 | August 13, 2021 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | ****JJL: Ed Tilly, chairman, president and CEO of Cboe Global Markets, has issued the following statement about the passing of Wayne Luthringshausen
"On behalf of all of us at Cboe, we extend our condolences to the Luthringshausen family and express sincere gratitude for Wayne's leadership in establishing the listed options industry in the U.S. Beyond his contributions to OCC and clearing, Wayne championed educational efforts to help investors understand the utility and benefits of options, paving the way for today's vibrant options industry. We mourn the loss of such a pioneering figure whose impact on the world goes far beyond the financial markets and options clearing."
Cboe will honor Luthringshausen with a moment of silence on its trading floor before the market open on Monday, August 16.
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****SC: Cboe Global Markets recently published a paper on its vision for "Targeted Equity Market Structure Improvement." A quick rundown of its recommendations shows it backs "modest" tick size reform; enhanced best execution; limit order protections; improved execution quality reports; and shortening the settlement cycle from T+2 to T+1. More details can be found here.
| | | | | | Lead Stories | | | Traders Pile Into Tail-Risk Bets That Fed Won't Hike at All
Stephen Spratt and Edward Bolingbroke - Bloomberg
Open interest on tail-risk hedge has jumped 700% in past week; Traders also purchasing options that target negative Libor
Treasury yields are rising amid optimism over the global recovery but there has been a run on Eurodollar options betting the Federal Reserve will opt not to raise interest rates at all. Traders this week have been busy snapping up Eurodollar call options on underlying March 2025 futures that target three-month Libor to fix below 0.5%. These pay off if markets price the Fed keeping its benchmark at its lower bound until then. Futures markets are currently anticipating Libor will rise to about 1.47% by the first quarter of 2025.
/bloom.bg/3fXgVRO
Yuan steadies ahead of Fed minutes and Beijing's policy signals
Reuters
China's yuan was largely flat against the dollar on Friday and looked set for a marginal weekly gain, as market participants awaited next week's Federal Reserve minutes and Beijing's policy signals for more clues on the currency's outlook. The Chinese yuan has been stable in recent weeks. Investors expect this to continue due to a strong trade surplus and their belief that authorities will try and minimise volatility in the currency as they try to broaden regulatory oversight of domestically oriented industries and trim leverage.
/reut.rs/37Cfl38
Delta Exchange Announces Options Based Enhanced Yield Strategies For BTC & ETH - As Passive Investors Look For New Investment Opportunities, Delta Exchange Brings Enhanced Yield Strategies To Portfolios
Delta Exchange via Mondovisione
Delta Exchange (https://delta.exchange/), a digital asset derivatives exchange, announced today the launch of its Enhanced Yield Product on BTC and ETH. These are structured products that employ Options strategies to generate passive income for investors. These products remove complexities of Option selling, margin-ing and risk management by automating these processes and allow passive investors to participate in high yield generating opportunities with clearly defined outcomes and risk tolerance.
/bit.ly/3CLDLWd
| | | | | | Exchanges | | | Remembering the Life and Legacy of Wayne Luthringshausen, OCC Founding President and CEO
OCC
OCC's Board of Directors, management and colleagues join the entire options community in honoring the life of Wayne Luthringshausen. Wayne is widely regarded as one of the founders of the U.S. listed options market. Starting in 1970, shortly before the creation and launch of the Chicago Board Options Exchange Clearing Corporation, Wayne was asked to lead the project to launch the clearing corporation and was soon appointed the company's first President and CEO.
/bit.ly/3AHounk
Cboe Statement on Passing of Wayne Luthringshausen
Cboe
CHICAGO - August 13, 2021 - Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today issued the following statement from Ed Tilly, Chairman, President and CEO of Cboe Global Markets, on the passing of Wayne Luthringshausen, retired chairman and CEO of the Options Clearing Corporation (OCC):
/bit.ly/37GwgkY
Will VIX Drop Below 16 Level? (video)
Tim Biggam - CBOE
Tim Biggam @Delta_Desk talks $VIX, $SKEW Index, $VVIX, and $VIX #Futures.
/bit.ly/3m0MTAd
Market for Underlying Security Used for Openings on MIAX Options, MIAX Pearl Options and MIAX Emerald Options for Symbol XXII Effective Monday, August 16, 2021
MIAX
TRADING ALERT, REGULATORY ALERT
22nd Century Group, Inc. ("XXII") will transfer primary listing from the NYSE American Exchange to the Nasdaq Capital Market ("NASDAQ") effective Monday, August 16, 2021.
MIAX Options, MIAX Pearl Options and MIAX Emerald Options will use NASDAQ as the "market for the underlying security" for the purpose of Openings on the Exchange.
/bit.ly/3m1YLlq
| | | | | | Strategy | | | Part 2: The Top 5 Mistakes Options Traders Make
Two former traders share what they'd tell their younger self about options trading
Patrick Martin, Managing Editor - Schaeffer's Investment Research
Earlier in the summer, on Schaeffer's Market Mashup, we profiled the most common mistakes options traders make. The roundtable featured Cboe Global Markets' Henry Schwartz, Senior Director, Head of Product Intelligence, and Robert Hocking, Senior Vice President, Head of Multi-Asset Solutions and Derivatives Strategy.
Part one discussed the lessons they'd give to their past self, each traders' top five mistakes they see options traders make. Now, in part two, they discuss the broader surge in market participation from retail traders, and how to further educate yourself.
/bit.ly/3m1ebqn
The ABC's of Options & a Couple of Simple Strategies
Daniel Laboe - Zacks
The world of investing & trading has been flipped on its head amid the pandemic, and the rise of the retail trader has brought with it a flood of freshman options traders looking to get rich quick. If you have ever scrolled through Reddit's r/wallstreetbets (WSB), you quickly understand the risks/rewards of trading options. It seems that there are just as many self-proclaimed "apes" posting gains of $100,000s as there are posting losses of the equivalent value.
/bit.ly/3xMKNGt
| | | | | | Education | | | The Importance of Understanding the Options Greeks
kschaeffer@sir-inc.com - Schaeffer
Options Greeks are one of many factors that are important to understand when trading options. The aptly named "Greeks," are measurements relative to risk named after Greek letters. The measurements indicate sensitivity related to movements in the price of an underlying component or security, time-value decay, and implied volatility.
/bit.ly/2VLmr35
| | | | | | Miscellaneous | | | These People Who Work From Home Have a Secret: They Have Two Jobs
Rachel Feintzeig - WSJ
They were bored. Or worried about layoffs. Or tired of working hard for a meager raise every year. They got another job offer.
Now they have a secret.
A small, dedicated group of white-collar workers, in industries from tech to banking to insurance, say they have found a way to double their pay: Work two full-time remote jobs, don't tell anyone and, for the most part, don't do too much work, either.
/on.wsj.com/3siSHWT
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