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JLN Options
April 20, 2022  
 
Jeff Bergstrom
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Lead Stories
 
Cboe Europe Derivatives To Launch New Equity Index Products
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced the planned launch of new equity index futures and options products for trading on Cboe Europe Derivatives (CEDX), its Amsterdam-based equity derivatives exchange. Futures and options will be launched on four additional Cboe Europe single country index benchmarks: the Cboe Italy 40, Cboe Norway 25, Cboe Spain 35 and Cboe Sweden 30. These eight new products are planned to be made available for trading on CEDX starting Wednesday, 27 April, with clearing provided by EuroCCP, Cboe's pan-European clearing house.
/jlne.ws/3KW5eId

Commodity prices are going haywire, prompting fears of the next financial crisis
Chris Matthews - MarketWatch
The prices of commodities including oil, wheat and palladium have surged this year as much of the global economy shakes off COVID restrictions and as Russia's invasion of Ukraine has led to a key commodity-exporting region to be cut off from the the rest of the world. This volatility has not only helped fuel levels of inflation not seen in 40 years —market observers are warning that it could put the stability of the global economy at risk unless regulators and central banks wake up to the threats posed.
/jlne.ws/3JR2FpG

U.S. Natural Gas Prices Are Fueling Inflation, and There's No Relief in Sight
Gerson Freitas Jr - Bloomberg
U.S. natural gas is on a tear. Prices have almost doubled this year to the highest since the shale revolution more than a decade ago, driving up energy costs and helping fuel the fastest inflation in 40 years.
Yet the gas market, once considered a yawn among traders because of its predictability, could be setting the stage for a even wilder rally over the next few months, triggering bets on prices that would have seemed unimaginably high just a few months ago.
/jlne.ws/3keCHCl

Hot Data Save Stock Bulls Wake Up From the Nightmare of a Dying Economy
Vildana Hajric - Bloomberg
The list of worries hasn't really changed: Inflation, war in Ukraine, Covid-19. But something in investors' psyches did on Tuesday when stocks posted their best day in more than a month.
Fueling the rally has been string of unexpectedly sturdy economic data, undermining arguments that a recession is at hand. Housing starts came in better than forecast, while other recent reports have given solace to bulls. Hiring remains robust and applications for unemployment benefits are near historic lows. High-frequency data show consumers are out in droves shopping and dining again.
/jlne.ws/3v1PRsy

Le Pen Upset Would Be as Big a Shock to Markets as Brexit
Bloomberg
All the polls show French President Emmanuel Macron is likely to win a second term Sunday. But from Citigroup Inc. to asset manager Amundi SA, the warnings are piling up that markets are underestimating the risk of a surprise.
/jlne.ws/3EEoB6r

 
 
Exchanges
 
Chicago Board Options Exchange Files Trademark for NFT & Crypto Services
Aaron Limbu - Blockchain News
The Chicago Board Options Exchange (CBOE Exchange, Inc. (CBOE)) has filed for a trademark application for CBOE DIGITAL for a non-fungible token (NFT) trademark, attorney Michael Kondoudis announced through a tweet.
/jlne.ws/3EAPx71

 
 
Regulation & Enforcement
 
IMF Says LME Governance Needs Strengthening After Nickel Fiasco
Archie Hunter - Bloomberg
The International Monetary Fund said the London Metal Exchange's governance systems need to be strengthened after a massive short squeeze that left the world's main nickel market suspended for six days last month and billions of dollars of trades canceled. The LME has been criticized by investors for its handling of the crisis, when prices surged by 250% in less than two days in a squeeze centered around Chinese nickel and stainless steel producer Tsingshan Holding Group Co. The IMF highlighted the nickel-market chaos as part of wider risks in commodity markets and lessons for policy makers in the wake of recent extreme volatility.
/jlne.ws/3rz9PZd

 
 
Strategy
 
An Options Strategy That Uses Volatility to Your Advantage
Steven M. Sears - Barron's
Spring has arrived, but it still feels like winter on Wall Street.
Stock prices have been chilled by inflation, fears of a shrinking economy, and the specter of rising rates. The Cboe Volatility Index, or VIX, is nervously transfixed as if the bond market's recessionary messages might be true.
/jlne.ws/387pHLY

Options Trading Strategy for Earnings Season: Goldman Sachs
Marley Jay - Business Insider
First-quarter earnings will get going over the next few days, and that means investors will have one more thing to pay attention to in a market that's already nervous.
But Goldman Sachs Vice President for Derivatives Research Vishal Vivek says that investors who stay patient and keep their fear under control are going to be in great shape. He says investors have slashed their allocations to stocks in order to minimize risk, but earnings reports could quickly convince them to change their minds.
/jlne.ws/3K0tHLe

 
 
Miscellaneous
 
A Bond Hedge Crushes All Rival ETFs to Post 57% Gain
Katherine Greifeld - Bloomberg
As the bond-market storm intensifies this month, Wall Street traders can find shelter in at least one corner of the $7 trillion U.S. ETF marketplace.
While inflation is igniting big losses across Treasury products of all stripes, the $256 million Simplify Interest Rate Hedge exchange-traded fund (ticker PFIX) is living up to its label with a 57% gain so far this year. It's the best performance among all non-leveraged U.S. fixed-income ETFs, according to data compiled by Bloomberg.
/jlne.ws/3JUjNLn

Crypto Stocks Perform Worse Than Cryptocurrencies
Paul Vigna - WSJ
The picks and shovels of the cryptocurrency world have been a worse bet lately than cryptocurrencies themselves.
The cryptocurrency market has been in selloff mode recently even as hundreds of millions of people now trade bitcoin, ether and other digital assets. Bitcoin is down 11% this year. Ether is down 16%. As of Monday, the entire crypto market had fallen about 19%, though prices were off their year lows, according to data from CoinMarketCap.
/jlne.ws/3977D51
 
 
 
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