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Tag Archives: volatility

JLN Options: Last-Second Options Bet on Saks Raises Questions Newsletter,Options

Lead Stories Last-Second Options Bet on Saks Raises Questions Kaitlyn Kiernan, The Wall Street JournalOptions traders are raising questions about the timing of a set of last-minute trades in Saks Inc. Tuesday that stand to bring in huge profits following news the company may be exploring a sale. http://jlne.ws/184Wha7 IntercontinentalExchange CEO says lack of cross-border derivatives coordination ‘damaging’Megan Hickey, Medill News Service (via MarketWatch)The failure to harmonize the cross-border application of derivative rules “will be damaging,” according to IntercontinentalExchange Chairman and CEO Jeffrey Sprecher, who testified Tuesday on Capitol Hill at a hearing on the future of the Commodity Futures Trading…

JLN Options: Big Hedge Funds Suddenly Bullish Newsletter,Options

Lead Stories Big Hedge Funds Suddenly Bullish  Steven M. Sears, Barron’sA tectonic shift in the options market suggests that big money is now chasing the rally higher. Now bears get a discount.http://jlne.ws/12K47kL Equity options rebound in AprilFOWUS market growth has driven the most active April in US equity options history, indicating a possible upturn after a lack-lustre first quarter’s trading writes Jonathan Watkins.http://jlne.ws/14O5SNZ The VIX: It Could Get Ugly Soon  Adam Warner, Schaeffer’s Investment ResearchNow, there’s no law that says VIX has to move anywhere. Way back before anyone paid attention to VIX — like in the 90s — volatility didn’t fluctuate…

JLN Options: NYSE Voids Penny Trades in Anadarko From Last Minute of Trading Newsletter,Options

Lead Stories NYSE Voids Penny Trades in Anadarko From Last Minute of TradingWhitney Kisling & Nikolaj Gammeltoft, BloombergThe New York Stock Exchange broke trades in Anadarko Petroleum Corp. (APC) after the shares briefly plunged 99 percent in the final minute of today’s session.http://jlne.ws/12oRWbi Why QE, low interest rates and volatility are an explosive mix for the marketsSimone Foxman, QuartzCritics of quantitative easing (QE)—whereby central banks push down interest rates and buy up safe assets to stimulate flagging economies—have long worried about the possible unintended consequences. The point of QE is to push down the yields on safe assets like government…

JLN Options: Regulators Target Exchanges As They Ready Record Fine Newsletter,Options

Lead Stories Regulators Target Exchanges As They Ready Record Fine  Jenny Strasburg, Jean Eaglesham and Scott Patterson, The Wall Street JournalFinancial regulators are taking a harder line on exchanges amid concerns over their ability to police the markets they operate, as the SEC prepares to hit one with a record penalty.http://jlne.ws/10Dgqv2 The Volatility Trade’s Not Dead Yet  InvestorPlaceWith the CBOE Volatility Index and other volatility measures sagging to relative lows, one might think that the volatility trade is dead.  Not the case, according to our options volume tracking filters which have identified some interesting options activity on the fear gauge, as the…

JLN Options: Nasdaq’s PHLX Options Market Has ‘Issues,’ Halts Some Trading Newsletter,Options

Lead Stories Nasdaq’s PHLX Options Market Has ‘Issues,’ Halts Some TradingJacob Bunge, NASDAQNasdaq OMX Group Inc. ( NDAQ ) on Thursday halted trading in some stock-options contracts on its largest options exchange due to “system issues,” according to notices sent to traders.http://jlne.ws/12ykG3b NYSE Looks to Cull List of Penny NamesPeter Chapman, Traders MagazineIn a move intended to reduce quote traffic and the exchange operator’s administrative burden, NYSE Euronext is proposing to cut significantly the number of options subject to penny trading and to end the so-called “Penny Pilot” program.http://jlne.ws/12ylOUm 5 Theories Behind the VIX Stagnation  Adam Warner, Schaeffer’s Investment ResearchThe market…

JLN Options: Big Sony options action before Loeb stake raises eyebrows Newsletter,Options

Lead Stories Big Sony options action before Loeb stake raises eyebrowsDoris Frankel, Reuters (via Chicago Tribune)A surge in option market bets on Sony Corp just before a large hedge fund investor announced a big stake and called for a major restructuring of the company has raised concerns that some traders may have had advance word of the news.http://jlne.ws/10PDuwh VIX Rises on Tuesday Despite New S&P 500 Record HighWall Street Sector SelectorVIX managed to increase on a day when Small Business Confidence Index beat expectations and the S&P 500 set new record intraday and closing highs.http://jlne.ws/10PC84B VIX Moves With Stocks as…

JLN Options: Jumbo SPY Options Start Slow Amid Industry Criticism Newsletter,Options

Lead Stories Jumbo SPY Options Start Slow Amid Industry Criticism Kaitlyn Kiernan, The Wall Street JournalAn effort to create jumbo-sized options linked to larger blocks of shares for the popular SPRD S&P 500 exchange traded fund is off to a rough start.The new contracts, launched by BOX Options Exchange LLC, represent an attempt to break Chicago Board Options Exchange’s lock on heavily-traded–and lucrative–options contracts tied to the Standard & Poor 500-stock index.http://jlne.ws/15Kl0QV Goldman may create own Bloomberg-like techMark DeCambre and Kaja Whitehouse, New York PostGoldman Sachs is mulling reducing its reliance on the ubiquitous Bloomberg LP terminals, The Post has learned….

JLN Options: Supreme Court Denies ISE Appeal On Index Options Dispute Newsletter,Options

Lead Stories Supreme Court Denies ISE Appeal On Index Options DisputeJacob Bunge and Brent Kendall, Dow Jones Business News (via NASDAQ)The U.S. Supreme Court has decided not to take up a long-running legal battle over an exchange’s right to trade lucrative options contracts linked to stock indexes.http://jlne.ws/16v3Y90**CBOE press release is below. -JB Low Volatility Is Depressing Options SellersTyler Craig, InvestorPlaceBarring the occasional spike to the high teens, the CBOE Volatility Index (CBOE:VIX) appears to have found a new home in the 12-14 zone this year.While the low-volatility regime settling over Wall Street might be applauded by bull market lovers, though,…

JLN Options: ISE Cancels Jumbo S&P 500 Options Debut on Liquidity Concern Newsletter,Options

Lead Stories ISE Cancels Jumbo S&P 500 Options Debut on Liquidity Concern Nikolaj Gammeltoft, BloombergBusinessweekInternational Securities Exchange, the second-biggest U.S. options market, withdrew plans to trade larger-size options on the SPDR S&P 500 ETF Trust (SPY) amid concerns the contracts may threaten market liquidity.http://jlne.ws/14aVjnJ Court Won’t Block Vote on NYSE and ICE DealPeg Brickley, Dow Jones Newswires (via Fox News)A Delaware corporate-law judge on Friday refused to block the merger of NYSE Euronext (NYX) and Intercontinental Exchange Inc. (ICE), dumping a challenge by shareholders who argued the deal was flawed.http://jlne.ws/14aZ1xT The Most Valuable Formula Ever CreatedAlex Planes, The Motley FoolOn…