| June 25, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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Complete Interview: Chen Liang, the co-founder of Odds.Trade
JohnLothianNews.com
Complete Interview: JLN talks with Chen Liang, co-founder of Odds.Trade, a fintech company that develops tools for retail options traders that enable them to quickly generate options strategy ideas.
Watch the video »
| | | | | | Lead Stories | | | Nvidia's Latest Unwind Has Boiling Option Trades Fading
Jan-Patrick Barnert - Bloomberg
Nvidia Corp.'s correction has volumes in shares and options turning upside down.
The high options activity was often cited as one of the main reasons for the chipmaker's relentless climb: Market makers in the contracts had to constantly hedge their positions by trading the stock as it moved higher in what is called a gamma squeeze.
/jlne.ws/3VI2epw
Morgan Stanley shoots into FX options dealer top spot; Counterparty Radar: US mutual funds added $11.1 billion in new positions in Q1
Joe Parsons - Risk.net
Morgan Stanley increased its foreign exchange options notional with US mutual funds and exchange-traded funds more than fivefold during the first quarter of 2024, largely owing to significant trading with Franklin Templeton.
The US bank jumped from sixth to top in Q1, with a total FX options book value of $10.6 billion, up from just $1.9 billion in the previous quarter.
/jlne.ws/4eB2HCJ
Hedging China EV Makers Gets Pricey With Tariffs Looming; Li Auto, BYD, Geely options are expensive versus HSI contracts
Sangmi Cha - Bloomberg
Traders are preparing for more swings ahead for shares of Chinese electric-car makers as governments around the world plan new tariffs.
The cost of Li Auto Inc. options traded in Hong Kong is hovering around its highest level since February 2023 relative to the benchmark gauge of the city's stocks. On BYD Co., three-month implied volatility is elevated after hitting an almost one-year high versus the Hang Seng Index earlier in June, and Geely Automobile Holdings Ltd.'s is at one of its highest readings over the past year against the gauge, data compiled by Bloomberg show.
/jlne.ws/3zj2UdC
India's options trade faces a less lucrative reset
Shritama Bose - Reuters
India is moving to make stock trading less like a game. Officials are planning more stringent margin and disclosure rules in the country's equity derivatives market, which has become the world's largest by volume of trades. Tightening the screws should help protect small-time traders and pre-empt a wider bust, at the expense of slimmer winnings for trading firms like Jane Street and a new crop of discount brokers.
/jlne.ws/3ziJl56
Hedge Funds Made a Killing on FTX-Then It Got Complicated; Investors allege former FTX customers reneged on selling claims to their accounts and are suffering from seller's remorse
Caitlin McCabe, Alexander Saeedy and Jiyoung Sohn - The Wall Street Journal
The FTX bankruptcy was looking like a hedge-fund trade for the ages, set to make hundreds of millions of dollars for intrepid vulture investors. That was before things got messy. Hedge funds and other distressed investors rejoiced last month when bankruptcy managers said the corporate carcass of FTX, Sam Bankman-Fried's collapsed crypto exchange, had enough assets to more than make its creditors whole.
/jlne.ws/3XGKa1J
As critical elections loom, poll-based investing is a 'dangerous strategy,' chart shows
Christine Idzelis - MarketWatch
Investors should avoid "hasty" portfolio changes based on predictions for upcoming elections after recent political surprises in countries including France triggered market losses, according to Principal Asset Management's Seema Shah.
"Recent election surprises in Mexico, India, and the European Union have underscored the volatility that can arise from unforeseen political outcomes," Shah, chief global strategist at Principal, said in a note. "These events highlight the risks of relying on pre-election polls for investment decisions, as unexpected results can swiftly disrupt equity markets and currencies."
/jlne.ws/4cAMjQL
| | | | | | Exchanges | | | OCC Stories: Dare Okandeji on Finding Connection
OCC
When Dare Okandeji joined OCC in 2022, he wasn't sure where or how he fit into the organization's culture. However, with help from his colleagues and OCC's employee resources, he quickly found spaces where he felt connected and supported.
/jlne.ws/4eE2ajf
CME Group U.S. Credit Futures Exceed 400 Contracts in First Week of Trading
CME Group
CME Group, the world's leading derivatives marketplace, today announced that its new U.S. Credit futures have traded 415 contracts since their launch on June 17.
/jlne.ws/45CO7qh
| | | | | | Regulation & Enforcement | | | Ken Griffin's Data Leak Suit Against IRS Ends in Settlement
Sabrina Willmer and David Voreacos - Bloomberg
The US Internal Revenue Service agreed to settle a lawsuit brought by hedge fund manager Ken Griffin that accused the agency of failing to protect his confidential financial information from a contractor who stole his tax data and leaked it to ProPublica. Both parties on Monday filed to dismiss the case in Florida federal court. The case is being dismissed because the IRS and Citadel LP's founder reached an agreement to resolve the matter, according to a person familiar with the situation who asked not to be identified discussing confidential information.
/jlne.ws/3KWUHhB
| | | | | | Technology | | | Hidden Road Signs with Trading Technologies to Distribute TT Platform for Multi-Asset Trading
Trading Technologies
Trading Technologies International, Inc. (TT), a global capital markets technology platform provider, today announced that it has partnered with Hidden Road, the global credit network for institutions, through Hidden Road Partners CIV US LLC, its futures commission merchant regulated by the U.S. Commodity Futures Trading Commission (CFTC). The move will enable Hidden Road clients to utilize the TT platform for trading across a broad range of asset classes and products, including traditional cleared derivatives as well as digital assets. TT is the first independent platform Hidden Road has made available to clients for cleared derivatives.
/jlne.ws/3KZPGoy
Eurex Clearing also joins second wave of ECB trials on new technologies for settlement
Eurex
Eurex Clearing is actively participating in the second wave of the Eurosystem's exploratory work on new technologies for wholesale central bank digital money settlement. These trials aim to explore the potential of distributed ledger technology (DLT).
The ECB has now officially confirmed the Wave 2 stakeholders which include Eurex Clearing and other market participants along with DLT operators like Clearstream.
/jlne.ws/3xGwj0J
| | | | | | Strategy | | | Picking 0 DTE Strikes by Delta
tastytrade (Video)
It's not always easy to take the measure of a market, whether you've been trading for a day or a decade. On this segment we look under the hood-options probabilities, volatility, trading strategies, futures, you name it-so your trading mechanics are built to manage more winners.
/jlne.ws/3RKwuPr
Sideways
Cboe (Video)
Tim Biggam @delta_desk shares the $VIX Index put/call ratio so far today, the #VIX futures term structure and a broader market outlook in #Vol411.
/jlne.ws/3VxfPzS
| | | | | | Miscellaneous | | | What Works for Golf Works for Life; In the long run, consistency and skill tend to win out over luck.
Peter Coy - The New York Times
Rory McIlroy of Northern Ireland, one of the greatest golfers of his generation, suffered a crushing loss at the U.S. Open this month when he missed short putts on two of the last three holes. Please keep reading even if you don't give a bogey about golf, because I'm going explain how the strategies that make someone a better golfer can help in other parts of life, such as personal finances. It comes down to focusing on what really matters and avoiding dumb mistakes.
/jlne.ws/4ew6dyh
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