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JLN Options
June 05, 2020  
 
Matt Raebel
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Lead Stories
 
Nomura Says Cyclicals May Sink After Options Expiration Day
Joanna Ossinger - Bloomberg
Charlie McElligott often makes predictions about the behavior of stocks around options-expiration days. This month, his forecasts may have extra relevance given the attention to the value debate.
The Nomura Securities cross-asset strategist says that going into "quadruple witching" later this month -- the quarterly expiration of options and futures on indexes and equities that can often add to volatility -- cyclically sensitive stocks and assets may get a boost. The increasing number of strategists on the lookout for a potential rotation to cyclical and value shares may want to take note.
/bloom.bg/30e6Vwq

Bullishness Building in Bitcoin Options Market, Data Suggests
Omkar Godbole - Coindesk
Option market traders look to be placing bets for a continued upward move in bitcoin, according to a key metric. The put-call open interest ratio, which measures the number of put options open relative to call options, fell to 0.43 on Thursday - the lowest since March 24, according to crypto derivatives research firm Skew. The data takes into account open interest at leading derivatives exchanges Deribit, OKEx, CME, LedgerX and Bakkt. Notably, the ratio has declined sharply from 0.81 to 0.43 over the last four weeks.
/bit.ly/3gVpaMU

Bitcoin Options See 'Fast' Q2 Growth as CME Open Interest Tops $259M
William Suberg - CoinTelegraph
Bitcoin (BTC) derivatives interest is putting in "fast" growth this quarter — and CME Group is leading the way for options, new data shows.
According to monitoring resource Skew, the past weeks have seen CME dramatically increase its share of open interest for Bitcoin options.
/bit.ly/2Y5H0UP

Stock Day Traders Are Unleashing Most Bullish Bets in Nine Years
Yakob Peterseil - Bloomberg
Exuberance in American stocks is spurring speculators to unleash bullish bets in the options market at a rate unseen in almost a decade.
Trading in contracts that wager on single names to increase in value has surged to the highest since 2011, with a whopping 2.3 million calls changing hands on Thursday, according to Cboe data.
/bloom.bg/3h0kFAy

Navigating Market Volatility
RCM Alternatives
$VIX lovers/followers/haters/enthusiasts - this one's for you. In this episode, we're joined by a powerhouse group of volatility experts consisting of Kevin Davitt, Wayne Himelsein, Jason Buck, and Bastian Bolesta & Jeff Malec discussing Navigating Market Volatility. Providing more than just witty banter, you'll to these guys talk about how crazy volatility was during March/April, why the VIX is more than just for tail risk, is it too late for long volatility protection, why straddles & strangles, what everyone gets wrong about options, and the volatility landscape looking ahead.
/bit.ly/2Y0xjqK

 
 
Exchanges and Clearing
 
HKEX Enhances Product Offering with NetEase Debut
HKEX
NetEase Futures and Options to be introduced on 11 June; HKEX informed issuers they can list derivative warrants on NetEase shares when the shares debut on HKEX's securities market
NetEase shares to be included in Designated Securities Eligible for Short Selling on 11 June
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Friday) that it will offer investors more options on NetEase, Inc. (NetEase, stock code: 9999) shares on the debut date (11 June 2020).
/jlne.ws/2XxGHTM

Crypto Exchange OKEx Launches Ether Options, EOS Options to Follow
Adrian Zmudzinski - CoinTelegraph
Cryptocurrency exchange OKEx announced the launch of Ether (ETH) options contracts on its trading platform.
According to a June 4 announcement, following today's launch of ETH options, OKEx will also launch EOS options contracts on June 18. The firm also announced that it placed 1,000 ETH in the ETH Options insurance fund to prevent clawback.
/bit.ly/3gYjHFa

Eurex Exchange Readiness Newsflash | Reminder regarding Eurex Circular 027/20 "Money market futures/options and ETF futures/options: Change of the partition ID and/or multicast addresses with effect from 13 July 2020"; Eurex Exchange Readiness Newsflash
Eurex
In this newsflash we would like to draw your special attention to Eurex circular 027/20 "Money market futures/options and ETF futures/options: Change of the partition ID and/or multicast addresses with effect from 13 July 2020".
/bit.ly/2XZQ7q6

 
 
Regulation & Enforcement
 
Notice of Summary Action # CME-RSRH-20-5808 Effective Date 04 June 2020
CME Group
/bit.ly/375Mm6G

 
 
 
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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.
 
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