| April 11, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Cboe, MIAX & OCC Release Trading Volumes; Tesla CEO's stake in Twitter Sparks Options Bets; Cboe Awards Scholarships
JohnLothianNews.com
"Alex Perry's Optionstopia" takes a look at this week's options news highlights: Cboe, MIAX & OCC Release Trading Volumes; Tesla CEO's stake in Twitter Sparks Options Bets; Cboe Awards Scholarships
TERM OF THE WEEK: Euronext presents "Options Term of the Week". American or European style.
Watch the video »
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ICE's Chris Edmonds Dishes on Risk, Messaging and Systemically Important Financial Institutions at Boca 2022
JohnLothianNews.com
ICE's Chris Edmonds took on an even bigger role at the exchange group in December when he was named chief development officer in addition to his role as head of clearing and risk for Intercontinental Exchange. He already had responsibility for six clearinghouses around the globe and was asked to add marketing and communications. But Edmonds made it sound like it all made sense; whether you are talking about the risk, marketing or communications, you should be getting a consistent message from the exchange.
Watch the video »
| | | | | | Lead Stories | | | Wall Street Might Not Be Such a Drag This Earnings Season
Telis Demos - WSJ
Like quarreling families, every volatile market is volatile in its own way.
Looking at a quarter's price and volume action, it can be hard to always forecast opportunities for profit available to Wall Street banks. Wall Street often talks about "good volatility" and "bad volatility," with the former being an opportunity to help clients do big new trades or deals, and the latter meaning clients retreat and revenue dries up. The latest quarter likely had some of both, but there are reasons to expect some positive surprises.
/jlne.ws/3xj3Jjn
Europe Market News: Stoxx 600 Drops on China Covid Spread, French Uncertainty
Nikos Chrysoloras - Bloomberg
European equities started the week on a negative note as investors weighed an array of risks, from China's Covid-19 flare up and an uncomfortably tight race for the French presidency, to surging bond yields and the war in Ukraine.
The Stoxx 600 Europe Index fell 0.6% at the close, tracking Asian stocks lower. Technology and consumer products shares were the biggest drag on the gauge, while banks and insurers outperformed on rising bond yields.
/jlne.ws/3uvEkBk
Macron Wins First Round of French Election. Why Stock Markets Should Be Worried.
Callum Keown - Barron's
President Emmanuel Macron beat far-right politician Marine Le Pen in the first round of France's presidential election, but the pair will face off in the final round later this month.
Macron received 28.2% of the estimated vote, while Le Pen won 22.9% and far-left candidate Jean-Luc Mélenchon secured 21.7%, The Wall Street Journal reported. Far-right former TV pundit Ãric Zemmour picked up 7.3%. As no candidate won more than 50%, the top twoâMacron and Le Penâwill move to a second round of voting.
/jlne.ws/38wUotY
Funds sell oil as economic weakness trumps sanctions
John Kemp - Reuters
Portfolio investors sold petroleum last week as a slowing economy in China and Europe and a massive release of strategic stocks by the United States outweighed concerns about the disruption of exports from Russia.
Hedge funds and other money managers sold the equivalent of 11 million barrels in the six most important petroleum-related futures and options contracts in the week to April 5.
/jlne.ws/3xi0etw
Funds' CBOT corn buying vastly underwhelms after low U.S. acreage
Karen Braun - Reuters
Chicago-traded corn futures surged after U.S. farmers reported they would plant significantly fewer acres this year than analysts predicted, but that did not have speculators adding much more length in the subsequent days.
Investors have been bullish toward corn since September 2020, and their recent optimism has rivaled some of their strongest within that period. Justification to maintain those positions came on March 31, when the U.S. government's acreage survey unexpectedly showed 2022 corn plantings would fall 4% on the year.
/jlne.ws/37866Ln
| | | | | | Exchanges | | | SGX Group reports market statistics for March 2022
SGX
Derivatives DAV hits two-year high on gains across multiple asset classes
Securities turnover rises as STI becomes Asia-Pacific's strongest performing stock benchmark
Singapore Exchange (SGX Group) today released its market statistics for March 2022. Gains in derivatives volume drove performance for the first three months of 2022. Securities turnover rose as Singapore's stock benchmark returned over 9% for the quarter, the strongest in Asia-Pacific.
