| October 25, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | VIX's Tandem Swings With S&P 500 Show Options Obsession Persists; Set for second-highest annual tally of paired moves since 2006; Thin positioning fuels chasing gains despite macro murkiness
Lu Wang - Bloomberg
Alongside all the other strange things happening in markets this year is the VIX's increasing propensity to move in the same direction of equities. It's a previously rare occurrence that happened again Monday. As the S&P 500 climbed more than 1%, the Cboe Volatility Index -- a gauge of options prices tied to the stock index that typically falls when anxiety among investors recedes -- also advanced.
/jlne.ws/3DtbV3l
Tesla Options Hint at Trouble Ahead With Bets Around $200; Puts with a $200 strike that expire on Friday are most traded; Option implies more than 5% downside from Monday's close
Elena Popina and Esha Dey - Bloomberg
Tesla Inc. was one of the biggest laggards in the S&P 500 Index on Monday, and options traders are betting the stock could drop further before the weekend. A put contract with a Friday expiration and a strike price of $200 was the most-traded contract for Tesla on Monday and among the 15-most popular on US exchanges overall during the day. The bearish option in the electric carmaker implies the stock has at least another 5% to fall this week.
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Wall Street Sinks Billions Into ETFs (BIL, TLT) on Both Ends of Yield Curve
Katherine Greifeld - Bloomberg
Wall Street divisions are growing on what's next for the beaten-up world of Treasuries as the Federal Reserve's aggressive tightening ramps up the risk of a recession by the day.
The latest sign: ETF investors are lavishing their billions on funds that track both the short- and the long-end of the yield curve.
/jlne.ws/3eW2NuQ
The surprisingly chilled bear market
Robin Wigglesworth - Financial Times
This year's bear market has been "epic" in depth and breadth. But aside from the mess in fixed income markets, it has also been remarkably orderly. Why has stock market volatility been so low?
It might not always be obvious, but in terms of both realised and implied volatility, the 2022 rout has been remarkably subdued. In other words, equity markets have deflated steadily like a balloon held in place, rather than a punctured one let loose to fly.
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Volatility Bets Cool As Fed, Earnings Fears Subside
Eric Wallerstein - WSJ
Traders' expectations for stock-market volatility are moderating as fears surrounding corporate earnings season and Federal Reserve policy-tightening ease.
Futures contracts tied to the Cboe Volatility Index, or VIX, are returning to more typical levels.
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| | | | | | Exchanges | | | Cboe Global Markets and SBI Holdings join forces to expand in Japan; The move will allow Cboe to increase its presence in the APAC region, while SBI will be able to benefit from Cboe's expertise in equities and digital assets.
Wesley Bray - The Trade
Cboe Global Markets and SBI Holdings have signed a Memorandum of Understanding (MoU) in which they agree to discuss collaboration opportunities in the areas of traditional and digital finance. Subject to any applicable regulatory approvals, the MoU lays the foundation for the potential exchange of resources in regard to planned joint business initiatives in equities, digital assets and other financial products and services.
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Cboe Global Markets and SBI Holdings, Inc. Sign Memorandum of Understanding
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, and SBI Holdings, Inc. ("SBI"), a pioneer of internet financial services in Japan, today announced the companies have signed a Memorandum of Understanding ("MoU") whereby they have agreed to discuss potential business collaboration opportunities in the areas of traditional and digital finance. The MoU between Cboe and SBI lays the foundation for the potential exchange of resources and information with respect to pursuing cooperation and planned joint business initiatives between the two firms in equities, digital assets, and other financial products and services, subject to any applicable regulatory approvals.
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TradersWorld Names OCC's Edward J. Modla the 'Best Options Educator' in 2022
The Options Industry Council (OIC)
Edward Modla, Executive Director, Investor Education at OCC has been selected as the winner of the 2022 TradersWorld FinTech Award, "Best Options Educator".
The TradersWorld FinTech Awards are a celebration of the companies and individuals in the FinTech industry responsible for driving innovation forward, developing new technologies, and providing traders and investors with the knowledge and tools they need to prosper.
/jlne.ws/3TXbhkc
| | | | | | Strategy | | | Everything Has a Season, Even Stocks. Why Right Now Could Be the Time to Buy.
Jacob Sonenshine - Barron's
The stock market has a history of making certain moves at certain times of the year.
Given how bad this year has been for stocks, what market insiders call "seasonality" wouldn't seem to matter that much. But it just might.
/jlne.ws/3D7Ks5R
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| | | Jeff Bergstrom
Editor
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