| June 25, 2021 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Ethereum Options Expiry Explained: Experts on Impact, Price Forecasts
Vicky Ge Huang and Laila Maidan - Business Insider
Traders' eyes are glued to their screens on Friday as $1.5 billion worth of ether options is expiring today.
Given ether's initial 16% plunge and then 56% surge within three weeks after its March 26 expiry, some are calling the latest expiry a make-or-break moment for bulls and bears.
/bit.ly/2U5BRh3
Bitcoin in Recovery Mode Ahead of Options Expiry
Bitcoin is recovering from a volatile shakeout. Options expiry has large open interest around $40K.
Damanick Dantes, Frances Yue - Coindesk
Bitcoin traded higher after holding support around $32,000 on Thursday. Bearish sentiment is starting to wane as buyers fuel a relief rally from Tuesday's shakeout low of around $29,000. The cryptocurrency is up about 4% over the past 24 hours, but is still down about 8% over the past seven days.
/bit.ly/2T4qSo0
Wall Street Binges on Volatility Hedges as Stocks Hit Records
Yakob Peterseil - Bloomberg
U.S. stocks at fresh records belie new warnings under the surface of Wall Street's volatility complex.
In the aftermath of last week's Federal Reserve meeting, options traders are bidding up the price of contracts that guard against market drops, fueling a metric known as skew.
One such measure is trading near the highest in over a year, tracking the relative cost of hedging against a one standard-deviation drop in the S&P 500.
/bloom.bg/3gXQpZ6
This Reopening Is Moving Very Fast. J.P. Morgan's Research Chief Unpacks the Trends.
Leslie P. Norton - Barron's
The speed at which the world is changing is wreaking havoc with a typical investor's long-term planning. Luckily, Joyce Chang, one of Wall Street's ablest analysts and most experienced observers, was able to unpack key trends for us and what they mean for the markets. The upshot: expect continued gains for stocks and oil. Don't expect a supercycle for the latter, though. An edited version of our conversation follows.
/bit.ly/3vYOU1f
Will Fed tapering concerns derail the rising stock market? 'Investors should look past it,' says one strategist.
Christine Idzelis - MarketWatch
The stock market appears to be brushing off fears over inflation and the hawkish tilt from the Federal Reserve coming out of its recent policy meeting.
"What equity investors care about is whether the Fed is ahead, behind or on the curve," Barclays analysts said in a research report Thursday. "The Fed's more hawkish-than-expected stance towards inflation has largely removed the threat of runaway inflation and reminded equity investors that it is on top of the situation."
/on.mktw.net/3gTDt6M
Why an ETF May Change the Index It Tracksâand How to Tell if That's Good or Bad
Evie Liu - Barron's
Do you know what your ETF owns? Are you sure?
Investors in two exchange-traded funds have found themselves owning different sets of stocks this week. On Monday, the $10.4 billion iShares Biotechnology (ticker: IBB) and $6.6 billion iShares Semiconductor (SOXX)âthe largest ETFs in each of their respective industriesâchanged their underlying Nasdaq indexes to a different pair from Intercontinental Exchange. The biotech fund swapped about 30 of its 280 holdings, replacing some pharmaceutical companies with tools and diagnostics firms; the semiconductor fund changed six of its 30 holdings and now owns more foreign stocks.
/bit.ly/3vW3Kph
Stock-market confidence makes a comeback with VIX at 16-month low
Capital.com
A key gauge of expected swings in US equities has slid to a 16-month low, signalling a return of confidence after last week's selloff that was fuelled by the fear of higher interest rates.
The CBOE Volatility Index, or VIX, slid to 14.2% on Thursday, the lowest level since February 2020, suggesting that investor confidence is returning to pre-pandemic levels. A low VIX typically implies less market uncertainty and volatility, and often reflects improved economic confidence.
/bit.ly/3da1WT5
| | | | | | Exchanges | | | Viewpoint - FIA Tech grows up
Walt Lukken, FIA President and CEO
June is the month when millions of young people graduate and enter the next phase of their lives. Earlier this month, I attended my oldest son's high school graduation, and the experience filled me with both pride and trepidation. Watching this young man grow up has been the pride of my life. While I am sad he's leaving home (he's off to Boston College in the fall), I know that big things await him and that his growth requires us to let him go off in the world.
I thought about this graduation analogy when FIA announced a major milestone in the development of FIA Tech, our subsidiary that provides technology services to the listed derivatives industry.
/bit.ly/3j7MY3P
*****JJL: FIA Tech got some big boy pants.
Amendments to and Delisting of Certain CME and CBOT Products in Connection with the Elimination of Most CME and All CBOT Open Outcry Trading Pits and Related Frequently Asked Questions for Members and Member Firms
CME Group
(SER 8788R supersedes SER 8788 dated June 11, 2021 to advise that the Exchange has determined to withdraw the action regarding the elimination of the open outcry trading venue for Options on One-Month SOFR Futures and Options on Three-Month SOFR Futures at this time. The related Frequently Asked Questions further below has been modified accordingly. No other changes have been made to the original SER or related FAQ.)
