| June 01, 2017 | | | |  | Spencer Doar
Associate Editor
John Lothian News | |
|
| | | | Observations & Insight | | | Getting Animated About Trading Chicago
JLN
If you haven't signed up for the FOW-JLN conference Trading Chicago on June 28th, it is a solid program worth checking out. Speakers this year include the Streetwise Professor Craig Pirrong, Leslie Sutphen and Gary DeWaal debating Dodd-Frank, Fidessa's Steve Grob, Chris Hehmeyer and Joshua Yang talking about our markets in an age of populism with Carl Gilmore. Other notables include Jay Feuerstein of Budo Group, Richard Mackey of Rosenthal Global Securities and Tim Gits of Eurex and Chris Anderson of Itiviti talking about opportunities in the red hot interest rate markets. There are more speakers to check out on the Agenda page
Tickets for CTAs, hedge funds, proprietary traders and asset managers are FREE. For a quick snapshot of the event, see our cool animation of Trading Chicago below. You can register directly HERE
But wait, there's more.
We will open up registration today for the Marketswiki Education events in New York on July 11 and 12, and our events in Chicago on July 17, 19 and 21. Every year it gets bigger. Every year we have great speakers who tell interns and young professionals about careers, trends and opportunities in the financial marketplace.
Details on the speakers are available on the www.marketswikieducation.com website.
If you have any questions, please contact us at events@johnlothian.com
Register below.
CHICAGO MWE SIGN UP
++++++
You're Invited to FOW-John Lothian News Trading Chicago on June 28th!
Register here
This one-day event at the Swissotel on June 28th is aimed largely at the end-users of the markets: commodity trading advisors, asset managers, hedge funds and proprietary traders.
The conference will cover the issues that impact those firms directly - regulation, technology and market structure, with an underlying thread of trading in an age of uncertainty. All of this will be delivered in a variety of formats, from an Oxford-style debate on the Dodd-Frank Act's repeal to TED-style talks to panel discussions.
The event is free to attend for CTAs, asset managers, props and hedge funds. For full conference information, click HERE.
Watch the preview »
++++++
| Sponsored Content |
Insight into the Bats Integration from CBOE's Lowenthal
Click here to watch
CBOE is in the middle of opening a new chapter in its 40-plus year history. In this video from the Options Industry Conference in Scottsdale, Ariz., Andy Lowenthal, senior vice president, head of global derivatives with CBOE, talks about the ongoing integration of Bats technology and what the tie-up means for the exchange.
Sponsored
content from: |  |
|
++++++
Inside Take on Bats' Technology at CBOE
JohnLothianNews.com
For the past three months, Kapil Rathi, senior vice president, options business development with CBOE, has had a firsthand look at the process of integrating Bats' technology with CBOE's. In this video filmed at the Options Industry Conference in Scottsdale, Ariz., Rathi discusses the potential of this new combined platform moving forward.
Read the rest and watch the video »
| | | | | | Lead Stories | | | The VIX Snoozefest Kept Rolling in May
Amrith Ramkumar - WSJ
It wasn't just your imagination: It was epically quiet in the markets last month. The CBOE Volatility Index posted its second-lowest monthly average ever in May, according to WSJ Market Data Group, finishing the month with a 10.86 average. That was lower than any other month besides November 2006, when it averaged 10.82. The so-called fear gauge, known as the VIX, ended the month at 10.41 Wednesday.
jlne.ws/2ssYdGa
****SD: Sell in May and go away? More like, "please, do something - anything - in May."
ETH Option Volume Continues to Grow
Kevin Davitt - CBOE Options Hub
May turned out to be CBOE's second highest volume month during the Exchange's Extended Trading Hours options session. Average daily volume during ETH in May was 11,763 contracts per day, surpassed only by November's 14,118 contracts per day. However, May's volume was much more consistent, as opposed to the November volume which was highly concentrated in a single trading day in the wake of the U.S. Presidential election.
