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JLN Options
November 11, 2021  
 
Jeff Bergstrom
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Observations & Insight
 


FIA Expo 2021 Video: Ed Tilly Lays Out Cboe's Global Vision
JohnLothianNews.com

John Lothian News interviewed Ed Tilly, chairman, president and chief executive officer of Cboe Global Markets, at FIA Expo last week following a panel with other U.S. exchange leaders. Cboe is expanding across all geographies and asset classes, and its vision for global growth is providing access to all of its customers, Tilly said in the video interview.

Watch the video »

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FIA Expo 2021 Video: CFTC's Stump Corrects Misperceptions, Talks Politics
JohnLothianNews.com

CFTC Commissioner Dawn Stump rolled her eyes when asked who regulates cash cryptocurrency markets.

Speaking to John Lothian in a video interview following her keynote address last week at the FIA Expo, Stump said the question is "an unfortunate example" of what she sees as an ongoing mission to correct confusion over what agency regulates what entity.

Watch the video »

 
 
Lead Stories
 
Bulls creep back in to Tesla options after stock selloff
Saqib Iqbal Ahmed - Reuters
Bullish sentiment returned to Tesla Inc's options on Wednesday, as the stock swung between gains and losses following a sharp three-day selloff.
Tesla's shares fell 16% through Tuesday this week after Chief Executive Elon Musk took to Twitter here over the weekend to ask his followers if he should sell 10% of his stake in the company as Washington proposes to hike taxes for the super-wealthy. Nearly 58% said they would support such a sale.
/reut.rs/3c0OG1V

Meme Stock Mania Gave Options Trading a Spotlight. Barron's Took the Plunge.
Carleton English - Barron's
There's more to meme stock mania than retail investors simply buying shares of heavily shorted stocks.
In January, many of the traders who took part in the frenzy were able to boost their returns in names like GameStop (ticker: GME), AMC Entertainment (AMC), and BlackBerry (BB) by buying call options—essentially betting that shares in those companies would continue to rise.
/bit.ly/3quAlnc

U.S. Treasury Market Is Most Treacherous Since Pandemic's Onset
Alex Harris - Bloomberg
The U.S. Treasury market has become a minefield over the past month.
As bond traders around the world try to force central banks to respond to elevated inflation rates, unusually large price swings have taken their toll. Signs have emerged of a vicious cycle in which reluctance to participate in the market impairs liquidity, making large price swings even more likely.
/bloom.bg/30dCuJb

Hedge Fund 2-and-20 Fee Structure in SEC Chief's Crosshairs
Benjamin Bain - Bloomberg
Gary Gensler, whose resume includes a stint at Goldman Sachs Group Inc., says he's amazed that the hedge fund 2-and-20 fee model has prevailed in the decades since he left Wall Street. In his current gig leading the Securities and Exchange Commission, he's signaling he wants to change that.
The SEC chief said Wednesday that he's asked the regulator's staff to recommend ways to bolster transparency around how much hedge funds and private-equity firms charge their clients. He made clear that lowering fees is a top goal of the agency's review.
/bloom.bg/3quruBC

Credit Suisse's Xu Says 'Skew Is Askew Right Now'
Bloomberg (VIDEO)
Mandy Xu, chief equity derivatives strategist at Credit Suisse, examines skew and volatility in the equity market rally and whether she sees speculation in the derivatives market.
/bloom.bg/3kO5q1x

Global markets roiled by shock rise in US inflation; gold touches 5-month highs as investors seek havens
Amanda Cooper - Markets Insider
Global markets were roiled Thursday by a dramatic spike in US consumer inflation, which is running at its hottest pace in decade, throwing the interest rate outlook into doubt and boosting gold.
The US consumer price index - a key measure of nationwide inflation - gained 6.2% on a year-over-year basis, the fastest rate of annual inflation since 1990 and well above expectations for a 5.8% increase.
/bit.ly/3n7iAYR

 
 
