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JLN Options
July 20, 2022  
 
Jeff Bergstrom
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John Lothian News
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Lead Stories
 
Robinhood launches options trading in cash accounts for eligible investors
Liz Kiesche - Seeking Alpha
Robinhood Markets (NASDAQ:HOOD) is now offering options trading in cash accounts, one of its most requested features from its advanced customers, the company said Wednesday.
Robinhood (HOOD) shares are rising 3.8% in Wednesday late morning trading.
With a cash account, customers can only use deposited cash or settled funds to make trades, meaning that they're not subject to Finra limits on the number of trades made using a margin account.
/jlne.ws/3IUhU2d

Generation moonshot: why young investors are not ready to give up on risk; Even amid a meltdown in crypto markets, DIY traders who came of age after the financial crisis no longer want to play by the old rules
Madison Darbyshire - FT
With $1,000 in savings and two US government stimulus checks, Chris Zettler began investing in 2020. First he bought companies he knew, he says, "but then I got bored with it". He moved on to call options in companies with volatile share-prices, riding the price swings. He used a win to buy 100 shares in the meme stock AMC at $30 in May and sold at about $65 in June.
/jlne.ws/3RIGGqh

Retail Investors Pile into Currency Trading as Euro Slides to Parity With Dollar
Amateurs are diving into the risky world of foreign-exchange markets.
Paulina Cachero and Claire Ballentine - Bloomberg
Americans looking to capitalize on the unusually weak euro aren't just booking shopping trips to Europe: They're making risky bets on the currency market.
While foreign-exchange trading has historically been reserved for specialty desks on Wall Street, big swings in global currencies have enticed DIY traders into the complicated world of FX.
/jlne.ws/3OnN7fx

 
 
Exchanges
 
Nasdaq Reports Second Quarter 2022 Results; Continues Strong Growth in Solutions Segments Revenue; Nasdaq, Inc. (Nasdaq: NDAQ) today reported financial results for the second quarter of 2022.
NASDAQ
Second quarter 2022 net revenues increased 6% compared to the second quarter of 2021. Solutions segments2 revenues increased 10%, including 12% organic growth, partially offset by a negative 2% FX impact. Annualized Recurring Revenue (ARR)3 increased 9% compared to the second quarter of 2021. Annualized SaaS revenues increased 12% and represented 35% of ARR. Second quarter 2022 GAAP diluted earnings per share decreased 10% compared to the second quarter of 2021 primarily due to a gain on a divestiture in the prior year period.
https://bit.ly/3zhIcIE

Stake in Crypto Exchange Deribit Becomes Disputed Asset in Three Arrows Bankruptcy
Based on one estimate in a document passed around by creditors, the Deribit stake is worth as much as $500 million. But legal complications and the recent crypto market slump might make the stake worth significantly less.
Omkar Godbole - Coindesk
As Three Arrows Capital, the troubled crypto hedge fund, struggles through liquidation proceedings in the British Virgin Islands and bankruptcy-court hearings in New York, a behind-the-scenes drama is playing out over the value of a key asset: an indirect stake of nearly 17% in Deribit, the digital-asset industry's preeminent options exchange.
/jlne.ws/3PGuB2P

MCX Tells Amateur Traders To Exercise Caution, Stay Away From Options Trading
Neelanjit Das - Outlook India
Options trading is a high risk and high reward stock trading principle which exchanges are urging investors to use cautiously, as they may otherwise face deep losses. So what makes options so risky and what have the exchanges advised to investors?
The Multi Commodity Exchange (MCX) of India has cautioned investors against the high risks involved with options trading, and urged that those with limited knowledge should exercise caution and refrain from such trading activities, as they could otherwise face huge losses.
/jlne.ws/3J7K2PL

 
 
Regulation & Enforcement
 
Index futures, options to deepen capital market reform
Shi Jing - China Daily
Trading in stock index futures and options based on the small-cap tracker CSI 1000 is scheduled to start on Friday, which will better meet investors' need to hedge risks, besides deepening reform of China's capital market, experts said on Tuesday.
The China Securities Regulatory Commission said in an announcement on Monday that trading in the above derivatives will commence at the China Financial Futures Exchange on Friday.
/jlne.ws/3ogpScr

 
 
Strategy
 
A Quick And Easy Guide to Buying Debit Spreads
kschaeffer@sir-inc.com - via Nasdaq
Debit spreads are a great choice if you are looking for a versatile strategy to make money in directional and volatile markets.
With these strategies, you can use them in various situations and take advantage of their flexibility. However, before making money trading debit spreads, you must know how to set them up properly.
In this article, you'll discover how to set up your accounts for success.
/jlne.ws/3B5obGD

 
 
Miscellaneous
 
In Times of Stress, Female Fund Managers Take Less Risk Than Men — For the Same Performance; Fund investors don't receive compensation for the higher risk that male managers take on, according to new research.
Jessica Hamlin - Institutional Investor
Female fund managers tend to play it safe during periods of negative market sentiment, while male investors take on more risk. But in the end, their risk-adjusted performance is the same, according to new research.
Those are the findings of researchers who set out to determine the differences between the risk-taking of male and female portfolio managers when markets are under stress, which often presents good buying opportunities. The question is an important one as some of the best investors, those with the highest risk-adjusted, long-term returns, are contrarians who aren't afraid to put money to work during crises. Although academics have long studied the role of gender in retail investors' risk-taking behavior, far less research has been done on the behavior of individuals at institutions.
/jlne.ws/3yS3gEg

 
 
 
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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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John Lothian News Editorial Staff:
 
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Sarah Rudolph
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Jeff Bergstrom
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