| August 15, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
|
| | | | Lead Stories | | | Wall Street's Favorite Options Trade Went Quiet During Market Mayhem
Lu Wang - Bloomberg
A surprising thing happened during the early August stock convulsions: The one corner of the market most suited to riding short-term moves fell unusually silent.
Trading of options with zero days to expiry, or 0DTE, slumped last Monday as the selloff swept global equities. About 1.1 million such contracts tied to the S&P 500 changed hands, roughly 30% below the one-month average, according to analytics firm SpotGamma.
/jlne.ws/3Msyg4Z
NYSE American Withdraws Proposal for Bitcoin ETF Options; Cboe withdrew and then re-filed its application to list options on spot Bitcoin ETFs, possibly indicating ongoing SEC engagement with the process.
Jalpa Bhavsar - The Crypto Times
NYSE American LLC has withdrawn its proposal to list and trade options on the Bitwise Bitcoin ETF and the Grayscale Bitcoin ETF, confirmed in a filing made on August 8, 2024.
The Bitwise ETF and the Grayscale Bitcoin ETF would have been able to list those options if the exchange had not already requested a regulation modification.
/jlne.ws/3yvi6EB
VIX tumbles and completes largest 7-day volatility drop in history
MSN
A continued downward move in volatility levels persisted on Thursday as Wall Street's benchmark averages (COMP:IND) (SP500) (DJI) climbed after the latest retail sales and jobless claims data. Furthermore, the drop in volatility levels now represent the largest 7-day volatility crash in history.
/jlne.ws/4cv5hbd
The ETF industry's shark-jumping moment; The Fed needs to jack up rates NOW
Robin Wigglesworth - Financial Times
What fresh hell is this?
"MIAMI, Aug. 15, 2024 (GLOBE NEWSWIRE) - Defiance ETFs is proud to unveil MSTX, the first single-stock long leveraged ETF for MicroStrategy. MSTX seeks to provide 175% long daily targeted exposure to MicroStrategy. Defiance's single-stock ETFs provide leveraged exposure to disruptive companies without the need for a margin account.
MicroStrategy, known for its visionary approach to data analytics and business intelligence, has emerged as a prominent player in the Bitcoin market. With a strategic focus on becoming one of the largest holders of Bitcoin, MicroStrategy has captured the attention of investors seeking leveraged exposure to Bitcoin. As of the end of Q1 2024, MicroStrategy held approximately 214,400 bitcoins with a market value of around $15.22 billion."
/jlne.ws/3AyY5xc
Summer market shock not quite over as investors brace for more turmoil
Naomi Rovnick - Reuters
Big investors are bracing for this summer's stock market rout to run into the autumn, fearing a broader wave of selling will follow the turmoil sparked by U.S. recession concerns and the Bank of Japan wrong-footing currency speculators.
The sudden reversal of crowded equity and foreign exchange trades that generated vicious feedback loops of price drops, volatility and hedge fund selling has eased, with world stocks almost 2% higher so far this week
/jlne.ws/46Sfcqa
Quants Are Poised to Unleash a Wave of Cash in Stock Market; After selling spree, calmer markets create opportunities; 'Longer horizon buying flows are huge': Nomura's McElligott
Natalia Kniazhevich - Bloomberg
The largest unwind in US equities since the Covid-19 pandemic is over, and now trend-following quant funds are ready to return to the stock market.
Over the past month, so-called systematic funds, which buy stocks based on market signals and volatility moves rather than company fundamentals, have sold the largest dollar-volume of equities in four years, according to Scott Rubner, global markets division managing director and tactical specialist at Goldman Sachs Group Inc.
/jlne.ws/4fIQuwj
BofA Survey Shows Traders Still Like Big Tech
Bloomberg Markets: The Close (Video)
The volatility in global financial markets hasn't derailed investor optimism around US technology behemoths or expectations of a soft economic landing, according to a global survey by Bank of America Corp. Jason Trennert, CEO of Strategas Research Partners, shares his thoughts on the markets and survey on "Bloomberg The Close."