Exchanges
 
Nasdaq Expands its European ESG Derivatives Offering with Options
Nasdaq
Nasdaq (Nasdaq: NDAQ) today announced the launch of options contracts on the OMX Stockholm 30 ESG index. With the new contracts, Nasdaq's ESG derivatives offering now includes both options and futures contracts based on the world´s first ESG benchmark index, which has grown into one of the most traded indexes in Europe since being launched in June 2018.
/bit.ly/3wDclz3

Nasdaq launches options on the OMX Stockholm 30 ESG Index
New options align with Nasdaq's objective to address the increasing demand for more sustainable investment solutions.
Wesley Bray - The Trade
Nasdaq has launched options contracts on the OMX Stockholm 30 ESG index, as it looks to expand its ESG derivatives offering.
/bit.ly/3qur9Pm

SGX reports market statistics for October 2021
SGX
Risk-management demand drives volume gains in equities, FX and commodities
Strong ETF market participation across retail and institutional client segments
Singapore Exchange (SGX) today released its market statistics for October 2021. Risk-management demand drove volume gains across multiple asset classes, as investors weighed global economic optimism against uncertainty over the pace of China's recovery.
/bit.ly/30h3iYF

Euronext announces volumes for October 2021
Euronext
Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris - 9 November 2021 - Euronext, the leading pan-European market infrastructure, today announced trading volumes for October 2021.
/bit.ly/3Dn37tz

OIR Interviews: Let's Talk About Nanos!
Options Insider Radio Interviews
On this episode we take a deep dive into an upcoming product that has caught the attention of many of our listeners. It's time to talk about Nanos!
What are they?
Why is Cboe bringing these to market now?
Do we really need an options contract with no multiplier?
How does Cboe plan to avoid a repeat of the mini options fiasco with Nanos?
Plus we also discuss the retail options tsunami, Cboe's return to the crypto market, the launch of BITO options and much more.
/bit.ly/3wBkOmv

 
 
Strategy
 
How to Ride Tesla Stock in a Greedy Options Market
Steven M. Sears - Barron's
Bulls make money. Bears make money. Pigs make more money.
Rather than getting slaughtered—the traditional fate of greedy investors—extraordinary gains have been flowing to those using call options to wager on rising stocks.
/bit.ly/30jtamM

Here's how to decide whether the S&P 500 is now heading toward a correction
Lawrence G. McMillan - MarketWatch
After a spectacular run by the S&P 500 index and other major benchmarks, a small decline has begun. Is it a tradable correction? Only time will tell, of course, but our indicators have weakened somewhat, so there is a reasonable chance that it is. It is worth remembering, however, that the period from Thanksgiving through the beginning of the new year is usually a seasonally bullish one, so the time for a correction is relatively small.
/on.mktw.net/3wD2lpA

 
 
Miscellaneous
 
Gen Z is committed to retirement investing --- and doesn't flinch when the market swings
Alessandra Malito - MarketWatch
Generation Z, the babies born between 1997 and 2012, aren't too young to start thinking about retirement, the latest Fidelity data show.
A record 1.4 million investors in this age group opened up accounts at Fidelity Investments, according to third quarter data from the firm — almost double the number of investors in this generation from the year before.
/on.mktw.net/2YC1FnM

Find a Better Job: Wall Street Offers 8-Figure Pay Packages to Woo Top Talent
Hannah Levitt - Bloomberg
The trading desk was just embarking on a second banner year when senior executives started defecting to the likes of Bank of America Corp., Citigroup Inc. and Millennium Management. By this fall, many of the team's heaviest hitters had gone.
The setting wasn't some struggling investment bank. It was the equity derivatives desk inside the mighty JPMorgan Chase & Co. -- one of many pockets of employee turnover that have erupted there in recent months, keeping the company's recruiters busy. Pan out, and it's part of a trend sweeping across Manhattan's financial industry.
/bloom.bg/3c0fcZq
 
 
 
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