| July 15, 2021 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
Tim Brennan Took the Leap to a New Frontier of Trading
JohnLothianNews.com
Tim Brennan did not know what he wanted to do after graduating from a small liberal arts college with a degree in psychology. As with many other traders from this era, his mom had a friend who could get him a job as a runner at the Chicago Board Options Exchange.
Watch the video »
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| | | | | | Lead Stories | | | ETF industry on track for record year as investor inflows reach $659bn
Michael Mackenzie and Chris Flood - Financial Times
Investors are pouring money into exchange traded funds at a historic pace as equity and corporate bond markets rally to new peaks and asset managers increasingly turn to the vehicles to build portfolios.
Flows into ETFs are already on track to outpace a record 2020, totalling $659bn in the first six months of 2021 compared with $767bn for all of last year, according to ETFGI.
/on.ft.com/3z2b0Sw
Stock market-timer McClellan on verge of swinging to bearish, as market looks 'pretty tired'
Tomi Kilgore - MarketWatch
Market-timer Tom McClellan, publisher of the "McClellan Market Report," said he will turn neutral on stocks for short- and intermediate-term trading styles after the closing bell, citing a "pretty tired looking stock market." McClellan, who has been bullish for all trading styles for weeks, said that while both his Annual Seasonal and Presidential Cycle patterns suggest a market top is due next week, he's concerned that the top "could arrive a few days early."
/on.mktw.net/3B1ARMd
AMC, GameStop Swing as Meme Stocks Run Out of Air
Anna Hirtenstein - WSJ
AMC Entertainment Holdings Inc. and GameStop Corp. swung wildly on Thursday, extending a bout of volatility that has delivered deep cuts to small investors this week.
Shares in AMC rose nearly 10%, erasing losses from earlier in the day, when it fell almost 6% in premarket trading. The stock has retreated over 20% so far this week, making it one of the biggest losers as a red-hot rally in meme stocks began to fizzle out. GameStop edged up less than 1% on Thursday, capping its loss for this week at almost 12%.
/on.wsj.com/2UiZzqC
| | | | | | Exchanges | | | Options Announces Access to Cboe Europe Derivatives
Press Release
Options, the leading provider of cloud-enabled managed services to the global capital markets, today announced it will facilitate access to Cboe Europe Derivatives, a new Amsterdam-based equity derivatives exchange being launched by Cboe later this year. This access will be available to clients in addition to Options' existing connectivity to Cboe's US and European equities markets.
/bwnews.pr/3em6IgX
MOEX To Launch Quarterly Options On US Stock Index Futures
Mondovisione
The underlying asset is a futures contract on shares of the SPDR S&P 500 ETF Trust, the world's largest ETF, which tracks the benchmark S&P 500 Index. The ETF has a net asset value (NAV) of USD 358 billion and includes shares of the 505 largest US companies by market capitalization.
/bit.ly/3hDBVOu
Cboe Benchmark Indices Series: Hedging Downside Exposure with PPUT, CLL and CLLZ Indices
Cboe
This article is part of our three-part series: "How to Utilize Cboe's S&P 500 Index Options Benchmark Indices," which highlights the hedging, income-generation and spread strategies investors may explore, with analysis of more than 35 years of data history of Cboe's benchmark indices.
While several stock indices hit numerous record highs this year and many market participants are bullishly confident, risk-averse investors are implementing hedging strategies in 2021. In fact, the Cboe SKEW Index (SKEWSM) recently reached an all-time high of 170.55, which is evidence of investor demand for hedging against big losses in S&P 500 portfolios.
/bit.ly/3z7B92p
Cboe Listings' Recent Milestones
Cboe
In a recent letter to customers, Laura Morrison, Senior Vice President, Global Head of Listings, highlighted Cboe Listings' latest accomplishments and reiterated the team's commitment to unmatched customer service and continued growth.
I am thrilled to share that Cboe Listings reached a new milestone of 500 U.S.-listed ETPs from more than 60 issuers. This is a notable step in our continued mission to deliver unmatched ETF service as the fastest growing ETP listings venue in the U.S. Thank you to our issuers who put your trust in Cboe. We are honored to help you achieve the highest potential for each and every one of your Cboe listings.
/bit.ly/3hHAkap
Equity Trader Alert #2021 - 53; Upcoming Enhancements to Order Functionality on Nasdaq, BX and PSX
NasdaqTrader.com
The Nasdaq Stock Market (Nasdaq), Nasdaq BX (BX) and Nasdaq PSX (PSX) will begin introducing performance improvements to the following order functionality it currently supports via INET FIX and RASH port order entry protocols (note: certain order functionality improvements are pending SEC approval or filing):
Reserves
Pegging (Primary, Market, Midpoint)
Market Maker Peg
Discretion
Trade Now
/bit.ly/3B0bzOm
| | | | | | Strategy | | | Investors Are Getting Scared. How to Use That to Your Advantage.
Steven M. Sears - Barron's
The current second-quarter earnings season feels like a game of Russian roulette. Each major company report has the potential to sway investor sentiment, which is already shaky. There's a sense a sea change has begunâone that could change the assumptions that have supported the stock market for the past 12 years.
Federal Reserve Chairman Jerome Powell recently told Congress that the central bank's easy-money policies were unlikely to change soon. Investors are adopting a trust-but-verify approach.
/bit.ly/3xHD6lO
Opinion: Stay bullish on the S&P 500 for now despite a number of red flags
Lawrence G. McMillan - MarketWatch
The S&P 500 Index has been making all-time highs nearly every day â 13 of the past 14 trading days, to be exact.
The Nasdaq indexes have done nearly as well. Even the Dow Jones Industrial Average, which was lagging behind, has now joined the party. However, the broader market â including many small-caps, as measured by the Russell 2000 Index and the iShares Russell 2000 ETF â is trailing by a wide margin. This lag in the small-caps is reflected in some of our other indicators, particularly breadth and put-call ratios.
/on.mktw.net/3wLpd4y
"Buy When You Can, Not When You Have To"
David Borun - Zacks, Nasdaq
In the current environment with stocks at or near recent highs, most investors are sitting on accumulated profits and may be wondering if there's an effective way to protect those gains if the seas ahead start to look rough.
As you might expect, options tend to get fairly expensive in implied volatility terms when big down moves appear possible, so simply buying puts on individual holdings or on the broad market ETFs will cost more if you wait until a broad market decline has already started.
/bit.ly/36HFVr7
| | | | | | Miscellaneous | | | Reddit Traders Are Upending the World of Credit Investing, Too
Eliza Ronalds-Hannon - Bloomberg
It was the type of master stroke that could make a Wall Street career. Jason Mudrick's financing of AMC Entertainment Holdings Inc. at the height of the pandemic netted his hedge fund hundreds of millions of dollars in just a few months.
Then, in the blink of an eye, it was gone. Options contracts meant to hedge the bullish wager went haywire as retail traders flocked to AMC's stock, pushing shares to once unimaginable heights and costing Mudrick Capital Management all of its gains -- and more.
/bloom.bg/2UQLEs0
Crypto derivatives exchange Bybit launches spot trading, including for XRP
Yogita Khatri - The Block
Bybit, one of the largest crypto futures exchanges, has entered the crypto spot trading market.
Bybit will also launch options trading "later this year," CEO Ben Zhou told The Block.
Bybit, one of the largest crypto derivatives exchanges based in Singapore, has expanded into the crypto spot trading market.
/bit.ly/3raK8wI
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| | | | 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
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