jlne.ws/2ruMlXb
****SD: One reason given - "increased liquidity support from the London dealer community."
Stock market's low volatility and low yields are crushing Goldman, J.P. Morgan and the banking sector
Mark DeCambre - MarketWatch
Shares of some of the U.S.'s largest financial institutions are getting hammered Wednesday, led by a sharp drop in Goldman Sachs's stock, as bank executives were signaling a slump in second-quarter trading, pointing to the possibility of woeful revenue figures in the financial sector.
jlne.ws/2ruTirk
Wall Street Traders Crave Action. April and May Didn't Deliver
Hugh Son, Laura J Keller and Dakin Campbell - Bloomberg
Many crises could've erupted in the world during the second quarter, and then didn't. That's not necessarily good for Wall Street banks. Top executives at JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group Inc. are lamenting that there's too little happening in the world to spur investors to buy and sell. Yet at the same time, there's just enough uncertainty over geopolitics and U.S. tax reform to restrain corporate mergers and acquisitions.
jlne.ws/2ssVugh
Big Hedge Funds Are Using Options to Accumulate Positions
GuruFocus
A large number of hedge fund seeders and allocators - who are not as comfortable with options-centric strategies - may be unaware that the large funds they are invested in have positions in options-centric strategies.
jlne.ws/2ssFuuv
****SD: The story goes into one particular hedge fund that uses options but the key point is "Hedge fund seeders and allocators may be unaware the large funds they are invested in have positions in options-centric strategies."
June is Reconstruction Time for FTSE Russell Indexes
Russell Rhoads - CBOE Options Hub
When Memorial Day comes around most people start to think about their summer plans or how they are going to entertain their children until school starts back. Of course I'm not like most people and when we enter June my thoughts are all about the Russell Reconstitution process.
jlne.ws/2ruIHN2
Is Someone Manipulating the VIX? (VXX)
David Floyd - Investopedia
The CBOE Volatility Index (VIX) is often called the "fear gauge," because market watchers use it to measure expected volatility over the coming 30 days. According to a recent paper by John Griffin and Amin Shams of the University of Texas at Austin, however, the VIX may reflect something besides fear: the authors' findings suggest that traders have their finger on the scale.
jlne.ws/2rucZzr
****SD: In case you missed the news about the UT-Austin paper last week. The best explanation of the phenomenon described by the researchers came from Matt Levine in a Bloomberg View article after the initial release of the study.
| | | | | | Exchanges and Clearing | | | $266.49 Million in Sales Expected for CBOE Holdings, Inc (CBOE) This Quarter
American Banking and Market News
CBOE Holdings Wall Street analysts predict that CBOE Holdings, Inc (NASDAQ:CBOE) will announce $266.49 million in sales for the current fiscal quarter, according to Zacks Investment Research. Four analysts have provided estimates for CBOE Holdings' earnings, with the lowest sales estimate coming in at $265.80 million and the highest estimate coming in at $267.31 million. CBOE Holdings posted sales of $163.33 million during the same quarter last year, which suggests a positive year-over-year growth rate of 63.2%. The company is expected to issue its next quarterly earnings results on Friday, August 4th.
/goo.gl/ZfHaAC
Bloomberg approved as latest EMIR trade repository
Joe Parsons - The Trade
Bloomberg Trade Repository (BTRL) has become approved by the European Securities and Markets Authority (ESMA) as a reporting house for derivatives trades.
jlne.ws/2ruqfDY
Intercontinental Exchange Announces Agreement to Acquire Global Research Index Platform from Bank of America Merrill Lynch
Press Release - Intercontinental Exchange
Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced that it has entered into a definitive agreement to acquire the Global Research division's index platform from Bank of America Merrill Lynch. The BofAML indices are the second most used fixed income indices by assets under management (AUM) globally, and upon closing, the AUM benchmarked against the combined fixed income index business of ICE will be nearly $1 trillion. Upon closing, the indices will be re-branded as the ICE BofAML indices. The terms of the agreement were not disclosed, and the transaction is expected to be completed in the second half of 2017. The financial impact of the transaction is expected to be immaterial in 2017.
