| March 26, 2024 | | | | | Jeff Bergstrom
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Term of the Week - Maturity, an Option's Lifetime
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An option's lifetime, terminating at maturity.
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| | | | | | Lead Stories | | | Trump Media Is Now the Most Expensive US Stock to Bet Against; Borrowing costs over 200 times average for US-listed firms; SPAC short-sellers lost $158 million on paper in 2024: S3
Bailey Lipschultz - Bloomberg
Betting against former president Donald Trump's social media startup is one of the most difficult and expensive short trades in the market, according to financial analytics firm S3 Partners.
Investors tempted to bet against Trump Media & Technology Group Corp. are facing annual financing costs to borrow the shares of more than 150%, and risks that the stock's meme-like volatility and loyal fanbase could burn them even more. The newly-public company is the most expensive US stock to bet against, with over $100 million of short interest, S3 data show.
/jlne.ws/3vDknvH
Reddit shares surge a day after options launch, set to nearly double IPO price
Reuters
Shares of social media platform Reddit (RDDT.N) jumped 11% on Tuesday, set to extend a strong run from a day earlier following the launch of options on the stock.
At current price of $67.5, more than $1 billion was set to be added to the company's market value. The stock was also on track to nearly double its IPO price of $34.
/jlne.ws/3xck8rZ
Calm Over Polls Leaves India Option Traders Exposed to Surprises; Boom in Indian equities accompanied by decreasing volatility; Traders paying more to insure against big swings later in 2024
Chiranjivi Chakraborty and David Marino - Bloomberg
Indian option traders appear to be relatively unconcerned that the upcoming general election will disrupt the market's steady climb higher, potentially leaving them vulnerable to an unexpected outcome.
While NSE Nifty 50 Index's monthly options expiring just after the election have risen slightly in value relative to shorter-term contracts as the world's largest democratic exercise approaches, their premium over April is 61% smaller than it was before the May 2019 vote, data compiled by Bloomberg showed.
/jlne.ws/3PHUGkv
Crypto Traders Dismiss Waning ETF Inflows as Bitcoin Holds Steady Over $70K
CoinDesk via Business Insider
Bitcoin {{BTC}} briefly topped the $71,000 mark early Tuesday before retreating as market sentiment grew on new bitcoin-based institutional product offerings and demand from traditional desks.
Crypto markets started rising on Monday as the London Stock Exchange approved a marketplace for trading bitcoin and ether {{ETH}} exchange-traded notes (ETNs) in May, as reported. The LSE will start to accept applications from April 8.
/jlne.ws/3IUS7b5
Short sellers increase bets against high-flying tech stocks
Joseph Adinolfi - MarketWatch
This market has been difficult to navigate for short sellers as stocks have climbed further into record territory. But that hasn't stopped them from dialing up their bets against high-flying technology companies.
/jlne.ws/3TBXO2E
What could spark the next stock-market selloff? Here's what history tells us.
Joseph Adinolfi - MarketWatch
Stock-market corrections are typically caused by one of three things, according to a team of investment strategists at Piper Sandler.
The S&P 500 has marched higher by nearly 30% over the past five months, prompting even bullish market strategists to entertain, or even welcome, the prospect of a "healthy" correction.
/jlne.ws/3TRZwxX
Oil market saw frenzy of hedge fund buying
John Kemp - Reuters
Investors have purchased oil at the fastest rate for more than four years, amid optimism that Saudi Arabia and its OPEC+ allies will continue to restrict production while an improving economic outlook boosts consumption.
Ukraine's drone attacks on oil refineries and export terminals in Russia, which threaten to disrupt production and exports of both crude and fuels, have turbocharged the shift in sentiment to more bullishness.
