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Tag Archives: VXX

Seth Golden still betting on calm; Derivatives ready for low touch? Newsletter,Options

Observations & Insight Tuesday Miscellany Spencer Doar – JLN Our video of the day is of Maura Cunningham’s MarketsWiki Education talk in New York. She is the founder and executive director of Rock The Street, Wall Street, a nonprofit focused on financial literacy for young women. Why is this important? Two out of three women report knowing little about finance. Moreover, 80 percent of teachers self report feeling incapable of educating young people about personal finance. All eyes are on Apple right now. According to the OIC, NYSE’s new FANG+ index options have traded 11 contracts today. Now would be…

Houndstooth’s long-vol ETF bet; GEM liquidates its books; Earnings worries Newsletter,Options

Observations & Insight Big World Cup Correction and other Miscellany SD – JLN Boy oh boy did I misread the Germany v. Korea recap. It was NOT at all novel that the previous World Cup winner was knocked out in the group stage. In fact, it’s the opposite. From the USA Today:: “Four of the last five winners of the previous tournament have now crashed out in the group stage the next time around.” I should stick to American football references I guess… (That doesn’t alter the fact that UBS’ and Goldman’s computer predictions were way off, though.) Speaking of…

Short volatility Waterloo; Hedging activity pop; VIX ETPs in all their glory Newsletter,Options

Observations & Insight Vol-cano Erupts – How’s Seth Golden Doing? Spencer Doar – JLN Last year there were a few stories that came across the desk regarding the juniorization of firms and how removing experienced senior personnel could present risks of its own. After all, if you came into the markets in the 2010s, how would you have experience with crazy drawdowns? (Myself included.) Maybe some are ahead of the curve and have at least seen Trading Places. Well, a lot of staff just gained some experience. The options and volatility stories of the day are intertwined and generally fall…

Risk Premia Catches On; SKEW vs. VIX; Intel Chip Flaws and Options; BTC options Newsletter,Options

Lead Stories Derivatives: Asset managers catch on to risk premia strategies Costas Mourselas – GlobalCapital Risk premia strategy, a form of passive investing, is gaining ground among asset managers as they turn to the product for a steady source of yield and a tool for hedging uncertain macroeconomic conditions. This type of investing relies on ideas — many of which are derived from academic papers — that have consistently delivered returns, and are expected to do so into the future. jlne.ws/2qn8xU7 *****SD: Just catching on, eh? Where ya been? SKEW Index Continues To Diverge From VIX Index Sean Emory –…

The Crowded Short Vol Trade; Earnings drive swings; Monthly volumes Newsletter,Options

Observations & Insight Cboe Throws Launch Date Punch at Crosstown Rival CME Spencer Doar – JLN Aren’t people supposed be getting into holiday mode? Isn’t December supposed to be slow, with nothing but junior staff running around trying not to mess things up? In the cryptocurrency space, that’s clearly not the case. The CFTC on Friday said CME Group and Cboe Global Markets were okay to launch their respective bitcoin futures products through the self-certification process. CME quickly announced it would launch bitcoin futures on December 18, and then Monday morning, Cboe announced a December 10 launch date and free…

Bitcoin certifications; Least Volatilite Year Ever?; Interactive Brokers customers file complaint Newsletter,Options

Observations & Insight Putting on My Broker Hat About Bitcoin John J. Lothian – JLN Everyone is asking about bitcoin. A journalist called and asked to interview me. A magazine called and asked me to write something. A brokerage firm chief risk manager called to ask me my opinion about bitcoin and bitcoin futures. Two weeks ago, a former employer I have not seen in 10 years called me out in Coindesk.com for my bitcoin qualms. At the dinner table my son Robby opened up about owning not just bitcoin, but bitcoin cash, ether and monero. This is a full-fledged…

JLN Options: All about the crowd in VIX ETPs Newsletter,Options

Observations & Insight Hurricane to Cost Tens of Billions, but a Quick Recovery Is Expected Conor Dougherty and Nelson D. Schwartz – NY Times The brutal storm pummeling the Houston area is likely to rank as one of the nation’s costliest natural disasters, with tens of billions in lost economic activity and property damage across a region crucial to the energy, chemical and shipping industries. But economists say the region is likely to recover quickly and may even experience a bump in growth from rebuilding. nyti.ms/2xKa4Ct ++++++ Deluged Texas Braces for More Rain, and Years of Recovery Julie Turkewitz, Richard…

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…

JLN Options: ISE Shelves Plan to Bring Pari-Mutuel Settlements to Options Market Newsletter,Options

Lead Stories ISE Shelves Plan to Bring Pari-Mutuel Settlements to Options Market  Katy Burne – The Wall Street JournalAll bets are off on one firm’s bid to make playing the options market a bit more like going to the track.The International Securities Exchange has shelved plans for an options contract using technology also known in the world of horse races — so-called pari-mutuel settlement, in which all bets are pooled upfront and the winners’ take comes out of the pool.http://jlne.ws/1azr690 Big Rally — So the Market Defies Gravity?Andrew Giovinazzi – The Options InsiderWhat a difference a day makes.  The relatively subdued…