| May 01, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | The Options Clearing Corporation has issued its 2022 annual report. It is titled "Resilience in a Changing World." Another way to do the same thing is how EEX released its 2022 annual report. EEX has published a YouTube video about its "2022 Annual Results" featuring EEX CEO Peter Reitz. ~JJL
| | | | | | Lead Stories | | | Options traders remain wary of regional banks after First Republic rescue
Saqib Iqbal Ahmed and Laura Matthews - Reuters
The weekend rescue of troubled lender First Republic Bank (FRC.N) has done little to allay options traders' concerns about the overall health of U.S. regional banks.
The 30-day implied volatility on the SPDR S&P Regional Banking ETF - a measure of expected near-term price swings - was only about two points lower on Monday from the previous week, even after JPMorgan Chase & Co emerged as the winner of the weekend auction for First Republic Bank.
/jlne.ws/3HRisqz
What Happens to First Republic Options?
Gunjan Banerji - WSJ
Some options traders stand to win big from the failure of First Republic Bank.
Although shareholders are the last ones in line to be paid after the bank was seized by regulators, the continued drop in the bank's share price has already been good news for traders in put options tied to First Republic.
/jlne.ws/40WZ9CJ
Stagflation Is the Risk That Eludes Investors Mispricing Markets
Liz McCormick, Garfield Reynolds and Reade Pickert - Bloomberg
Financial markets are caught up in a tug of war between lingering inflation and concern about a recession as they try to guess the next move by the Federal Reserve. That means investors are potentially ignoring a far more dangerous outcome: stagflation.
/jlne.ws/3LHLr19
ETF April Volume Lowest Since 2020, Dragged by Trader 'Exhaustion'
Katherine Greifeld - Bloomberg
As stocks and bonds gyrate in well-defined ranges, the exchange traded-fund industry is sending a clear message: traders are tired.
US ETFs traded $2.1 trillion worth of shares in April, the lowest monthly total since August 2020 and roughly half of March's trading, Bloomberg Intelligence data show. The drop-off coincides with the Treasury market's quietest month in two years, while the S&P 500 remained locked in a range.
/jlne.ws/40VYfqa
Will the stock-market charge higher? Or will 2023 rally end in disaster? These factors could decide your portfolio's fate.
Joseph Adinolfi - MarketWatch
Are U.S. stock-market investors getting dangerously complacent? Or is the expectation-defying 2023 rally due to continue?
The answers to these questions could ultimately depend on a few key factors, like whether megacap technology stocks can continue driving the main indexes higher, or whether traders' expectations for calm have left U.S. stocks vulnerable for a surprise sucker punch as the Nasdaq Composite flirts with a 20% rise from its fourth-quarter low.
/jlne.ws/42g3i5G
Will First Republic's Failure and the Fed Meeting Spark Stock-Market Volatility?
Eric Wallerstein - WSJ
The S&P 500 just wrapped up its fourth-straight week of moves smaller than 1% in any direction. The collapse of First Republic Bank, another prospective interest-rate increase and a slate of major company earnings might finally send ripples through the stock marketâbut traders haven't expected things to be so calm since before the Federal Reserve began tightening policy.
/jlne.ws/3NrqKbY
| | | | | | Strategy | | | Options Traders Bet on Bond Rally Ahead of Fed Meeting
WSJ
Some options traders are positioning for a big rally in the Treasury market ahead of this week's Fed meeting.
Call options trading tied to the iShares 20 Plus Year Treasury Bond ETF hit its highest level of the year on Friday, Cboe Global Markets data show.
/jlne.ws/3oZLcGZ
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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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| | | Jeff Bergstrom
Editor
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