/jlne.ws/3x8SqMF
| | | | | | Exchanges | | | Copper Option Open Interest Surpasses 200,000 for the First Time Ever
CME Group
CME Group, the world's leading derivatives marketplace, today announced that open interest in Copper options surpassed 200,000 contracts for the first time ever after achieving several consecutive daily open interest records. "In today's uncertain environment, market participants are turning to the robust on-screen liquidity of our options markets to express their views on copper, a key bellwether of the global economy," said Jin Hennig, Global Head of Metals at CME Group. "This open interest milestone reflects strong global demand for these products as clients work to effectively manage their industrial metals price risk around the world."
/jlne.ws/4a8X8sy
Cboe Global Markets Commemorates 20 Years of Cboe Futures Exchange and VIX Futures Trading
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today marked the 20th anniversary of Cboe Futures Exchange (CFE) and the trading of Cboe Volatility Index (VIX) futures. CFE was launched to provide a liquid and transparent on-exchange volatility futures offering, with VIX futures being the first product listed in 2004.
On March 26, 2004, CFE successfully opened for trading, with 449 VIX futures contracts trading on the all-electronic exchange. Based on the VIX Index, which has served as a premier gauge for U.S. equity market sentiment since its launch in 1993, VIX futures are among the most actively traded exchange-listed volatility futures in the world, with total volumes reaching 53.7 million contracts in 2023. VIX futures, and the addition of VIX options in 2006, were a pivotal first step in making volatility a tradable asset class, breaking down access barriers for investors and paving the way for the development of a comprehensive ecosystem including additional futures, options and other exchange-traded products (ETPs) utilizing these derivatives.
/jlne.ws/3VAHuSu
Prestigious SRP Europe Award for SIX Swiss Exchange; For the fourth time in the last five years, the award for 'Best Structured Products and Derivatives Exchange' across Europe and the UK goes to Switzerland.
SIX
At the SRP Awards 2024 in London, SIX Swiss Exchange was distinguished as 'Best Structured Products and Derivatives Exchange' across Europe and the UK. After its three-year winning streak from 2020 to 2022, this return to the top spot marks the fourth win of SIX Swiss Exchange in the last five years, emphasizing its continued excellence and innovation capacity to drive the industry forward. A delegation composed of André Buck, Global Head Sales & Relationship Management, Sébastien Neukom, Head Structured Products Sales, and Francesco Marcon Fiastri, Head of Sales Issuer & Reference Data Services (Connexor), accepted the award. The ceremony is a highlight of the SRP Europe conference, the largest gathering of alternative investment professionals taking place for the 21st time in 2024.
/jlne.ws/3vqINsq
| | | | | | Technology | | | Kasikorn Securities Selects ICE for Enhanced Portfolio Analytics and Risk Management for Derivatives
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced that Kasikorn Securities, part of the Kasikorn Bank Group, a leading financial services provider in Thailand, has chosen ICE's Portfolio Analytics-Derivatives for pre-trade pricing, analytics and post-trade risk management.
/jlne.ws/3vvA8F5
| | | | | | Strategy | | | We Looked at Five Years of DataâHere's What Happens When Bitcoin Moves
Michael "Dr. Data" Rechenthin - tastylive
Will the exception prove the rule?
We looked at the past five years of daily Bitcoin moves and what tends to happen to the S&P 500 during those days. In general, there is little correlation between bitcoin and the S&P 500. An exception occurs when bitcoin makes a large move to the upside (+5%) or more to the downside (less than -5%).
/jlne.ws/43vILw1
| | | | | | Miscellaneous | | | #WeAreOCC - Community Impact in 2023
OCC
At OCC, championing diversity, equity, and inclusion is part of our DNA, and we take responsibility to help drive change and make an impact in the communities where we live and work. OCC is proud to partner with local organizations that support marginalized and historically disinvested communities to promote access to quality education and employment opportunities. Colleagues across our offices donated their time, talents, and funds to several nonprofit organizations throughout 2023, from launching fundraising campaigns to organizing volunteer events and more. Read on for a summary of our philanthropic efforts and the impact we're driving.
/jlne.ws/3x3T9ib
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