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Tag Archives: volatility

Don’t Believe Options Traders; Europe’s Volatility Curve Is Getting Kinky Ahead of French Vote; Trump’s dollar paradox promises roller-coaster ride for currencies Newsletter,Options

Observations & Insight January Marketshare via OCC ++++++ On another note, check out what the VIX momentarily did after the Fed yesterday: Here’s a closer breakdown of the action from the CBOE: Time Index Quote 12:59:56 p.m. CT   11.50 1:00:11 p.m. CT      9.97 1:00:26 p.m. CT     11.53 ++++++ CBOE VIX index briefly broke below 10 after Federal Reserve decision Fred Imbert – CNBC Something strange happened to Wall Street’s so-called fear index on Wednesday. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, broke below 10 for less than a minute Wednesday at…

Wall Street’s ‘fear index’ jumps the most in about 5 months as Trump spooks market; VIX shorts hit new record; Trump Aides’ Confusion Mimicked by Bond, Stock Options Gauges Newsletter,Options

Lead Stories Wall Street’s ‘fear index’ jumps the most in about 5 months as Trump spooks market Mark DeCambre – MarketWatch A popular measure of Wall Street fear jumped to its highest level in more than four months on Monday, as the equity market retreated amid concern over President Donald Trump’s controversial executive order aimed at tightening U.S. immigration rules. on.mktw.net/2kH1vTh ***JB: Further below is a story about the VIX at its lowest in 10 years, published 4 hours ago. My how fast things change! VIX shorts hit new record Helen Bartholomew – Reuters Net short positioning in the CBOE’s…

S&P 500 Options Showing Little Fear Over Trump Policy…For Now; Investors Prepare for a Wild Stock-Market Ride; Liquidation risk hangs over oil and gas price Newsletter,Options

Lead Stories S&P 500 Options Showing Little Fear Over Trump Policy…For Now Tanvir Sandhu – Bloomberg S&P 500 options are showing little anxiety over Donald Trump’s policies over the next few weeks, even as rates options capture concerns, according to Bloomberg strategist Tanvir Sandhu. The smoothness of S&P 500 Index’s volatility term structure indicates complacency in factoring in policy shifts by the government, reminiscent of a similar formation three weeks before the U.S. election on Nov. 8 when opinion polls overwhelmingly predicted a Hillary Clinton win. bloom.bg/2keeFaj ****SD: “Never say never, because limits, like fears, are often just an illusion.”…

Bitcoin Options Firm LedgerX Crosses Key Launch Hurdle; The Volatility Bubbling Just Below The Surface; Popularity of WTI Options Has Risen Alongside Volatility in Crude Oil Prices Newsletter,Options

Observations & Insight More Turnover At The Top: Garry Jones Out At LME Jim Kharouf, JLN Garry Jones is out as CEO of the London Metal Exchange, perhaps marking a new path for the metals bourse. From a personal perspective, Jones is among the CEO set with deep knowledge of the derivatives and exchange space, with stints at NYSE LIFFE/NYSE Euronext, ICAP and BrokerTec. His insight into the derivatives space was usually thoughtful and on target. He inherited an exchange that was due for major changes and he implemented them. Switching the LME from its prior member-owned culture to one…

Tabb Options Liquidity Matrix; Cliff Asness on equity volatility; The tasty nation adds an entree, tastyworks Newsletter,Options

Lead Stories US Options Volume Falls in December TABB Forum US listed options volume declined in December as traders pulled back after an active November propelled by the surprise election of Donald Trump. Volume totaled 327.5 million contracts in December 2016, a 14.5% decline from November’s 383.2 million contracts. jlne.ws/15F92GM Cliff Asness – 2016 Beyond Equities: Still Boring ValueWalk Writing my post titled “2016 Was Not a Particularly Volatile Year” on realized risk/variability turned out to be even more fun than usual as I got a lot of great comments on it. Of course, some didn’t buy it. Some said…

New China options to pave way for open commodities trading; Amsterdamtrader stops; “Open outcry” is in retreat but futures and options trading-volumes surge Newsletter,Options

Lead Stories New China options to pave way for open commodities trading Lucy Hornby – Financial Times As China prepares to introduce its first options contracts for commodities trading, the head of one of the country’s leading bourses for raw materials has shrugged off fears that the move will add to the extreme volatility in commodities seen in 2016. “We [in China] are behind international markets because we have too few tools, too few products,” says Li Zhengqiang, chairman of the Dalian Commodity Exchange, adding that introducing more products and new instruments like options will help hedge risk, not add…

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…

An Obscure Oil Bet Takes Off; The VIX Is at a Two-Year Low, But Volatility Trading Is Surging; A volatile calm – the paradox of 2016 financial markets Newsletter,Options

Observations & Insight JLN Options Publishing Schedule In light of the upcoming holiday, JLN Options will not be publishing Friday, December 23, and Monday, December 26. Have a safe and joyous weekend everyone! Best wishes, The JLN Team Lead Stories An Obscure Oil Bet Takes Off Gunjan Banerji and Alison Sider – WSJ Traders often turn to plain-vanilla options on oil futures to wager on crude prices, which recently have been whipsawed by oil producers’ efforts to curtail global output. But a less-popular approach is attracting attention. These options allow traders to bet on the price gap itself. On Wednesday,…

The Dispersion Trade; Kolanovic Sees Higher Risk Potential In 2017, Volatility Not Properly Priced; A Trader’s Guide to Donuts, Wheat and Algorithms … Newsletter,Options

Observations & Insight JLN Options To Have Guest Editor: The Schwartz Will Be With Us As much as I’m sure you all love the JLN team’s snark and irreverence, sometimes we shake things up. As such, next week we will have a guest editor: Trade Alert’s Henry Schwartz. Schwartz will provide his insight and commentary for JLN Options. Enjoy the different spin next week! ++++ Jim Kharouf Named New CEO of John J. Lothian & Company, Inc.; John Lothian Moves to Executive Chairman; Kharouf Gets Equity Stake In Firm James Kharouf has been named CEO of John J. Lothian &…