| January 03, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Understanding Market Movements to Make Options Trades: Matt Amberson, Founder of ORATS and Cboe trader
JohnLothianNews.com
In this Options Discovery full interview, Asma Awass speaks with Matt Amberson, Principle and Founder of Options Research and Technology Services. Matt addresses a variety of topics from his career, including his background as a Cboe trader as well the different services provided on his platform. Matt also gives more insight into trading around bullish/bearish markets, how the greeks are affected by movements in the market, how risk management can come into play when establishing positions, and more. You can check out ORATS here:https://orats.com/
Watch the video »
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OCC Reports Total 2023 Volume Data
| | | | | | Lead Stories | | | Two Cboe Indices Rose More Than 42% in 2023
Matt Moran - Cboe
This Index Insights Monthly Scorecard provides an update on the performance of dozens of indices that track the levels of volatility or the performance of hypothetical strategies that invest in options or futures.
/jlne.ws/3H7sRxg
Bitcoin Reverses Course Ahead of Eagerly Awaited ETF Decision
Emily Nicolle - Bloomberg
A slump in Bitcoin on Wednesday saw the cryptocurrency erase almost all gains it had made in the first days of this year, bucking a long-running upswing that outperformed a global malaise in traditional assets.
The world's largest token fell as much as 9.2% to dip briefly below $41,000 shortly after 7 a.m. in New York, a day after the digital asset had topped the $45,000 mark in a 21-month high. Wednesday's price swings are the largest in more than two months. The volatility also spilled over into crypto-linked stocks, with shares in the US crypto exchange Coinbase Global Inc. falling as much as 8.1% before paring the decline.
/jlne.ws/3vnwbBY
Year-end hedge fund short-covering failed to lift oil prices: Kemp
John Kemp - Reuters
Portfolio investors boosted their petroleum positions in the final two weeks of last year, as some short positions in crude were squared up, but short-covering did little to reverse the downward trend in prices.
Hedge funds and other money managers purchased the equivalent of 68 million barrels in the six most important futures and options contracts over the seven days ending on Dec. 26.
/jlne.ws/48wg5US
Could market volatility already be turning up in early 2024?
Yahoo Finance
As stocks have rallied entering the new year, only to slip back recently, volatility has reemerged as a concern after declining over the past three months. The CBOE Volatility Index (^VIX) has ticked higher again even as the S&P 500 (^GSPC) came off its highs.
Yahoo Finance's Jared Blikre breaks down the details and the seasonal aspects of the VIX's "fear gauge."
/jlne.ws/48fsEnI
| | | | | | Exchanges | | | OCC Reports December 2023 and Total 2023 Volume Data
OCC
OCC, the world's largest equity derivatives clearing organization, announced today that year-to-date average daily volume through December 2023 was 44.4 million contracts. Total monthly volume for December 2023 was 916.2 million contracts.
Additionally, OCC announced that total annual volume for 2023 was 11.1 billion contracts.
/jlne.ws/48ntbnQ
CME Group Reports Record Annual ADV of 24.4 Million Contracts in 2023
CME Group
Highest Q4 and December ADV in company history; Record annual ADV across interest rate, options and agricultural products; Record annual ADV reached outside the U.S.
CME Group, the world's leading derivatives marketplace, today reported its full-year, Q4 and December 2023 market statistics, showing it reached a record average daily volume (ADV) of 24.4 million contracts during the year, an increase of 5% over 2022. Q4 ADV increased 17% to a record 25.5 million contracts and December ADV increased 20% to a record 23.0 million contracts. Annual, quarterly and monthly market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume.
/jlne.ws/3voojQH
| | | | | | Regulation & Enforcement | | | EU regulators to probe links between banks and non-banks; EBA chair Jose Manuel Campa said regulators would investigate funding and other connections between sectors
Laura Noonan - Financial Times
EU regulators will dig deeper into the links between banks and other financial firms such as hedge funds, said the chair of the European Banking Authority, as concerns mount about the potential for contagion from stresses in the wider system. "We should be doing more and we are going to be doing more," Jose Manuel Campa said about regulators' efforts to predict how banks would be affected by strains in non-bank financial institutions (NBFIs), which include hedge funds, private capital firms and cryptocurrency groups. "We need to have an understanding of the whole underlying chain in NBFIs."
/jlne.ws/47ls0Uo
SEC, stock exchange officials meet ahead of potential spot bitcoin ETF approval;
ETFs would trade on New York Stock Exchange, Nasdaq and Chicago Board Options Exchange
Eleanor Terrett - FOX Business
A series of meetings between the Securities and Exchange Commission and a handful of stock exchanges are fueling confidence that the approval of a long-awaited spot bitcoin exchange-traded fund could be imminent.
FOX Business has learned that SEC staff attorneys from the Division of Trading and Markets are meeting Wednesday with officials from the major exchanges â the New York Stock Exchange, Nasdaq and Chicago Board Options Exchange â where the ETFs would trade.
/jlne.ws/48hObMD
| | | | | | Strategy | | | The Market May Be Too Optimistic. This Trade Can Help You.
Steven M. Sears - Barron's
Every new year begins with pure intentions. Most everyone vows to be a better version of themselves and to live a healthier life of action and consequence. Unfortunately, the stock and options markets are immune from the feel-good bromides that people like to tell themselves.
The risks that plagued markets last year have carried into 2024, with at least one critical caveat that now seems poised to define the new yearâprovided the regional wars in the Middle East and Europe don't bring global powers into direct conflict.
/jlne.ws/3TOM0fe
Does High IV Mean Quick Profits?
Kai Zeng - tastylive
For options premium sellers, entering trades when implied volatility (IV) is high can be a strategic move.
The reason is higher IV typically translates to more expensive options premiums. For instance, a one-standard-deviation (1SD) strangle on the SPDR S&P 500 ETF Trust (SPY) can be 25% more lucrative when the IV rank (IVR) sits between 25 and 50, as opposed to lower IVR levels.
/jlne.ws/3NRi0vn
Jobs
Cboe (Video)
The Fed has cooled off inflation by raising interest rates - what could that mean for the economy? Why might 2024 be a higher year for volatility than 2023 was? @JoeTigay gives us insights in today's #Vol411.
/jlne.ws/4aHIOI2
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