan. These are critical risk management tools designed to enable OCC to enhance its resiliency as a Systemically Important Financial Market Utility (SIFMU) and successfully manage extreme market disruptions in future financial crises /goo.gl/CYjzcL One-Way Volatility Bets Seen as ‘Fool’s Errand’ by 6,000% Winner…

The Big Hedge-Fund Strategy That Isn’t Working Newsletter,Options

Observations & Insight The Spread – Thin Crust Pizza – 8/24 JohnLothianNews.com Most of the time, we go for a smattering of everything on “The Spread.” But this week there was a story that got a lot of clicks and stirred up the pot, so we thought we’d just address the issues that arose from that. Watch the video and see the stories referenced here » ++++ Monday Mutterings Spencer Doar – JLN There was a breakthrough in trade negotiations with Mexico today (link to Fox Business). The two sides agreed to a new pact called the United States Mexico…

VIX Changes; OCC Plans; Eurodollar Whale JLN Options Newsletter,Newsletter,Options

Observations & Insight VIX (and Other Friday Stuff) Spencer Doar – JLN The Cboe quietly dropped a proposal to amend its interpretation of rule 6.2, which you might know better as “stuff pertaining to VIX settlement.” The proposed rule change expands/clarifies the exchange’s interpretation of “strategy orders” and “non-strategy orders” to better determine whether or not someone is gaming the settlement calculation. Fed Chair Powell’s comments from Jackson Hole are in. He stuck by his guns, saying that steady rate hikes are the best way to keep the recovery going. (I’m mildly surprised there has not been a presidential tweet…

Options Battle Brews; Volatility Trades Are Reborn JLN Options Newsletter,Newsletter,Options

Observations & Insight EU expects delay in Brexit deal beyond October target Gabriela Baczynska – Reuters European Union leaders are likely to have to hold an emergency summit in November to consider any Brexit agreement struck with Britain, missing an informal deadline the previous month, diplomats in Brussels said. /reut.rs/2w6N4zd ****SD: Who in their right mind thought this was going to go according to schedule? The Financial Times has EU vows to get tough on UK’s market access after Brexit. From that story – “Dombrovskis said Brussels was not offering any kind of ‘super equivalence’ to the UK, and that…