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Tag Archives: VXX

JLN Options: Potential Tax Change Could ‘Decimate’ Options Trading Volume Newsletter,Options

Lead Stories Potential Tax Change Could ‘Decimate’ Options Trading Volume  Kaitlyn Kiernan, The Wall Street JournalTabb Group’s Andy Nybo weighed in Thursday and on a proposed tax change that could “decimate trading volumes” in the options industry.http://jlne.ws/Z5D5DR U.S. options clearer moves to end trade type dominated by NasdaqAnn Saphir, ReutersThe clearinghouse for all stock options said Thursday it will adopt a policy aimed at abolishing a dividend-linked trading strategy that critics say could destabilize markets if left unchecked.http://jlne.ws/Z5E2MB New CBOE CEO Aims to Take Volatility Franchise Global  Jacob Bunge, The Wall Street JournalThe new chief executive of the Chicago Board Options Exchange…

JLN Options: Options Week in Review Newsletter,Options

A recent Tabb Group report found that high-frequency trading is dominating US options trading, and that keeping up with the pace of technology in a climate of tight budgets and low trading volumes is becoming too difficult for many firms.  The industry is transforming as smaller “mom and pop” market making firms disappear. The CBOE VIX, known as the “fear index,” is up 30% this month, but a chart shows that longer maturities through September have barely budged, leading Susquehanna Financial Group’s Chris Jacobson to conclude that the VIX spike is just a blip rather than a longer term trend,…

JLN Options: ‘Fear Index’ Surging? This Chart Says It’s a Speed Bump Newsletter,Options

Lead Stories ‘Fear Index’ Surging? This Chart Says It’s a Speed BumpBrendan Conway, Barron’sThe “fear index,” which jumped 18% on Wednesday, is up 30% this month. But dig a little deeper to see the way the market prices S&P 500 (SPY) volatility has barely budged.http://jlne.ws/13kP7t6 Quantitative easing is like a ‘huge glass of warm milk’ for VIXTom Bemis, MarketWatchNicholas Colas, chief market strategist at ConvergEx, argues Wednesday that if these were normal times, the fear index would be double where it is.http://jlne.ws/XTCqai Volatility Readings Signaling Systemic Changes for Stock, Gold, FX?John Kicklighter, Daily FXVolatility is used by many as a…

JLN Options: VIX Bets Post Biggest Rally in 7 Weeks as S&P 500 Drops Newsletter,Options

Commentary & Insight Raj Mahajan, Allston Trading CEO, Talks HFT and the Business of Prop TradingMarketsWiki.tv Raj Mahajan took the reins at Allston Trading as CEO in September 2012 and has spent a good deal of his time looking at the issue of high frequency trading (HFT). Allston has been one of the proprietary trading firms who has been willing to publicly discuss HFT, regulation and the future of that form of trading. Mahajan spoke with JLN’s editor-in-chief Jim Kharouf about HFT as well as the business challenges and opportunities for prop firms. Watch the video » Lead Stories VIX…

JLN Options: Options Week in Review Newsletter,Options

The long-standing battle over the CBOE‘s exclusive right to offer products based on its license agreements with Standard & Poor’s and Dow Jones indexes may end up before the U.S. Supreme Court, if Citadel and the ISE get their way.  The Court is expected to review a petition next month from ISE to hear the case, which Citadel has joined, the Wall Street Journal reported. Illinois courts have ruled in CBOE’s favor. The Supreme Court only hears 75 to 80 cases out of about 10,000 submitted, according to the Journal. If it decides to review this case, that could make…

JLN Options: Banks beef up FX options teams as big moves boost risk, rewards Newsletter,Options

Lead Stories Banks beef up FX options teams as big moves boost risk, rewardsNia Williams, ReutersBanks are strengthening their foreign exchange options desks, investing in people and technology, as companies and hedge funds seek protection or profit from big moves in major currencies.http://jlne.ws/YDpMXG Congress Considers Changing Taxation of DerivativesMichael Cohn, Accounting TodayThe House Ways and Means Select Revenue Measures Subcommittee held a hearing this week to discuss possible tax reforms on financial products such as derivatives.http://jlne.ws/YDtJvq The Implications of Increased VXX Volume  Adam Warner, Schaeffer’s Investment ResearchI took advantage of the Free Cramer to read me some Free Options. Specifically, Russell…

JLN Options: Options Week in Review Jan. 10, 2013 Newsletter,Options

Volatility ETFs hit new lows as the VIX index fell to its lowest level since June 20, 2007, ETF Trends reported. Those affected included the iPath S&P 500 VIX Short Term Futures ETN (VXX) and the VelocityShares Daily 2x VIX Short-Term ETN (TVIX). This came after a week in which the VIX index fell a record 39%. Volatility-based products have become hugely popular since the 2008 financial crisis. More than 95% of the call options on VIX futures traded in 2012 expired worthless, according to Yahoo Finance. Nasdaq OMX Group‘s chief executive Robert Greifeld said he would “definitely” consider bidding…