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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…

JLN Options: Fear Gauge Sees Stock Volatility Abating Even Further Newsletter,Options

Lead Stories Fear Gauge Sees Stock Volatility Abating Even Further  Kaitlyn Kiernan, The Wall Street JournalThe spread between reality and expectations is widening.Lately, actual volatility in the Standard & Poor’s 500-stock index has been higher than the volatility implied by readings on the Chicago Board Options Exchange’s Volatility Index. The gap between the two metrics is the largest positive divergence between the two readings since December 2011.http://jlne.ws/10lgMpZ Bobcat Goldthwait Demonstrates VolatilityRussell Rhoads, CBOEThe industry standard for measuring market volatility is the CBOE Volatility Index better known as VIX.  One of the behaviors of VIX is that it tends to revert to…

JLN Options: CBOE expects to be fined by SEC for regulatory shortcomings Newsletter,Options

Lead Stories CBOE expects to be fined by SEC for regulatory shortcomingsAnn Saphir, ReutersCBOE Holdings Inc expects to be fined as much as $10 million to resolve a probe by federal authorities into its duties as a self-policing organization.http://jlne.ws/11TeLUj Option Player’s ‘Iron Condor’ Sees Range-Bound Dow Fund  Kaitlyn Kiernan, The Wall Street JournalAs the Dow looks set to finish above 15000 for the first time, one options trader set up an “iron condor” to bet the blue-chip index would remain range bound over the next seven weeks.http://jlne.ws/15q2JYX Dow Climbs Above 15,000 on Stimulus Optimism, EarningsInyoung Hwang, BloombergU.S. stocks rose, sending the…

JLN Options: Are Options Used to Cheat on Takeovers Using Insider information? Yeah, I think so… But Let me Prove it. Newsletter,Options

Lead Stories Are Options Used to Cheat on Takeovers Using Insider information? Yeah, I think so… But Let me Prove it. Ophir Gottlieb, LivevolIn my opinion, the use of options to garner unfair (read: illegal) financial gains through the use of private/insider information is a legitimate phenomenon that is identifiable on a case-by-case basis (read three articles included below as heuristic examples), as well as in a broader analysis.Bottom line, yeah, the cheaters are using options. Or so I think…http://jlne.ws/11fZ5zq Hedge Fund Survey: ‘Findings Are Troubling’Larry Doyle, Wall Street PitEarly last year the US Attorney for the Southern District of New…

JLN Options: BOX ‘JUMBO’ SPY OPTIONS WIN SEC APPROVAL Newsletter,Options

Lead Stories BOX Offers Jumbo SPY(Press release via email)The BOX Options Exchange announced today it received SEC approval to offer Jumbo SPY to its customers. SPDR S&P 500 ETF (SPY) is currently the most widely recognized ETF in the U.S. and tracks one of the most popular indexes in the world, the S&P 500 Index. Jumbo SPY Options are a new options contract overlying 1,000 SPY ETF shares per contract, as compared to 100 shares per contract for standard options. BOX expects to start trading Jumbo SPY on Friday, May 10. The approval order can be found at  http://www.sec.gov/rules/sro/box/2013/34-69511.pdf US…

JLN Options: High-Frequency Trading Is ‘Basically Evil’: Munger Newsletter,Options

Lead Stories High-Frequency Trading Is ‘Basically Evil’: MungerPaul Toscano, CNBC (via Yahoo Finance)Events in Europe are a great example of bankers gone wild and you simply can’t trust them, said Warren Buffett’s right-hand man Charlie Munger.http://jlne.ws/10x8N94**Munger goes after more here than just HFT.  As regards HFT John Lothian News recently interviewed Raj Mahajan, Allston Trading CEO, who has a different take on HFT than Munger does. Go here to watch the video (not taking sides here, merely offering a counterpoint). –JB CBOE outage won’t limit listing of stock-index options: new CEOAnn Saphir, ReutersThe Chicago Board Options Exchange outage that blocked…