| October 27, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Bitcoin and Ether Options Activity Hits $20B
Lyllah Ledesma and Omkar Godbole - CoinDesk
The crypto options market is booming. The notional open interest, or the dollar value locked in active bitcoin and ether options contracts on leading exchange Deribit has risen to $20.64 billion, according to data tracked by Switzerland-based Laevitas. The tally nearly parallels the peak registered on Nov. 9, 2021, when bitcoin traded above $66,000, 90% higher than the going market rate of $34,170. In other words, the current open interest in contract terms is significantly higher than in November 2021. "The milestone has been achieved with nearly double the number of outstanding contracts, representing not just a substantial triumph for Deribit, but also a clear indicator of the broader market growth and the escalating interest in options among our clients," Luuk Strijers, chief commercial officer at Deribit, told CoinDesk. Deribit controls 90% of the global crypto options activity.
/jlne.ws/3sc1RZS
China Stock Selloff Threatens $27 Billion of Derivatives in Another Market Risk
Bloomberg
Another 10% decline in a major Chinese equity gauge may trigger a wave of selling in index futures tied to structured products, adding fresh risks to the slumping stock market.
Investors face losses in complex "snowball" derivatives at maturity when a benchmark falls below a so-called knock-in level. For those tied to the CSI Smallcap 500 Index, the average threshold is 4,865, according to estimates by China International Capital Corp. The gauge traded at around 5,417 as of 9:52 a.m. Friday.
/jlne.ws/46T4NK4
'Big Short' Michael Burry's Bets Against S&P 500 and Nasdaq Pay Off
Filip De Mott - Markets Insider
Michael Burry's bearish equity bets earlier this year have proven correct as the S&P 500 and Nasdaq have sold off sharply.
His spot-on bets against subprime mortgages were portrayed in "The Big Short" and earned him a massive investor following.
On Friday, the S&P 500 entered correction territory, joining the Nasdaq after it made a similar move earlier this week.
/jlne.ws/478CZAV
ISL Hedging for Shekel Losses Costs More as Israel-Hamas War Continues
Netty Idayu Ismail - Bloomberg
The cost of hedging against losses in the Israeli shekel has soared as traders brace for the next phase of the war, undaunted by the central bank's resolve to defend the currency.
The extra cost to protect against declines in the coming month, versus hedging against gains, reached 1.7 percentage points on Friday, compared with about 1 point three weeks ago. That's near the highest since July, when investors were concerned about moves to weaken the country's judiciary system.
/jlne.ws/3MiSxdk
Global bond rout looks 'tremendously dangerous' for stocks, hedge fund manager warns
Karen Gilchrist - CNBC
An intensifying bond rout is piling pressure on the global economy and creating a "tremendously dangerous" outlook for equities, the chief investment officer of Livermore Partners hedge fund said Friday.
A new era of higher interest rates has caused bond yields to surge, hampering returns for investors and flipping on its head the status quo of the past decade-and-a-half, David Neuhauser told CNBC. Bond yields move inversely to prices.
/jlne.ws/49dzxqE
Goldman's JPMorgan Copycat ETF Launches in 'Early Days' of Boom
Katie Greifeld - Bloomberg
Goldman Sachs Group Inc. is the latest exchange-traded fund issuer attempting to take market share from JPMorgan Chase & Co.'s breakout active strategy lineup. The actively managed Goldman Sachs S&P 500 Core Premium Income ETF (ticker GPIX) and the Goldman Sachs Nasdaq-100 Core Premium Income ETF (GPIQ) both begin trading Thursday, according to a press release. GPIX and GPIQ track the S&P 500 and the tech-heavy Nasdaq 100, respectively, while also selling call options tied to their benchmarks for additional yield. Each fund charges 29 basis points.
/jlne.ws/46E3qi5
Short Sellers Quit Emerging Markets With ETF Bets at 17-Year Low; Bearish bets on the Vanguard ETF have fallen to near zero; Investors have bailed on EM assets amid China's property woes
Srinivasan Sivabalan - Bloomberg
The selloff in emerging markets has been so severe this year that short sellers are signaling they're done.
Short positions on the Vanguard FTSE Emerging Markets Exchange Traded Fund have dwindled to 0.01%, the lowest level since July 2006, according to data from IHS Markit.
/jlne.ws/3s81Wh8
Imaginary bitcoin ETFs are already 30 times more valuable than all the actual bitcoin ETFs
Bryce Elder - Financial Times
Crypto works a little like Candyman: say the name often enough and something might appear from nothing.
This not-particularly-virtuous circle of token prices and attention seeking is a thing we talk about quite often. A year ago, for example, it somehow became a matter of international importance that ethereum was going to change its blockchain validation method:
/jlne.ws/40hXvNs
| | | | | | Exchanges | | | Cboe Global Markets Announces Increase in Share Repurchase Authorization; Declares Fourth-Quarter 2023 Dividend
Cboe Global Markets
Increases share repurchase authorization by $250 Million; Quarterly cash dividend of $0.55 per share. Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced its Board of Directors has authorized the company to repurchase up to an additional $250 million of its outstanding common stock and declared a quarterly cash dividend of $0.55 per share of common stock for the fourth quarter of 2023.
/jlne.ws/46L0EYd
| | | | | | Regulation & Enforcement | | | If It Moves, the SEC Regulates It
The Editorial Board - WSJ
After the meme stock craze in early 2021, progressives accused hedge funds of market manipulation. Although the agency didn't find evidence of illegal conduct, Chair Gary Gensler is following Sen. Elizabeth Warren's orders by imposing new regulations that will increase the cost of investing and, ironically, the risk of market manipulation.
/jlne.ws/499rMSt
| | | | | | Strategy | | | Option Volume
Cboe (Video)
In #Vol411, Joel Hawthorne @louiswinthrop lets us know that there was a total of about 50.5 MIL in #option volume on Thursday - making it ~15% above recent average levels, today's #equity options have been led by $TSLA with 210-strike calls and more.
/jlne.ws/3tXHUGr
| | | | | | Education | | | The Benefits And Evolution Of Cboe's Index Options: A Quick Guide
Yahoo Finance
Index options have come a long way since their inception, evolving from being the domain of floor traders to becoming accessible assets for the broader pool of retail traders. However, just like any tradable asset, they are not immune to risk. In this article, we will delve into the benefits of index options and how they have evolved to cater to a broader audience.
/jlne.ws/45P7drx
| | | | | | Miscellaneous | | | Markets in an Era of Clashing Superpowers
John Authers - Bloomberg
Are we entering a new era? And does it matter?
The world is a mixed-up place at present. The situation in Israel is suddenly its most violent in half a century, while a once-unimaginable war in Ukraine drags on with little sign of resolution. Relations between the US and China are deteriorating rapidly, almost as if Richard Nixon's visit to Mao Zedong in 1972 had never happened. The US House of Representatives fired its speaker and then needed three weeks to agree on an ultra-conservative alternative. And, back on Points of Return's normal territory, inflation has returned and the interest rates to control it are the highest in a generation.
/jlne.ws/40hWBAy
Wall Street legend Byron Wien dies at 90. Here are his '20 life lessons'
Joseph Adinolfi - MarketWatch
Wall Street said goodbye to a legendary figure on Thursday when news broke that Byron Wien had died at the age of 90, according to news reports.
For those who are unfamiliar, Wien gained a large following in global finance for his annual lists of "10 surprises" for the coming year.
He started publishing the list, which tried to anticipate developments that could blindside investors, in 1986 while working at Morgan Stanley.
/jlne.ws/46NvorQ
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