May 01, 2025 | | |  | Jeff Bergstrom Editor John Lothian News | |
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Observations & Insight  Traders are turning to Weekly Energy options more than ever to precisely hedge price shifts in the crude oil and natural gas markets. Add them to your CME Direct Quick Options Grid. Watch how. Lead Stories Nasdaq Plan Will Bring Zero-Day Option Boom Closer to Single Stocks Bernard Goyder and Lu Wang - Bloomberg Nasdaq Inc. wants to increase the number of days that options on megacaps like Nvidia Corp. and Tesla Inc. can expire, in what could be a key step toward expanding Wall Street's zero-day trading boom to single stocks. The explosive growth in the buying and selling of derivatives with less than one day to expiration - known as 0DTE options - has so far been largely contained to contracts tied to major indexes such as the S&P 500 and a handful of corresponding ETFs. That's because they boast daily expirations, whereas options on single equity names only expire on a Friday. /jlne.ws/4jI9bSATariff turmoil drives $31bn margin surge at FCMs; JPM and Goldman lead futures brokers to record margin highs amid Trump tariff shock Joshua Walker - Risk.net The first two weeks of April saw required margin for futures and options across US futures commission merchants (FCMs) soar by $30.9 billion - the largest fortnightly rise since March 2020 - after US President Donald Trump's announcement of sweeping tariffs sparked sharp market volatility. Across 49 reporting FCMs, aggregate required margin reached $331.1 billion as of April 18, up by 10.3% from the end of March and an all-time high. /jlne.ws/4lTJkbFSchwab Warned Thousands at Risk of Margin Calls as Volatility Soared on Trade War Paige Smith - Bloomberg It's a "pre-margin-call call," Wurster said Thursday at a Reuters event. Schwab reaches out to clients if they're nearing a margin call âEUR" triggered when money is needed in a margin account to meet minimum capital requirements âEUR" because some clients opt to add funds rather than being automatically pulled out of a position, he said. "We absolutely have had to do a lot more of those." /jlne.ws/4m3K0eLU.S. Economy Contracts at 0.3% Rate in First Quarter; The reading fell short of the 0.4% growth that economists surveyed by The Wall Street Journal expected Harriet Torry - The Wall Street Journal The U.S. economy contracted in the first three months of 2025, as businesses rushed to stock up on imports ahead of tariffs. The Commerce Department said U.S. gross domestic product-the value of all goods and services produced across the economy-fell at a seasonally and inflation adjusted 0.3% annual rate in the first quarter. That was the steepest decline since the first quarter of 2022. /jlne.ws/3YSZiZEExecs at Ray Dalio's hedge fund say we're in a 'once-in-a-generation' economic shift that 'threatens the existing world order' Stuart Dyos - Fortune Veteran investment experts at Bridgewater Associates say the current economic outlook imperils the existing global hierarchy. In a newsletter obtained by Quartz, the executives criticized the Trump administration's shift to mercantilism and its "exceptional risks." The assessment stands in stark contrast to November, when one of Bridgewater's executives recommended investing in U.S. stocks under Trump. Chief investment officers at the hedge fund Ray Dalio founded, Bridgewater Associates, warned in its latest newsletter of an upheaval of the "existing world order" amid the fallout from President Donald Trump's trade policy. /jlne.ws/44T3pZx Exchanges Robinhood tops quarterly profit estimates as volatility fuels trading volumes surge Pritam Biswas - Reuters Retail trading platform Robinhood's (HOOD.O) first-quarter profit more than doubled and beat analysts' estimates on Wednesday, driven by a surge in trading volumes from clients looking to hedge their positions amid choppy markets. The company's transaction-based revenue, or income generated from fees for facilitating trading in options, cryptocurrency and equities, jumped 77% in the quarter. /jlne.ws/430pC5n Regulation & Enforcement Citadel Securities Warns SEC That Private Rooms, 24-Hour Trading Are Emerging Risks Katherine Doherty - Bloomberg Citadel Securities is urging the Securities and Exchange Commission's new leadership to examine a list of what it argues are emerging and mounting risks, including opaque trading in so-called private rooms and the push by US stock markets to operate around the