| August 09, 2021 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
The Spread - August 6, 2021
JohnLothianNews.com
Robinhood shares get an options boost; July options volume up more than 29%; John Lothian says exchange competition is heating up; The Delta variant and volatility; Bullish bets in bitcoin and ether options; And tastytrade's Jermal Chandler goes back to the basics with calls and puts in the Term of the Week.
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| | | | | | Lead Stories | | | The real reason options are pushing meme stocks into the stratosphere
John Detrixhe - Quartz
We are only just beginning to understand the ramifications of the retail trading boom.
Take Robinhood, which had a lackluster debut. Its shares dropped 8% on their first day of public trading. But on Aug. 4, just a few days after the IPO, options contracts linked to the company's stock became available, and the shares took off like a rocket.
As many have speculated, the options did play a role in the roller coaster rally that followedâbut probably not for the reason some traders think, especially if they haven't accounted for changes in how trading firms hedge meme stocks.
/bit.ly/37tq6V8
If the S&P 500 breaks above this key level, it could set off an 'epic emotional squeeze' not unlike 1999, strategists warn
Barbara Kollmeyer - MarketWatch
Positive hangover from Friday's blowout jobs data may be fading as investors greet the start of a new week with fresh concerns about the spread of COVID-19.
Goldman Sachs is warning that China's economy will take a hit from that virus and that isn't helping oil prices, which are getting pummeled this morning. Stock futures are mixed and gold is also limping after a so-called "flash crash" in Asian trading.
/on.mktw.net/3lNVTc2
Cash Is Flooding Into Short-Term Markets Like Never Before. Is That a Bad Sign?
Julia-Ambra Verlaine - WSJ
An unusual surge of short-term lending by cash-rich companies is raising concerns on Wall Street that a period of unrest may lie ahead.
Investors such as money-market funds and banks are parking over $1 trillion in spare cash overnight at the Federal Reserve. That is the most on record since the Fed opened its facility for these reverse repurchase agreements in 2013.
/on.wsj.com/2X61Kip
For AMC, Earnings Day Matters Even If Its Actual Results Don't
Michael P. Regan and Bailey Lipschultz - Bloomberg
It's been a cruel summer for the self-described "apes" who make up the diehard shareholder base of the movie-theater chain AMC Entertainment Inc. and joined forces to drive its stock to heights that Wall Street analysts consider absurd. Its earnings report later on Monday may offer at least some short-term relief.
The stock has rallied in the trading session that followed each of its last six earnings reports, notching an average one-day gain of almost 7%, even though it only posted a profit once in those quarters and missed Wall Street's average earnings estimate in four of them.
/bloom.bg/3AoZnFQ
Stocks marginally higher as gold, oil declines spook sentiment
Ritvik Carvalho and Wayne Cole - Reuters
Global shares made tentative gains on Monday as sharp falls in gold and oil prices briefly spooked sentiment, while the dollar reached a four-month high versus the euro after an upbeat U.S. jobs report lifted bond yields.
European shares ticked slightly higher after a mixed start in early trading, as a fall in commodity prices weighed on Britain's blue-chip index, while other regional indexes stayed near recent highs with earnings season winding down.
/reut.rs/3fIL6f5
| | | | | | Exchanges | | | Micro WTI Crude Oil Futures Surpass 1 Million Contracts Traded
CME Group
CME Group, the world's leading and most diverse derivatives marketplace, today announced that Micro WTI Crude Oil futures volume surpassed 1 million contracts on Friday, August 6, 2021. "Since launching just a month ago, we continue to see strong interest across the globe for our smaller-sized Micro WTI Crude Oil contract," said Peter Keavey, Global Head of Energy. "Our benchmark WTI futures have always been the market's choice for managing crude oil exposure, and the uptick we are seeing in new customers utilizing the Micro WTI Crude oil futures demonstrates the value in the robust transparency and price discovery that our markets offer for traders of all sizes."
/prn.to/3yCYhFZ
Euronext announces volumes for July 2021
Euronext - Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris
Euronext, the leading pan-European market infrastructure, today announced trading volumes for July 2021.
From this release onwards, cash trading volumes exclude fixed income trading volumes. Comparative data for the past periods have been restated accordingly.
/bit.ly/3xtuzC5
| | | | | | Technology | | | Interactive Brokers automates regulatory documentation with LPA; Under a new partnership, Interactive Brokers has installed the Capmatix Doc and Data Cockpit tools to automate its documentation processes.
Hayley McDowell - The Trade
Interactive Brokers has implemented a technology solution to automate its regulatory and product documentation processes across all instruments through a new partnership with LPA Group. The capital markets technology firm has provided Interactive Brokers with its Capmatix Doc and Data Cockpit tools for documentation in stocks, bonds, options and futures in more than 135 markets via a 24/7 automation process.
/bit.ly/3fKRxyC
Colt Set to Connect to Cboe Europe Derivatives From Day One; Capital Market customers will benefit from a quick turn on and low latency connection to the new pan-European equity derivatives exchange
Colt
Colt Technology Services, a leading provider of agile, high bandwidth connectivity solutions, has today announced it will provide connectivity to Cboe Europe Derivatives (CEDX) via Colt's financial extranet, Colt PrizmNet.
/bit.ly/3lMwvTO
| | | | | | Education | | | Exchange Analytics Rolls Out New Futures Non-Competitive Trading Training
ExchangeAnalytics.com
The Commodity Exchange Act requires that every futures and options contract be traded openly and competitively, except for certain authorized noncompetitive transactions. Block trades and Exchange for Related Positions (EFRPs) are the primary noncompetitive trades authorized by Exchange rules.
/bit.ly/3fMmIcR
****SC: The Cboe Options Institute is hosting a live 75-minute webinar with Geralyn Endo, Cboe's global head of client engagement, and Henry Schwartz, Cboe's head of product Intelligence, who will discuss Options Order Flow Analysis and Tools on Wednesday, August 11, at 12 p.m. ET. Topics include basic concepts for the implementation of option orders, tools and techniques for efficient orders, and market sentiment gauges. You can register here.
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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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| | | Jeff Bergstrom
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