| October 28, 2021 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Traders Bet Tesla Stock's Rally Isn't Over Just Yet
Traders are using options to ride the momentum in Tesla shares
Gunjan Banerji - WSJ
Roughly one of every two dollars traders spent in the U.S.-listed options market on Monday and Tuesday went to Tesla options, according to Cboe Global Markets data. On Monday, traders spent more money on Tesla bets, in what's known as options premium, than they did on every single other option in the market combined. There are more than 5,000 stocks and exchange-traded funds to trade.
/on.wsj.com/2ZDK53h
Bullish bets on Tesla stock reportedly made up 50% of all options trades this week as investors cheer EV maker's surge to $1 trillion market cap
Carla Mozée - Markets Insider
Tesla stock has jumped 20% in less than a week, and investors are betting big in the options market that the rally can be sustained.
Traders in the US-listed options market spent about one of every two dollars on Tesla options on Monday and Tuesday, according to a Wall Street Journal report Thursday citing data from Cboe Global Markets.
/bit.ly/3jKVyVM
Traders bet ethereum will benefit from ETF boost in 2022
Eva Szalay - Financial Times
Traders are positioning for a surge in ethereum prices, betting that Wall Street's top securities regulator will next year give the go-ahead for a US exchange traded fund tracking the world's second-biggest cryptocurrency.
Pricing in options, tools that let investors bet on future movements in financial assets, suggest market participants are wagering that ethereum will more than treble to $15,000 by March next year.
/on.ft.com/3nBbrz9
Trillion-Dollar ESG Boom Rings Bubble-Trouble Alarm in New Study
Justina Lee - Bloomberg
The doing-well-by-doing-good conviction driving ESG investors around the world is nothing more than an illusion of their own making, according to a controversial new study.
Research from the Swiss Finance Institute argues stocks highly rated on environmental, social and governance metrics have outperformed in recent years all thanks to the trillions of dollars flooding the sector. The fundamentals of socially responsible investing have played no role in driving these returns.
/bloom.bg/3Br37qt
Traders Double Bets on ECB Rate Hike as Inflation Takes a Toll
James Hirai and Alexander Weber - Bloomberg
Traders are ramping up bets the European Central Bank will raise borrowing costs by the end of next year, adding pressure on policy makers as they gather for a rate decision on Thursday.
Money markets expect the central bank to raise the deposit facility rate by 20 basis points to minus 0.3% by December 2022, spurred by mounting inflation expectations. Wagers for tightening have doubled since Tuesday and defy policy makers' stance that consumer-price surges are temporary.
/bloom.bg/3Bo37Yj
Why currency volatility could make a comeback
The Economist
FOREIGN-EXCHANGE markets were once a hotbed of lively, speculative activity. But today traders seeking an adrenalin fix must turn to assets like cryptocurrencies instead. Barring a brief surge early in the pandemicâand isolated goings-on in the Turkish liraâcurrency markets have gone quiet. Macro-trading funds no longer strike fear into central bankers and finance ministries with speculative attacks. The last sudden end to a major currency pegâthat of the Swiss franc in 2015âwas a result of the central bank taking investors by surprise, rather than the other way round.
/econ.st/3bh4Rbj
| | | | | | Exchanges | | | Cboe Options Exchange to List Three Long-Dated SPX Options Expirations, Beginning November 1, 2021
Cboe Global Markets, Inc.
Additional LEAPS Options on S&P 500 Index offer expirations in December 2024, December 2025, December 2026; Aim; Optiver expected to serve as market maker, contribute to liquidity provision and client order flow
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced it plans to list additional LEAPS (Long-Term Equity AnticiPation Securities) options on the S&P 500 Index (SPX) that offer expiration dates in December 2024, December 2025 and December 2026, respectively, on Cboe Option Exchange, beginning November 1, 2021.
/bit.ly/3bgN1oI
Robinhood might have actually democratized finance, but it's killing Robinhood
Thorton McEnery - MarketWatch
As the company's founders have told the public over and over again for the last few years, the ultimate goal of Robinhood has always been to "democratize finance."
That lofty goal created a company that attracted more than 30 million users at its height, forced the brokerage industry to adapt to its zero-commission business model, and allowed it to go public at a $32 billion valuation.
