| January 17, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Short Put - Selling Short Put Options - Term of the Week
JohnLothianNews.com
This video explores the basics of how a short put option contract works.
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Options Discovery Episode 29: Understanding The Foundations To Become A Successful Options Trader; Mark Esposito, Options Mentor at McMillan Analysis Corps., Discusses This and More With JLN's Asma Awass
JohnLothianNews.com
In this episode of Options Discovery, Asma Awass discusses the different principles that traders should understand about options. This episode includes a breakdown of calls and puts, choosing the underlying asset, and volatility & the Greeks. Asma then sits down with Mark Esposito, an options mentor at McMillan Analysis Corp, who shares more insight on the foundations of options trading. You can check out the Options Mentoring Program here: https://www.optionstrategist.com
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| | | | | | Lead Stories | | | S&P 500 Wobble Pushes 'Fear Gauge' to Highest Since November
Elena Popina - Bloomberg
A sense of torpor that's descended on Wall Street's chief fear gauge since the fall is starting to disappear.
A drop in the S&P 500 Index on Wednesday pushed the Cboe Volatility Index briefly above its 200-day moving average, the line it hasn't closed above since October. The VIX â measure of the 30-day implied volatility of the S&P 500 based on out-of-the-money options prices â edged toward 16 in the morning, a level that implies daily swings of 1% could be in the offing, before slipping back.
/jlne.ws/48WJgR1
VIX At 2-Month High: Fears Mount As Markets Re-Assess Rate Cut Premium
Benzinga via Markets Insider
Equity markets are having a bumpy ride so far in 2024, and Tuesday was the worst day yet, with weaker sentiment underlined on Wednesday by a move on Wall Street's "fear gauge" to a two-month high.
The CBOE VIX volatility index jumped 4.8% to 14.5 on Wednesday ahead of the market open. The ProShares VIX Mid-Term Futures ETF (NYSE:VIXM), an exchange traded fund that attempts to mirror the performance of the volatility index, was up 2.4% on Wednesday at 16.39.
/jlne.ws/3O4LKoo
NYSE's Bitcoin Opportunity: Options on Bitcoin ETFs May Fuel Future Growth
Teuta Franjkovic - CCN
The introduction of spot Bitcoin ETFs has seen a remarkable increase in trading activity, with volumes soaring to $10 billion within a mere three days of their launch.
At the same time, there's significant market speculation about the potential for allowing options trading on the shares of commodity-based trusts, specifically for some of the newly released Bitcoin ETFs.
/jlne.ws/47F1Ls4
VanEck to liquidate its bitcoin futures ETF after launching spot fund
Tomi KilgoreFollow and Frances Yue - MarketWatch
VanEck said Wednesday that it will liquidate its bitcoin futures exchange-traded fund at the end of this month, as the firm expects investor appetite to shift to newly approved funds investing directly in the cryptocurrency.
/jlne.ws/3HoW4UQ
Can AI and a supercomputer beat the markets? This is one of the hedge funds trying to find out.
Louis Goss - MarketWatch
In a downtown Toronto skyscraper one block away from the Hockey Hall of Fame, a small hedge fund is hoping it has found an edge in financial markets. Castle Ridge Asset Management is betting on Wallace, a purpose-built supercomputer behind the hedge fund's trading strategies driven by artificial intelligence.
/jlne.ws/3Hp8Cvg
| | | | | | Exchanges | | | Cboe FX 2023 Yearly Recap and Look Ahead
Cboe
As we start a new year, we wanted to recap some of our key achievements in 2023 and provide an update on what to expect from us in 2024 to help support your FX trading needs.
The FX industry was presented with a challenge in 2023 to live up to its record-breaking volumes of 2022, but Cboe FX was able to produce year-over-year growth. We gained market share through increased adoption of our services from existing and new clients. As our platforms grew, we continued to invest in new products and our technological scalability. We expanded geographically, led with transparency and laid the groundwork for our expansion into U.S. Treasuries.
/jlne.ws/4aYdjK1
Cboe's Data and Access Solutions Targets Global Expansion
Shanny Basar - MarketsMedia
Last October Adam Inzirillo was promoted to global head of data and access solutions at Cboe Global Markets as part of the derivatives and securities exchange network's changes in its senior leadership to support the company's global growth strategy. He was previously head of North American equities at Cboe for almost four years, and replaced Catherine Clay, who was appointed to the newly created role of global head of derivatives.