/jlne.ws/4fKyWjs
Stocks Might Not Be Pricing In an Oil Spike
Paul R. La Monica - Barron's
Investors may be brushing off worries about an economic slowdown, but one strategist thinks that the market is being way too sanguine about another possible big risk for stocks ... the possibility of higher oil prices.
Charles Gave, founder of Gavekal Research, wrote in a report Thursday that the stock market is currently priced as if oil were at $50 a barrel. It's actually at about $78. But he notes that if you look at gold prices, which are near a record high of just below $2,500 an ounce, oil should be closer to $100 a barrel.
/jlne.ws/3WLkSh2
| | | | | | Exchanges | | | CBOE Stock Soars to All-Time High, Reaching $206.01
Investing.com
In a remarkable display of market confidence, CBOE Holdings Inc stock has soared to an all-time high, with shares hitting the $206.01 mark. This peak represents a significant milestone for the company, underscoring a period of robust performance and investor optimism. Over the past year, CBOE Holdings Inc has witnessed an impressive 37.49% increase in its stock value, a testament to the company's strategic initiatives and the strong demand for its financial exchange services. The all-time high figure is a clear indicator of the company's growing influence in the exchange industry and its ability to consistently generate shareholder value amidst a dynamic market landscape.
/jlne.ws/3X4cOZQ
| | | | | | Regulation & Enforcement | | | CFTC wants to transform enforcement work through AI and data 'marathon'; Ted Kaouk, the agency's chief AI and data officer, said the derivatives regulator is undergoing a "significant" overhaul of its oversight capabilities thanks to the emerging technology.
Matt Braken - Fedscoop
Few agency workers across the federal government are more closely and publicly associated with their area of expertise than Ted Kaouk is with data. A Naval Academy grad with a PhD in English from Maryland, Kaouk carved out that association during lengthy chief data officer stints with the Department of Agriculture and Office of Personnel Management, plus a three-and-a-half-year term as chair of the Federal CDO Council.
/jlne.ws/3AqbFD9
| | | | | | Strategy | | | Three Trade Ideas August 15th
tastytrade (Video)
Katie, Mike and Nick offer three of their options trade ideas in Amazon, Google, and Gold Futures. They explain why they are positioning themselves in these popular trading products, and they give you visual risk profiles to show what they want to happen with the assets.
/jlne.ws/4cu2jDC
History of Selling VIX Options
tastytrade (Video)
Tom Sosnoff and Tony Battista analyze VIX option selling since 2010, showing profitable but risky outcomes. While average premiums collected were positive, the worst-case scenarios during volatility spikes could result in losses over $6,000 per one-lot. They highlight the need for caution and alternatives like wide call spreads. Additionally, brief mentions of Tom's upcoming trips and amusing breakfast discussions were included. VIX trading, they conclude, is generally not advisable for retail investors.
/jlne.ws/3SQiYdU
| | | | | | Events | | | The FIA Operations Americas Division is hosting Washington Update 2024 on October 9 from 3:30 PM - 6:30 PM CT at the Union League Club in Chicago, 65 W. Jackson Blvd. Join FIA CEO Walt Lukken, FIA VP of US Government Relations Kyle Glenn, and Washington insider Jimmy Ryan, managing partner and co-founder of Avoq, for a discussion on the upcoming Presidential election and its impact on the regulatory landscape, crypto legislation, and the derivatives markets. There will be a networking reception immediately afterward with light hors d'oeuvres and drinks provided. There are fees associated with attending, and the event is closed to the press. For more information and to register, go here.~SR
| | | | | | Miscellaneous | | | Investors Timing the Market See Biggest Hit on Sector Funds; Moving money around in times of volatility has reduced average returns by double digits over the past 10 years, according to a new report.
Suzanne Woolley - Bloomberg
For investors, it's important to remember there's power in patience, even as markets churn. An average investor loses out on as much as 2.6% in annual gains by straying from a buy-and-hold strategy with certain US mutual funds and ETFs, according to a new Morningstar report.
/jlne.ws/3AnNXHI
| | | | | | | | | 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. |
|
|