/on.mktw.net/3pM5O3R
| | | | | | Regulation & Enforcement | | | Crypto Crackdown Is 'Tip of the Iceberg' as CFTC Seeks More Powers
Benjamin Bain - Bloomberg
Congress should consider expanding CFTC's authorities: Behnam; Derivatives regulator shares turf with SEC, bank regulators
The nominee to lead the U.S.'s top swaps regulator has a warning for lawmakers: Crypto misconduct the agency has already exposed is "the tip of the iceberg" and it likely needs more authority to police the white-hot market.
/bloom.bg/3nDZ7Oi
The SEC told Valkyrie to withdraw its leveraged bitcoin ETF application - a sign it won't tolerate that much risk for crypto investors
Shalini Nagarajan - Markets Insider
The Securities and Exchange Commission doesn't want to approve leveraged bitcoin exchange-traded funds, the Wall Street Journal reported Wednesday, citing a person familiar with the matter.
Going by an SEC request to at least one asset manager, it looks like the agency wants to restrict crypto investors to products providing unleveraged exposure, such as the ProShares Bitcoin Strategy ETF, according to the report.
/bit.ly/3jNBl1w
| | | | | | Technology | | | Cboe to Distribute Real-Time Data via AWS with Cboe Global Cloud
Cboe Global Markets, Inc.
In collaboration with Amazon Web Services (AWS), Cboe will launch a new real-time, cloud-based market data streaming service; Cboe Global Cloud aims to broaden access to Cboe data, while delivering efficiencies for customers; Real-time Cboe data will be directly accessible through AWS from multiple locations globally
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced the company is using Amazon Web Services, Inc. (AWS) to power Cboe Global Cloud - a new real-time, cloud-based market data streaming service that aims to optimize the efficiency and delivery of Cboe's data services for market participants globally, beginning November 1, 2021.
/bit.ly/3bmFKnr
| | | | | | Strategy | | | The S&P 500's recent run shows signs of tiring -- watch the breadth signals
Lawrence G. McMillan - MarketWatch
The S&P 500 index broke out above its previous highs this week, registering new all-time highs on three separate days.
However, the recent run has been so strong that the market SPX, 0.69% appears "tired" (breadth is weakening badly, for example), and some sell signals are already beginning to appear. The first support level on the S&P chart is in the 4520-4550 range. A close below 4520 would fill the first gap on the chart (there are still a lot of unfilled gaps) and would probably lead to further near-term weakness.
/on.mktw.net/315thT7
| | | | | | Education | | | The Institute for Financial Markets is offering an intensive course on the "Fundamentals of Futures & Options," held virtually on November 15-19 from 12 p.m. to 2 p.m. ET for five consecutive days. The IFM says the course and test study materials are suitable for Series 3 Exam candidates, who must demonstrate a basic proficiency standard to the NFA to become industry professionals. More details and information on course fees are here.
What Is Contago In The VIX?
Chris Vermeulen - Investing.com
I have been trading options and coaching / mentoring other new options traders for years. I have seen new traders who were lucky and ended up with some winning trades and others who were so frustrated and on the verge of giving up. I have seen it all. One of the things I have noticed is that very few people understand the CBOE Volatility Index, the fear gauge to the markets.
/bit.ly/3EmZ5kM
| | | | | | Events | | | iShares and Cboe Global Markets are hosting a webinar on Wednesday, November 10, at 2 p.m. ET on "Building a Sustainable Portfolio." Experts from iShares, S&P and Cboe will discuss how investors are using iShares' suite of ESG Screened ETFs, whose indexes are built off of flagship S&P indexes to eliminate controversial industries as they construct sustainable portfolios. Registration information is here.
Qontigo hosts a Quarterly Multi-Asset Risk Review of Q3 2021 on Wednesday, November 17, 2021 at 11:00 a.m. ET. The company notes that "persistently strong consumer-price growth and the anticipation of an accelerated monetary-policy response has led to both higher inflation expectations and bond yields, while stock markets seemed to have taken a breather."
Christoph Schon, Senior Principal, Applied Research, leads the discussion. Register here.
| | | | | | Miscellaneous | | | Workers Have Most Leverage They've Had in a Generation
Dominick Reuter - Business Insider
The US is facing an "Alice-in-Wonderland job market," in the words of Moody's chief economist Mark Zandi.
Job openings have never been higher, but unemployment is still highly elevated, and millions of discouraged workers have given up on looking for a job and retreated to the sidelines.
/bit.ly/3CkNZfw
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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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