jlne.ws/2rupKdr
| | | | | | Strategy | | | Don't Fear The 'Fear Gauge'
Kenneth Rapoza - Forbes
Don't fear the 'fear gauge'! Rookie mistake. When the CBOE Volatility Index (VIX), which has been parked in the same place for months, starts going haywire on political noise or what-not, it's time to sell Europe and the U.S. and look here instead.
jlne.ws/2rulwCe
****SD: This story is actually about the relation between emerging markets and the VIX, but given the title it's easy to think "Oh man, not another one of these." (Barron's had a May 17 article with the same name.)
Buy the Market Dip Before the Dip Happens
Steven M. Sears - Barron's
Everywhere one turns, investors are fretting that the stock market rally can't last. Many are keeping cash on hand to buy a dip that never seems to materialize. Rather than waiting around, investors can create their own dips to buy.
jlne.ws/2rv1o2U
What This Never-Before-Seen VIX Signal Means for Stocks
Karee Venema - Schaeffer's Investment Research
The CBOE Volatility Index (VIX) hit 16.30 on May 18 - its highest intraday mark since Nov. 10, just after the U.S. presidential election. Last month's volatility spike was likely due to the combination of growing concerns over the Trump administration's ability to pass its legislative agenda, as well as the previous day's expiration of May VIX options. Despite this blip, though, it was the lowest average May VIX on record -- a signal that could bode well for stocks.
jlne.ws/2rv7PmB
Fang: FANG stocks: Use cheap calls to gear for upside - BAML
Reuters
Equity derivatives analysts at BofA Merrill Lynch recommend using options to leverage depressed volatility in FANG stocks to position for upside
jlne.ws/2ssRUCv
Worried about market risk? Wells Fargo suggests alternative funds
Ryan Vlastelica - MarketWatch
Looking for an alternative to stocks and bonds in your investment portfolio? Have you considered the investment category of alternatives?
jlne.ws/2ssCezw
****SD: Aka, have you considered a buy-write fund in your portfolio? Interesting how in the middle of backlash against the hedge fund world and its fees, hedge fund-like strategies are being appropriated by different corners of the market.
Swim Lessons: Three Key Elements to Consider in Your Options Strategy
Scott Connor - The Ticker Tape
In our daily Swim Lessons program, co-host Kevin Hincks and I look at all sorts of options trading strategies, and we consider scenarios under which a strategy might be a good trade candidate. Now, you might think that there's only one criterion that mattersÂ"winning"Â and though that's our ultimate goal, we like to focus on strategy parameters that are more likely to get us there in the long run. In general, we look for three key elements:
jlne.ws/2ssHUJx
Reach Max Acceleration with this Options Strategy
WallStreetDaily
As an options trader, I love volatility. Volatile periods marked by big swings in stocks provide traders with the fastest opportunities to book large profits. But when the sea of stocks calms after a highly volatile period, there's opportunity there, too.
jlne.ws/2ssUwAH
****SD: Part II on stock replacement strategies.
| | | | | | Miscellaneous | | | A $20B flip-of-the-bird to the SEC
Carleton English - New York Post
Steve Cohen is plotting a big comeback in 2018, and some of the hedgie's former clients are itching to invest again. The hedge fund billionaire behind Point72 Asset Management is planning to launch a new hedge fund early next year with a record-breaking $20 billion in assets, according to reports.
jlne.ws/2ruc1TP
****SD: Anybody see how an employee who dons the Mr. Met mascot costume for the New York Mets got canned for flipping some fans the bird?
| | | | |  | | | | JLN Options is sponsored by: | | | | | |  |  |  | | | | | |  |  |  | | |
|
|
| | | |
| | | | 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
Publisher | | | Jim Kharouf
Editor-in-Chief
| | | Sarah Rudolph
Managing Editor
| | | Jeff Bergstrom
Editor
| | | Lysiane Baudu
Editor
| | | Spencer Doar
Editor
| | |
|
|
 | |
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2017 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