/bit.ly/3jqQjtD
| | | | | | Regulation & Enforcement | | | FEX Global Suspension of ESPO Asian Crude (Argus) Futures and Options Contracts
FEX
The Board of Directors of FEX Global have determined to indefinitely suspend for trading all futures and options products referencing the ESPO Asian Crude (Argus) Benchmark. This suspension will come into effect after the close of today's trading session. A market notice has been published at 9.30am today AEST.
/bit.ly/3jqBBCV
U.S. money market funds say SEC draft rule would kill some products
Reuters
U.S. asset managers are pushing back on draft rules aimed at fixing systemic risks in the $5 trillion money market funds industry, arguing that one of the proposed measures would kill off popular products, executives told Reuters.
/jlne.ws/3LXtwly
| | | | | | Moves | | | Cboe Has Appointed Nigel Jeyakumar as Its New Director of Sales
Finance Magnates
Cboe has appointed Nigel Jeyakumar as its new director of EMEA sales. Nigel Jeyakumar will be located in London to lead the sales in Europe, Middle East and Africa (EMEA).
/jlne.ws/3JpKEi0
| | | | | | Strategy | | | Ultimate Guide to the Jade Lizard Options Strategy
Nasdaq
The jade lizard options strategy, invented by the original Lizard Trader, is a risk-defined, bull put credit spread. Using a spread of options with different strike prices but the same expiration date, the trader benefits from movement in the underlying asset price but does not have to worry about the direction or magnitude of that movement.
The strategy uses one put option with a higher strike price and two put options with a lower strike price. The three puts have the same expiration date. The net cost of this position is equal to the difference between the sold strikes minus the width of the call spread. The maximum profit potential is limited to this initial debit, while the full loss potential is zero. This strategy has no upside risk, meaning that you cannot lose more than your initial investment in this trade regardless of how high the stock moves.
This guide will discuss the Jade Lizard options strategy and how it can create profits and potentially provide safety for your account.
/jlne.ws/3usFBZZ
20 high-volatility stocks you might want to avoid in a hair-trigger market
Philip van Doorn - MarketWatch
Many technology stocks have gotten crushed in the high-inflation, rising-interest-rate environment of 2022. Some may have further to fall.
Investors with shorter-term horizons may wish to steer clear of more volatile, innovative companies, despite outperformance during the pandemic.
Those include 20 of the larger high-volatility names among the Russell 1000 Index are listed below.
/jlne.ws/3LXtf20
| | | | | | Education | | | Iron Condors: When, Why, and How to Use Them
Schaeffer's Investment Research
Generally speaking, volatility has been relatively high in the last decade. So when it comes to iron condors and other options strategies sensitive to volatility, we often see them trade at a discount. As volatility increases or decreases, the value of iron condor changes â sometimes significantly.
An iron condor is a strategy designed to have a substantial probability of earning a little profit when the underlying security is perceived to have low volatility. This means the investor doesn't have to view whether the market will go up or down; they only need to identify a range where they believe the stock price will be by the expiration of the options contract.
/jlne.ws/3O2fAIH
| | | | | | Miscellaneous | | | 'Ukraine Fatigue' Is Taking Over Markets, But This War Can't Be Ignored
John Authers - Bloomberg
Covid fatigue is now a widespread affliction. The pandemic has been a lead weight on our way of life for more than two years, and unsurprisingly people no longer want to talk about it. Most of us wish to get on with our lives as if the coronavirus has been vanquished, even though we know in our hearts that it hasn't. This is how Google Trends searches for Covid-19 have moved since March 2020, in the U.S. and worldwide:
/jlne.ws/3uwZzCZ
Risk Experts Ready to Meet Face-to-Face Again Despite a Volatile World
Richard Vanderford - WSJ
The two years since the advent of global, sweeping measures to combat the Covid-19 pandemic have been a watershed period for risk managers, who have had to help businesses navigate an array of complicated, overlapping challenges. As the impact of the recent Omicron variant wave wanes in North America, some businesses have begun to resume, if not normal operations, at least more in-person gatherings.
/jlne.ws/38Jy7JJ
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