| May 21, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
Randolf Roth Discusses Regulatory Challenges and Market Growth in JLN Industry Leader Series
JohnLothianNews.com
In a recent interview as part of the JLN Industry Leader Series at the Options Industry Conference sponsored by the OCC, Randolf Roth, executive member of the Eurex board, shared insights into the evolving cryptocurrency and derivatives markets, highlighting both regulatory challenges and market growth.
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Arnab Sen Discusses Institutionalization of Digital Asset Markets at FIA Conference
JohnLothianNews.com
Arnab Sen, co-founder and CEO at GFO-X, shared insights on the institutionalization of cryptocurrency trading during an interview for the JLN Industry Leader series sponsored by Wedbush at the FIA's International Futures Conference in Boca Raton, FL.
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| | | | | | Lead Stories | | | Nvidia earnings could spark $200 billion swing in shares, options show
Saqib Iqbal Ahmed - Reuters
Traders are pricing in a big move for Nvidia's shares after the chipmaker reports earnings on Wednesday, though expectations for volatility are more muted than in the past, U.S. options markets show.
Nvidia's options are primed for an 8.7% swing in either direction by Friday, according to data from options analytics firm Trade Alert. That would translate to a market cap swing of $200 billion - larger than the market capitalization for about 90% of S&P 500 companies.
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Ethereum price soars on spot ETF rumor â How are ETH options markets positioned?; Ethereum price soared to a two-month high at $3,700 today as analysts significantly boosted their expectation that a spot ETH ETF could be approved.
Marcel Pechman - CoinTelegraph
On May 20, the price of Ether surged over 18% after Eric Balchunas, a senior analyst at Bloomberg, raised the approval odds for the Ethereum exchange-traded fund (ETF) from 25% to 75%. Balchunas noted that the United States Securities and Exchange Commission (SEC) likely faced political pressure, as its previous position showed little engagement with ETF applicants.
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Ether price jumps ahead of SEC's ETF decision as speculation on approval rises
Frances Yue - MarketWatch
Ether's price jumped Monday afternoon, leading a rally for major cryptocurrencies three days before the U.S. Securities and Exchange Commission has to decide whether to approve VanEck's application for a spot ether exchange-traded fund.
The second-largest crypto ETHUSD by market capitalization had climbed 11.6% to around $3,434 at last check, according to data from CoinDesk. Ether has risen about 50% so far this year but is still underperforming bitcoin BTCUSD, which has seen a 66% gain this year to date.
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India's $6 Trillion Derivatives Frenzy Has Government Worried; Need to ask if options surge a sign of concern: CEA Nageswaran
Ashutosh Joshi - Bloomberg
The surge in Indian equity derivatives that's driven up volumes to the highest in the world is spurring concern among the nation's policymakers that the frenzy may hurt efforts to harness household savings for productive purposes.
Finance Minister Nirmala Sitharaman and Chief Economic Advisor V. Anantha Nageswaran sounded caution in recent days about growing retail participation in the equity futures and options market.
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'Dumb Money' Loses $13.1 Billion In Latest GameStop Stock Mania
Matt Krantz - Investor's Business Daily
It appears GameStop meme investors got suckered - again. Investors who jumped into the latest online frenzy over shares of the struggling video game retailer lost $13.1 billion in just three days from the mania's high, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. It's been a costly lesson for investors, some of which may have lost billions the last time on GameStop and other highly shorted stocks touted on social media.
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Goldman Says Equity Investors Bracing for Return of Volatility; Markets are pricing less risk of a sustained drawdown: GS; High market concentration raises risk of idiosyncratic moves
Sagarika Jaisinghani - Bloomberg
Stock investors are bracing for a spike in market volatility, and upcoming events such as Nvidia Corp.'s earnings report can exacerbate any moves, according to Goldman Sachs Group Inc. strategists.
The bank's measure of risk appetite hit the highest since 2021 last week, driven by optimism around economic growth and monetary policy, but momentum has slowed, the team led by Andrea Ferrario wrote in a note dated May 20.