clock. Billionaire Ken Griffin's market-making firm sent more than 30 recommendations, spotlighting concerns in equities, credit, treasuries, options and digital assets. Subjects included private rooms - a twist on dark pools, in which only certain parties are allowed to transact. "Now is the right time to comprehensively review the current regulatory framework and take decisive action to remove unnecessary costs and increase efficiency to unleash a new wave of innovation," the firm wrote in a document sent to the commission and reviewed by Bloomberg. /jlne.ws/44RmICvSEC Delays Dogecoin and XRP ETF Decisions Shaurya Malwa - CoinDesk The U.S. Securities and Exchange Commission (SEC) delayed approval decisions on spot xrp (XRP) and dogecoin (DOGE) exchange-traded funds (ETFs) late Tuesday, in line with analyst expectations. The SEC said it will wait until June 15 for the next steps for the Bitwise DOGE ETF and June 17 for the Franklin XRP Fund, separate filings show. /jlne.ws/4iI0mGT Technology ETF Monthly Trading Value via "CONNEQTOR" Reach Record 300 billion JPY JPX Tokyo Stock Exchange, Inc. ("TSE") launched CONNEQTOR service, a RFQ (Request for Quote) platform, in February 2021 with the aim of improving liquidity in the ETF market. We are pleased to announce that the monthly trading value via CONNEQTOR reached a record high of 306.4 billion JPY (average daily trading value of 14.5 billion JPY) in April 2025. /jlne.ws/4dgJHcBFind Your Edge with Cboe's OCS Cboe The Challenge of Change The fast-moving nature of the Australian markets presents numerous challenges for Cboe Australia's Trading Participants in their pursuit to deliver their customers high quality services within an environment placing high demands on resourcing from a regulatory and technology perspective. This is compounded or contributed to by a macro environment where market infrastructures are central to this technology change and the associated overheads of managing this across both local and global environment puts significant demands on resources. /jlne.ws/4cX6o5f Strategy Wall Street could be facing a long bear market, this viral report warns. Here's how investors can prepare.; A confluence of factors are conspiring to drive stocks lower Joseph Adinolfi - MarketWatch A perfect storm could push stocks into a long, grinding bear market unlike anything investors have witnessed in decades, according to a recent report that is going viral on social media. In the report, published by the Substack blog "The Last Bear Standing," the author made the case that the sense of complacency that has shielded stocks from deeper losses could soon yield to anxiety, denial and panic as a confluence of factors usher in a punishing bear market. The ensuing downturn could make 2022 âEUR" the worst year for stocks since 2008 âEUR" look relatively mild by comparison. /jlne.ws/4lRYmyJ Education Exploring the Advantages of Options-Based Bitcoin ETFs Nick Wodeshick - ETF Trends Lately, more and more issuers are launching new options-focused ETFs onto the market. As a whole, options strategies can provide distinct benefits to their investors. Using options can help a portfolio stay engaged with a chosen security, while offering a flexible hedge against potential risk. This trend extends into the crypto ETF space, as well. A good number of new crypto ETF products apply some degree of an options overlay to execute their investment objectives. /jlne.ws/3GyGXLf Miscellaneous Top Trump economist derided as 'incoherent' on tariffs after closed-door meeting with investors Greg McKenna - Fortune Stephen Miran, who heads the president's Council of Economic Advisers, reportedly failed to reassure bond investors about the president's tariff plans. In a memo authored shortly after President Donald Trump's election victory, Miran said a stronger dollar was key to making other nations bear the burden of tax hikes on imports. The greenback, however, is down roughly 8% year-to-date. The Trump administration has clear incentive to smooth things over with bond investors who may have forced the president to back off his sweeping "reciprocal tariffs" earlier this month. But one of Trump's top economists, who authored a tariff blueprint read widely on Wall Street, reportedly failed to reassure several leading fixed-income traders in a meeting at the White House last week. /jlne.ws/3GM2JLq  | | JLN Options is sponsored by: | | | | |  |  |  |  | | | | |  |  |  |  |
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