| June 13, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
|
| | | | Observations & Insight | | | EDITOR'S NOTE: We apologize for the delay in getting JLN Options to you today. There was a widespread AWS outage that affected our email sender (among many others).
++++
The OCC announced on LinkedIn that OCC's OCEO Awards program "recognizes colleagues who deliver significant, enterprise-wide contributions toward enhancing our resiliency or greatly improving a business process while demonstrating outstanding leadership and behaviors aligned with our values." The winners were Charles Briggs, Hima Kavali, Keisha Xicotencatl, Konstantin Baritko, Masoud Valizadeh, Naveen Ambati, Paul Jasper, Robin Burns, Sarah Good, Tim Burroughs, Tom Kephart, Wei L., Xiaolei Zhang and Yang Zhang.
++++
BOX Options CEO Patrick Zielinski talks with JLN about opportunities and risks in electronic trading
JohnLothianNews.com
JLN spoke with Patrick Zielinski, CEO at BOX Options Market, at the OIC Conference in Nashville in April. In a wide-ranging conversation, he discussed how he got his start in the markets, the interplay of floor trading with electronic trading, and the potential impact of an electronic trading tax in Chicago.
Watch the video »
| | | | | | Lead Stories | | | VIX just keeps getting harder to find. Low market volatility is music to stock investors.
Mark Hulbert - MarketWatch
Now is a good time for risk-averse investors to consider getting back into stocks.
That's because the CBOE Volatility Index recently dropped to its lowest level in more than three years. This suggests that U.S. stock market volatility is likely to remain low for at least a few more months.
/jlne.ws/45VZUQl
What Are Zero-Day Stock Options? Why Do They Matter?
Lu Wang - Bloomberg (via The Washington Post)
Stock options have always been a higher-risk, higher-reward tool for traders than stocks themselves. Now the field is being reshaped by a turbocharged new version: options with a shelf life so short they expire in less than a day. For institutional investors, "zero-day-to-expiry" options, or 0DTE for short, offer a way to hedge short-term risk and pursue strategies based on darting in and out of positions. For retail investors, they offer a way to make big bets with little money down that can pay off quickly â or not. A study published in March showed retail losses on trades in options tied to the S&P 500 Index almost doubled since the trend took off. Some market watchers also worry that 0DTE trading may be adding to volatility in the equities market or making its moves harder to predict.
/jlne.ws/43CJ1Z4
Hedge Funds Get Sucked Into Stock Rally Ahead of CPI, Fed Rate Decision
Lu Wang - Bloomberg
Big money managers are slashing bearish wagers and boosting equity exposure ahead of a week of potentially market-moving news.
Large speculators, mostly hedge funds, trimmed net short positions in S&P 500 e-mini futures from a record high, according to data from the Commodity Futures Trading Commission. The reduction of almost 90,000 contracts over the week through Tuesday ranks among the five biggest episodes of short covering since 2018.
/jlne.ws/43YZfeS
S&P 500 notches highest close in more than a year
Jaren Kerr and Daria Mosolova - Financial Times
US stocks advanced to their highest level in more than a year on Monday, with investors adding to a rally powered by shares of large tech companies.
The blue-chip S&P 500 increased 0.9 per cent to close at 4,338.93, surpassing a peak reached last August to mark its highest point since April 2022. The tech-heavy Nasdaq Composite index rose 1.5 per cent to a level that was also the highest in almost 14 months.
/jlne.ws/3qEIfMT
The Fed Is About to Make a Big Mistake, Mohamed El-Erian Warns
George Glover - Markets Insider
Investors should brace for the Federal Reserve to potentially make a mistake when its June meeting concludes on Wednesday, according to Mohamed El-Erian.
The top economist warned that "skipping" an interest-rate hike "could potentially be the least desirable" of three options available to the central bank, in a Financial Times op-ed published Monday.
/jlne.ws/3CpbbuT
Energy Transition: Trends in Derivatives Transactions
FIA (Video)
There are strong market imperatives for financial institutions and corporates to embrace the transition to cleaner energy sources. The Inflation Reduction Act, as well as other government policies, have also created strong incentives for the same.
How can market participants use derivatives transactions to pursue profitable opportunities and other potential benefits in this space? Join our friends from Jones Day for a brisk and informative discussion of this topic.
/jlne.ws/3oZpH9q
| | | | | | Exchanges | | | The next frontier: Cboe sets its sights on European derivatives with new equity options launch
Laurie McAughtry - MarketsMedia
Following its recent foray into global listings, the exchange is now switching its attention to growing its European derivatives exchange - with single stock options set to launch in Q4. BEST EXECUTION speaks to Cboe Europe president Natan Tiefenbrun and head of European derivatives Iouri Saroukhanov to learn more about "one of the biggest initiatives Cboe has undertaken in Europe for many years".