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J.P. Morgan sticks to bearish view on stocks
Barbara Kollmeyer - MarketWatch
Wall Street strategists have been busy upping S&P 500 targets higher. Included this week so far was bearish Morgan Stanley's Mike Wilson. And that leaves one other big bear, J.P. Morgan strategist Marko Kolanovic, who is maintaining his stance.
In a note to clients on Monday, Kolanovic admitted that a "negative stance on equities has hurt the performance of our multiasset portfolio over the past year." The bank has partly made up for that via a commodities overweight and high cash and fixed-income yields, he said.
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| | | | | | Regulation & Enforcement | | | An Important Step for India's Margin Rules
ISDA
When Group-of-20 (G-20) leaders agreed an outline of the post-crisis regulatory framework in Pittsburgh in 2009, they were very clear that global standards should be implemented consistently in a way that ensures a level playing field and avoids fragmentation of markets. That has not always been the case in practice, but the Reserve Bank of India (RBI) recently finalized initial margin (IM) requirements for non-cleared derivatives that adhere closely to the spirit of that G-20 edict, enhancing the efficiency and competitiveness of the local market.
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'Groundhog Day' Trading Built Risk at Archegos, Witness Says; Risk head Scott Becker testifies about Hwang's 'corrupt core'; Goldman was told 'a good lie' about Archegos, Becker says
Bob Van Voris and Chris Dolmetsch - Bloomberg
Once Archegos Capital Management founder Bill Hwang decided on a trade, he did it again. And again. And again. Senior staffers reacted by greeting each other with "Happy Groundhog Day," a reference to the classic Bill Murray time-loop comedy.
That was the vivid picture of nonstop trading that Scott Becker, Archegos former chief risk officer, painted on the stand Monday in Manhattan federal court. He's one of the prosecution's star witnesses in the trial of Hwang and former Archegos chief financial officer Patrick Halligan.
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SEC contacted exchanges to update spot Ether ETF applications: Report; Officials reportedly contacted the Nasdaq, the Chicago Board Options Exchange and the New York Stock; Exchange to make updates and changes to existing spot Ether ETF applications.
Turner Wright - CoinTelegraph
The United States Securities and Exchange Commission (SEC) reportedly reached out to major U.S. exchanges to update their applications to list and trade spot Ether exchange-traded funds (ETFs) from asset managers.
According to a May 21 Reuters report, SEC officials contacted the Nasdaq, the Chicago Board Options Exchange (CBOE) and the New York Stock Exchange (NYSE) to update and change existing spot Ether ETF applications before a regulatory deadline. On May 23, the commission must decide whether to approve or deny VanEck's spot Ether ETF after delaying the process for 240 days.
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| | | | | | Strategy | | | Options traders increased bets on GameStop weeks before its price spiked, setting up for gains near 1,000%. Here's the strategy behind it and the probability of it happening again.
Laila Maidan - Business Insider
Meme stocks made a quick comeback in the second week of May thanks to a tweet on the 13th.
At first glance, Keith Gill's sketch of a seated gamer leaning forward doesn't seem related to anything in the stock market. But Gill's 2021 public analysis of GameStop (GME) became a focal point for retail investors who piled into the stock during the bull market that engulfed most of that year. Social media hype sent the stock spiking by almost 2,000% in 2021.
/jlne.ws/4bO1XYM
YieldMax Releases Gold Miners ETF With Options Strategy
Nick Wodeshick - ETF Trends
On Tuesday, YieldMax debuted the YieldMax Gold Miners Option Income Strategy ETF (GDXY).
GDXY is actively managed and has a net expense ratio of 0.99%. The fund aims to provide current income to investors.
In order to accomplish the fund's goals, GDXY utilizes a synthetic covered call strategy on the VanEck Gold Miners ETF (GDX). YieldMax notes that the fund does not directly invest in GDX.
/jlne.ws/4buKkxi
| | | | | | Miscellaneous | | | JPMorgan leaders shaping its strategy as succession comes into focus
Reuters
At JPMorgan Chase's investor day on Monday, shareholders will focus on the bank's growth strategy and succession plans.
CEO Jamie Dimon and President Daniel Pinto are among the key executives expected to be present.
Dimon has run the largest U.S. lender for more than 18 years, and his next steps have been the subject of speculation for years.
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