| June 21, 2021 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Avalanche of Options Trades Fuels Market Pullback; One measure of trading activity has reached its second-highest level on record
Gunjan Banerji and Anna Hirtenstein - WSJ
Heavy options activity is amplifying this week's frantic investor retreat from bets on stronger economic growth. The Dow Jones Industrial Average lost 3.4% for the week, its biggest decline in more than seven months. The S&P 500 dropped 1.3% Friday and finished its worst week since February. Lumber prices tumbled 15% this week and have nearly halved from their high in May. Gold and copper both posted their largest one-week percentage declines since March 2020.
/on.wsj.com/3d0DvHI
A $130 Million Crypto Quant Nets Big Returns as Options Boom
Justina Lee - Yahoo Finance
Forget Elon Musk tweets, regulatory missives and Bitcoin's energy consumption.
To hedge fund manager Shiliang Tang, the biggest crypto story this year is taking place in the shadows: An options market that's booming and shaking up digital-currency trading along the way.
At his $130 million fund LedgerPrime, filled with Wall Street converts from the likes of Virtu Financial Inc. and Cantor Fitzgerald LP, Tang is minting money trading derivatives on virtual tokens.
/yhoo.it/3j5Dvd0
Ethereum faces largest ever options expiry as bears appear to dominate
Investing.com
Ethereum faces largest ever options expiry as bears appear to dominate Ethereum faces largest ever options expiry as bears appear to dominate
Ether (ETH) faces its largest options expiry ever on June 25 as nearly $1.5 billion out of $3.3 billion notional open interest (OI) in ETH options will expire. June's expiry has over 638,000 ETH options contracts in its purview, accounting for 45% of the total open interest in these options.
/bit.ly/3gTYPzw
China launches crude oil options open to foreign traders
Reuters
China's first energy options open to foreign traders made their Shanghai International Energy Exchange (INE) debut on Monday with the new crude oil contract achieving only muted volumes.
/reut.rs/2SJpjvS
FX algos and auto-pricing on the rise as traders look to minimise market impact, says Bloomberg FXGO head; Bloomberg's Tod Van Name said algos, automation for NDFs and options pricing and trading grids have risen dramatically in the last year.
Annabel Smith - The Trade
FX algorithmic trading and automated pricing has surged in the last year as traders seek best execution and minimal market impact, according to the head of Bloomberg's FX electronic trading platform.
/bit.ly/3zzWx16
BlackRock's Philipp Hildebrand Sees `A Lot of Volatility' Ahead Amid Economic `Restart'
Bloomberg (Video)
Philipp Hildebrand, vice chairman at BlackRock, discusses the outlook for markets amid conflicting views on inflation and central bank policy. "I think we need to expect a lot of volatility around the data points because this is a restart, not a recovery," Hildebrand said on Bloomberg Television. "It's completely different. And because it's so different, and so sudden, we have a lot of bottlenecks in the supply chain. So take those two things together. We're going to have a lot of volatility."
/bloom.bg/3gJTwEb
FX Markets on Hair-Trigger After Dollar's Best Week in a Year
Masaki Kondo and Simon Flint - Bloomberg
After months of diminishing volatility that left the dollar almost immune to Federal Reserve talk and data surprises, the world's deepest and most liquid market is back to scrutinizing both -- and just in time for one of the busiest weeks of the year.
St. Louis Fed President James Bullard, Dallas Fed President Robert Kaplan and New York Fed President John Williams will speak on Monday before Chair Jerome Powell testifies to Congress on Tuesday. Friday will feature a reading on the central bank's favored inflation gauge, while in between, other regional Fed chiefs discuss the economy and monetary policy.
/bloom.bg/3gNdwVi
| | | | | | Regulation & Enforcement | | | SOFR alternatives remain on track despite regulatory warnings; Pointed criticism from FSOC has done little to dampen interest in credit-sensitive rates Risk.net montage
Helen Bartholomew - Risk.net
Banks and index providers still plan to offer a menu of Libor replacements for use in loans and derivatives contracts despite recent regulatory criticism of credit-sensitive alternatives to the secured overnight financing rate, or SOFR. Senior US supervisors railed against the use of credit-sensitive benchmarks in derivatives contracts at a June 11 meeting of the Financial Stability Oversight Council. Securities and Exchange Commission chair Gary Gensler was especially scathing about Bloomberg
/bit.ly/3zKXa7Y
| | | | | | Strategy | | | Bitcoin just flashed a widely followed technical sell signal called a 'death cross,' suggesting more downside ahead
Matthew Fox - Markets Insider
A closely followed technical sell signal was triggered in bitcoin over the weekend, suggesting there's more downside ahead for the popular cryptocurrency.
Over the weekend, bitcoin experienced a bearish "death cross," which occurs when the shorter-term 50-day moving average crosses below the longer-term 200-day moving average. The moving average crossover signal is widely followed by technical analysts and traders.
/bit.ly/3xGS1vQ
Should You Be Selling Options for Income or Not?
Schaeffer
Some of the most profitable and productive trading is accomplished through selling options for income. You can make money on the way up and on the way down, in any market. By selling options, you control all aspects of your capital, including risk outcomes on particular trades. However, it's critical to understand the amount of money you want to spend and as well as timing the best execution or liquidation of the contract.
/bit.ly/35E080f
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