| July 15, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Complete Interview: Bill Brodsky talks options history, innovations and strategy with JLN's Alex Teng
JohnLothianNews.com
In this video for The Spread, Alex Teng spoke with Bill Brodsky, an industry giant who led both the Chicago Mercantile Exchange and the Chicago Board Options Exchange (Cboe) during his long career.
Brodsky talked about growing up in New York City and following his father's footsteps to Wall Street, where he became enamored of the stock market, and then buying a seat on the Cboe for $10,000 before it even opened. Eventually, a headhunter from Chicago asked him to run the CME - then called "the Merc" and he moved to Chicago and learned about futures. He later ran the Cboe for 16 years as CEO and then for several years as chairman.
Watch the video »
| | | | | | Lead Stories | | | A $1.9 Trillion Options Expiration Is Crucial Moment for Stock Hedgers
Lu Wang - Bloomberg
As if another inflation shock and earnings drama at big banks weren't enough for stock investors, Friday brings a critical moment where many option traders must decide their next move on hedging.
About $1.9 trillion of options are set to expire, obliging investors to either roll over existing positions or start new ones. The monthly event includes $925 billion of S&P 500-linked contracts and $395 billion of derivatives across single stocks scheduled to run out, Goldman Sachs Group Inc. estimates.
/jlne.ws/3AQkggA
Crypto Trading Volume Tumbled in June to the Lowest Since 2020; Spot trading volumes across all centralized coins drop 27.5%; Retail investors likely waiting for first leg up again: TIAA
Enrique Roces - Bloomberg
Cryptocurrency trading volumes have plummeted amid a dreadful first half of the year for the industry. Spot and derivatives volumes have declined across exchanges, falling more than 15% since May to around $4.2 trillion and reaching the lowest since January of last year. The month of June alone saw spot volumes drop nearly 28% to $1.41 trillion as Bitcoin tumbled, the lowest since December 2020, according to data compiled by CryptoCompare.
/jlne.ws/3uRInYr
Oil Pares Weekly Loss With No US-Saudi Oil Announcement Expected
Julia Fanzeres and Alex Longley - Bloomberg
Oil clawed back some of its weekly decline, with President Joe Biden's trip to Saudi Arabia set to yield no announcement on oil.
West Texas Intermediate rose to trade above $98 a barrel, capping another hugely volatile week of trading, which saw prices at one point wipe out all of their gains since Russia invaded Ukraine.
/jlne.ws/3IIC8Mv
Worrisome Inflation Reading Weighs Heavy on Earnings-Packed Week
Lillian Currens - Schaeffer's Investment Research
It was a relatively dismal week on Wall Street, as July marched on and investors scrambled to find some sort of footing amid the daily deluge of recession fears and and a global economic slowdown. On Monday, the major indexes logged quiet losses as many focused their attentions on the weekend's Twitter (TWTR) drama, and the social media company's lawsuit after Elon Musk announced the termination of his $44 billion buyout deal. Tuesday saw similarly shaky trading while traders dumped riskier assets and looked ahead to the start of another earnings season and several key economic indicators.
/jlne.ws/3PsxW5y
| | | | | | Exchanges | | | Eurex Quarterly Equity News Q2/2022; Single Stock Futures show strong growth in Q2; Market wrap-up
Eurex
Based on the high volatility in equity and interest rate markets in the course of Q2, the focus of investors was rather on benchmark index and interest rate derivatives compared to single stock underlyings. We observed less activity nearly across all country segments on a quarter-to-quarter basis compared to last year. The Swiss and Austrian segment showed slight growth in terms of traded contracts. On a single name comparison the financial segment was again in the lead with Credit Suisse, Deutsche Bank, Commerzbank, UBS, Crédit Agricole and Zurich Insurance Group within the top 10 most traded single equity options. In contrary to the options segment, the single stock futures segment, beside the French and Italian underlyings, showed strong growth numbers across all country segments.
/bit.ly/3IHXklz
Future regulation of EU clearing discussed at FIA Forum Frankfurt
Kirsten Hyde - FIA
FIA returned to Frankfurt on 12 July where the industry and regulators gathered to discuss the key issues impacting listed and cleared derivatives market participants.
In the opening remarks, Robbert Booij, Europe chief executive for ABN Amro Clearing Bank, stressed that the relationship between markets and regulators has never been more important.
/jlne.ws/3cmxQhL
| | | | | | Regulation & Enforcement | | | CFTC Adds 34 Illegal FX and Binary Options Platforms to the RED List
Arnab Shome - Finance Magnates
The United States Commodity Futures Trading Commission (CFTC) has added 34 new names of unregistered platforms to its Registration Deficient List (RED List) that are illegally offering financial services in the country.
/jlne.ws/3ATk8gd
| | | | | | Strategy | | | How to Short Bitcoin with Options
TheStreet
(~BTCUSD) has been on a massive downward spiral following its November 2021 all-time high. The leading cryptocurrency is currently down more than 70% since then.
According to a recent survey, the majority of investors believe there's more downside for BTC ahead.
/jlne.ws/3O7RomZ
Volatility ETFs Remain Relatively Subdued as Stocks Appear Stable
Max Chen - ETF Trends
Despite the ongoing uncertainty, equity declines have been orderly with no real extreme market moves as reflected by the CBOE Volatility Index and VIX-related exchange traded funds.
Year-to-date, the iPath Series B S&P 500 VIX Short Term Futures ETN (VXX) increased 20.9% and the ProShares VIX Short-Term Futures ETF (VIXY) advanced 14.1%. Meanwhile, the CBOE Volatility Index is now hovering around the 26.3 level.
/jlne.ws/3Oc2reM
| | | | | | Education | | | Trading Vertical Options Versus Trading Straddles and Strangles
Nasdaq
If you're new to options trading, you might be confused by the many terms, such as vertical options, straddles, and strangles. The following article will introduce you to each type and explain why each benefits your trading strategies.
Then, find out which is the best strategy for you!
Listed below are some of the most important differences between these three strategies. You should choose one of these depending on your investment style. Also, you'll learn to use puts and calls to go long or short and assess your risk profile.
/jlne.ws/3ccECGB
How Inflation ETFs Operate
Nasdaq
Wednesday's CPI print of 9.1% of inflation year-over-year in June is the highest since 1981 and marks the second month in a row where prices rose faster than forecasters expected.
Stubborn and strong inflation figures have gripped the global economy in the past several months, inevitably drawing attention to a small set of ETFs specifically aiming to profit off runaway prices. The 15 U.S.-listed ETFs with the word "inflation" in their names have brought in a net $356 million in assets in the first half of the year. Those figures exclude TIPS-only funds with inflation in their names but don't specifically aim to generate returns in an inflationary environment.
/jlne.ws/3IOE5H5
| | | | | | Miscellaneous | | | Inflation Is Even Worse If You Measure It the Proper Way
Justin Fox - Bloomberg
As you may have heard, the US inflation rate is 9.1%. That is, the consumer price index for all items as estimated for June by the Bureau of Labor Statistics was 9.1% higher than it was a year earlier.
Other economic indicators generally aren't measured this way. With retail sales it's the percentage change from one month to the next that gets the headlines. With employment it's the monthly change in the number of jobs. With gross domestic product, in the US at least, it's the annualized quarterly change .
/jlne.ws/3IGOiVQ
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