/jlne.ws/3Ja6Xe9
SGX Group reports market statistics for May 2023
Singapore Exchange Group
Active risk management and strong financial participation in iron ore bolster commodity derivatives volumes; Equity market activity buoyant; secondary fund-raising continues. Singapore Exchange (SGX Group) today released its market statistics for May 2023. Activity in the commodities and equities markets was buoyant versus April levels. Total derivatives traded volume in May was up 16% month-on-month (m-o-m) at 20.5 million contracts, while total securities market turnover value rose 23% m-o-m to reach S$23.0 billion.
/jlne.ws/3PaBKLR
Cboe Global Markets Announces Date of Second-Quarter 2023 Earnings Release and Conference Call
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, will announce its financial results for the second quarter of 2023 before the market opens on Friday, August 4, 2023. A conference call with remarks by the company's senior management will begin at 7:30 a.m. CT (8:30 a.m. ET).
/jlne.ws/3Jc4nVf
| | | | | | Regulation & Enforcement | | | Crypto-Friendly Congressmen Draft Bill to Reform SEC, Fire Gary Gensler
Andrew Throuvalas - DeCrypt
Following months of attacks against the crypto industry by the U.S. Securities and Exchange Commission (SEC), two Republican congressmen have decidedly had enough of the agency's chairman. "Today I filed the SEC Stabilization Act to restructure the SEC and fire Gary Gensler," announced Warren Davidson (R-OH) on Twitter Monday. "U.S. capital markets must be protected from a tyrannical Chairman, including the current one." Joining Davidson in creating the legislation is Rep. Tom Emmer (R-MN) - the crypto-supportive House Majority Whip who has repeatedly blasted Gensler for his "incompetence" in governing the crypto market and driving the industry overseas.
/jlne.ws/3p3vL0L
****** Maybe these Congressmen should worry about coming up with a crypto framework for the U.S. rather than worry about how Mr. Gensler applies current law to products that are clearly within the SEC's jurisdiction.~JJL
Naked Short Seller Gets in Trouble
Matt Levine - Bloomberg
"Naked short selling is an imaginary problem," I said last week, enraging apparently hundreds of very online investors in a now-private oil company called Next Bridge Hydrocarbons Inc. for reasons that are, I promise, not worth getting into. And so of course yesterday the US Securities and Exchange Commission brought a naked short selling enforcement action:
/jlne.ws/3P9Id9G
| | | | | | Strategy | | | Tesla-GM Pact Brings Volatility to EV-Charging Stocks
Al Root - Barron's
Investors still don't seem to know exactly what to do with electric vehicle-charging stocks.
Shares of ChargePoint Holdings (ticker: CHPT) and EVgo (EVGO) were both down more than 3% in early trading Monday. Later in the day, ChargePoint was up more than 5% and EVgo was down about 1%, while the S&P 500 was up 0.6%. The shares fell 13.2% and 11.7%, respectively, on Friday.
/jlne.ws/45YW9cL
Fed Expected to Pause
Cboe
In #Vol411, Tim Biggam @Delta_Desk has your #markets update as traders prepare for tomorrow's Fed rate decision - featuring OTM #VIX calls, VIX #futures term structure and the #SPX 15-day straddle. #OptionsTrading
/jlne.ws/3Piw3eG
| | | | | | Miscellaneous | | | Americans Say They Need $2.2 Million to Be Considered Wealthy; Feeling rich is more common among millennials and Gen Z, according to a new survey from Charles Schwab.
Claire Ballentine - Bloomberg
To be wealthy in America, you need at least $2.2 million. That's according to Charles Schwab's 2023 Modern Wealth Survey released Tuesday, which asked a nationally representative sample of Americans to estimate the average net worth required to reach the ranks of the rich.
/jlne.ws/3Pf9AQ1
****** Funny, that is not quoted in how many bitcoins they need to feel wealthy.~JJL
New York Office Occupancy Breaks 50% for First Time Since Pandemic Hit
Jo Constantz - Bloomberg
Offices in New York City crossed the 50% threshold last week for the first time since the Covid-19 pandemic eviscerated the local economy at the start of the outbreak. Building occupancies in the New York metro area hit 50.5% of pre-pandemic levels in the week ended Wednesday, June 7, according to data from security firm Kastle Systems, up 4.2 percentage points from the week before.
/jlne.ws/3XaIyLy
****** And then summer came and everyone left the city again.~JJL
| | | | | | | | | JLN Options is sponsored by: | | | | | | | | | | | | | | | | | | | |
|
|
| | | |
| | | | 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
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
| | | Asma Awass
Intern |
|
|
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2023 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