/jlne.ws/47DkMez
Request For Proposal: Market Making Of Options On Three-Month Corra Futures
Montreal Exchange
Bourse de Montreal Inc. (the "Bourse") is issuing a Request for Proposal ("RFP") for the market making of the Options on Three-Month CORRA Futures (OCR). This RFP is intended for approved participants and foreign approved participants, as well as their eligible clients, interested in submitting proposals outlining their abilities and commitment towards market making activities for the designated contracts. The market making requirements and the conditions of the program are indicated in the attached RFP. At the end of the RFP submission period, the Bourse may proceed with the selection of up to two (2) market
/jlne.ws/3Sl0mCF
| | | | | | Regulation & Enforcement | | | EU approves new rules to shake up market price data for investors
Huw Jones - Reuters
European Union lawmakers gave the nod on Tuesday to giving investors better access to stock and bond prices and helping the bloc's capital market compete better with Wall Street in raising funds for companies to grow. The European Parliament voted in favour of revising the bloc's securities rules known as MiFID by mandating the creation of "consolidated tapes" or single real-time snapshots of bond prices by mid-2025, and for stocks and derivatives during 2026.
/jlne.ws/48GKBfm
FIA and SIFMA comment on operational risk elements of Basel III proposal
FIA
FIA joined with the Securities Industry and Financial Markets Association in submitting a comment letter to US banking regulators regarding the operational risk elements of their proposed changes to US bank capital requirements. The letter notes that the proposed changes would require banking organizations to hold capital against fee-based business activities such as retail brokerage, investment advisory services, custody and client clearing of derivatives. These businesses are relatively low risk and the proposed changes would result in an "unnecessarily high calibration of required capital."
/jlne.ws/3S0oXeL
FIA files comment letter opposing GSIB Surcharge Proposal; Capital required to engage in client clearing activities would increase by more than 58%
FIA
FIA filed a comment letter today with the Board of Governors of the Federal Reserve System expressing serious concerns with the significant increase in capital requirements for client derivatives clearing activities that the Board has proposed in its GSIB Surcharge Proposals. The GSIB Surcharge Proposal's changes to the treatment of client-cleared OTC derivatives transactions would, on their own, increase the capital required to engage in client clearing activities by more than 58%.
/jlne.ws/3HnW2fN
FIA strongly opposes Basel III Endgame Proposal; Proposals would dramatically increase capital requirements for banks offering derivatives clearing services
FIA
FIA has warned US banking regulators that it has "serious concerns" about provisions in the Basel III Endgame Proposal that change the capital treatment of derivatives clearing activities that US banks provide to their clients. In letters filed today with the three agencies that issued this proposal - the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency - FIA said the proposed changes would increase the capital required to engage in client clearing activities by more than 22%, and therefore could lead to higher costs for end users such as agricultural businesses, insurance companies and pension funds.
/jlne.ws/47CzVg7
| | | | | | Strategy | | | Protecting Against A March Volatility Spike
Gavin McMaster - The Globe and Mail
Market volatility could be on the rise as measured by the CBOE Volatility (VIX) Index. VIX is a real-time index that represents the market expectation for near-term volatility in the S&P500 index.
Investors and traders have long used VIX as a measure of the level of risk, fear or stress in the market.
/jlne.ws/3TXD9I6
IV Responses to Large Daily Moves
tastylive (Video)
If you want to trade like a tastylive trader, you have to learn how to talk like a tastylive trader. Sit down with Tom and Tony as they dish out and discuss popular trading topics that give you an edge when opening, closing and managing your trades.
/jlne.ws/48zCf99
Discord
Cboe (Video)
In #Vol411, @JoeTigay discusses the uptick in volatility as tensions play out in markets regarding the prospective path of the Fed's interest rate policy. #VIX #SPX
/jlne.ws/48Yfbkk
| | | | | | Miscellaneous | | | Trader of the Year: Millennium's Charlotte Nutting; Annabel Smith sits down with Millennium senior trader and winner of the 2023 Leaders in Trading, Trader of the Year Award, Charlotte Nutting, to explore her journey to the hedge fund's trading desk, her decision to trade multi-asset and spearheading better gender diversity in the industry.
Annabel Smith - The Trade
Senior trader at Millennium, Charlotte Nutting, has been on a rapid ascension in the last few years. In 2019, Nutting was nominated by her industry peers as one of The TRADE's Rising Stars of Trading and Execution, and just four years later, she was shortlisted for The TRADE's coveted Buy-side Trader of the Year Award. Up against other individuals from Invesco, Liontrust Asset Management, Baillie Gifford and State Street Global Advisors (SSGA), Nutting took home the award after an industry-wide vote.
/jlne.ws/3SmMdE7
****** Congratulations to Charlotte!~JJL
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| | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
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