/bit.ly/2T8dC1R
Eurex Clearing named 'Best Market Infrastructure Operator'
Eurex
Best Execution and The DESK have launched the European Markets Choice Awards to recognise excellence in the financial sector. The nominations are generated by the industry, for the industry. At a virtual award ceremony on 24 June 2021, Eurex Clearing was named Best Market Infrastructure Operator for its "adaptive and conservatively calibrated margin model, as well as its willingness to learn from the crisis. Even before last year's market volatility, many in the market had considered the clearer's Prisma margin framework better than the industry standard."
/bit.ly/3h9qnB6
Cboe Europe chief Howson on how London may just keep its finance hub crown
The City is trying to reinvent itself amid the loss of a clear post-Brexit determination
Penny Sukhraj - Financial News
Brexit is putting pressures on the City but there may be opportunities ahead for the capital, says Cboe's president for Europe, David Howson.
"As an international hub, I don't think it's lost its place," Howson told Financial News in an interview.
"It's well-placed more generally if you look at the legal frameworks, the taxation, talent pool and so on. The UK remains as amenable as they were on being open for business and looking to ink those trade deals that are in the best interests of the UK," Howson said.
/bit.ly/3qDaHL3
| | | | | | Strategy | | | Investors Wager This Stock Rally Won't Last
Gunjan Banerji - WSJ
U.S. stocks are flying high, with the S&P 500 and Nasdaq Composite on track to notch fresh records. Some investors are betting the recent rally won't last.
Investors have increased bearish bets on some of the biggest exchange-traded funds tracking stocks and bonds after the Federal Reserve's two-day policy meeting. They've increased short positions on the SPDR S&P 500 ETF Trust, known as SPY, and ETFs tracking bonds.
/on.wsj.com/3wZNncx
OB 1007: Getting Slaughtered By Death Trap Puts (podcast)
Option Block
HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: ANDREW GIOVINAZZI, THE OPTION PIT
CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT
/bit.ly/3xYbQ2b
| | | | | | Education | | | Former Traders Debate the Biggest Mistakes Options Traders Make
Two former traders share what they'd tell their younger self about options trading
Patrick Martin, Managing Editor - Schaeffer's Investment Research
Last week on Schaeffer's Market Mashup is back, Cboe Global Markets' Henry Schwartz, Senior Director, Head of Product Intelligence, and Robert Hocking, Senior Vice President, Head of Multi-Asset Solutions and Derivatives Strategy, stopped by to discuss the biggest mistakes options traders make when starting out. They discussed the lessons they'd give to their past self, top five mistakes he sees options traders make (4, the broader surge in market participation from retail traders, and how to further educate yourself.
/bit.ly/2T6GYxx
| | | | | | Miscellaneous | | | Chicago Board of Options Exchange Headquarters Named Architizer A+ Finalist
CannonDesign
The project is specifically one of five finalists in the Architecture + Ceilings category. Anyone can create or log-in to their Architizer account between now and Friday, June 25 to vote for the project and in any other Architizer+ awards category.
Cboe's dynamic new 185,000 sf headquarters, located in the historic Chicago Old Post Office, is an energetic workplace occupying four floors within two unique buildings with world-class features and amenities. The vibrant environment reflects Cboe's dynamic culture and is infused with commissioned artwork, unique branding, custom furniture, screens and lighting to enrich the experience.
/bit.ly/2T6zVEX
Crypto Firms Fight for Top Talent With Hundreds of Openings
Kwan Wei Kevin Tan, Joanna Ossinger and Chanyaporn Chanjaroen - Bloomberg
Booming cryptocurrency firms say they're struggling to find the right candidates to fill hundreds of positions as a frenzy of interest in digital currencies and other assets pits them against some of the world's biggest financial institutions.
Despite a rout in May, cryptocurrencies' total market value is up 400% over the past year to about $1.4 trillion, and traditional financial firms such as Goldman Sachs Group Inc., Bank of New York Mellon Corp. and DBS Group Holdings Ltd. are starting to offer services and trading. Meanwhile, the likes of CME Group Inc. are expanding crypto derivatives offerings -- all of which is helping the asset class to mature.
/bloom.bg/3jg9XtA
Accused Fraudster Tapped Firm Account for Strip Club Visit
Breanna T Bradham and Chris Dolmetsch - Bloomberg
A San Diego investor on trial for financial fraud told a jury he used a company account that mixed investors' money with his own to pay for trips to a strip club and casinos, but denied doing anything illegal.
Donald Blakstad took the witness stand in a Manhattan court and said he used an account for his company -- Midcontinental Petroleum -- for personal and business expenses because there is a lien on his accounts for unpaid taxes. The personal expenses also included the purchase of a Bentley.
/bloom.bg/3wWEb8J
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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
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
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