| March 28, 2024 | | | | | Jeff Bergstrom
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Term of the Week - Maturity, an Option's Lifetime
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| | | | | | Lead Stories | | | Trump Media Options Are So Costly Bill Gross Wants to Sell Them; 'Genius' can be investor with 'courage to sell' options: Gross; Cost to short DJT has skyrocketed to between 400% and 500%
Bailey Lipschultz, Carly Wanna, and Yiqin Shen - Bloomberg
Trading options tied to former president Donald Trump's media company is attracting meme-stock traders and Wall Street professionals. Add to that list erstwhile "Bond King" Bill Gross.
The eye-popping costs to flip derivatives betting on Trump Media & Technology Group Corp. given expectations for more wild swings was called out by Gross in a post on X.
/jlne.ws/3PFyKqk
Traders bet US election will unsettle market calm; Vix and VStoxx indices show expectations of volatility around prospective Biden-Trump rematch
George Steer - Financial Times
Stock traders have begun placing bets on an upsurge of volatility around November's US election, which is shaping up to feature a tense rematch between President Joe Biden and his predecessor Donald Trump. Futures contracts tied to the value of the Vix index - the so-called "fear gauge" that measures expectations of near-term swings in the S&P 500 equities benchmark - are pricing in a rise in market stress in the weeks before and after voters head to the polls.
/jlne.ws/3PKe7ZZ
BlackRock rolls out its first active equity ETFs in Europe; Launches are both high income products that use dividend-paying stocks and index call options
Sandra Heistruvers - Financial Times
BlackRock has rolled out two actively managed equity exchange traded funds for European investors.
The Ireland-domiciled iShares World Equity High Income and iShares U.S. Equity High Income Ucits ETFs, which have been listed in Frankfurt and Amsterdam, are the US fund giant's first ETFs aimed at investors in Europe that integrate an active, systematic strategy into the ETF wrapper.
/jlne.ws/43K3rk0
Bitcoin, Ether Could Witness Upside Volatility as $15B Options Expiry Looms
Dealer hedging could breed volatility at around $70,000, one observer said.
Omkar Godbole - CoinDesk
The impending quarterly expiry of bitcoin (BTC) and ether {{ETH} options contracts worth several billion dollars could breed bullish price volatility, according to observers.
On Friday at 08:00 UTC, Deribit, the world's leading cryptocurrency options exchange, will settle quarterly contracts worth $15.2 billion. Bitcoin options account for $9.5 billion or 62% of the total notional open interest due for settlement, while ether options comprise the rest.
/jlne.ws/4afgjAY
Invesco more than triples size of its FX options book; Counterparty Radar: Manager's portfolio exceeded $5 billion notional in Q4
Cole Lipsky - FX Markets
Invesco more than tripled the size of its foreign exchange options book during the fourth quarter of 2023, as it took several large positions in G10 and Latin American currencies.
/jlne.ws/3IZQsRD
The S&P 500 and Wall Street's 'fear gauge' are both up in 2024. Should investors be worried?; The Vix's recent climb is likely due to the mean-reverting nature of the index â rather than a sign that traders are bracing for a selloff, portfolio manager says
Joseph Adinolfi - MarketWatch
Something unusual happened in the stock market this quarter: Both the S&P 500 and Cboe Volatility Index, better known as the Vix, rose.
Does this mean the unusually tranquil stretch in markets is bound to end soon? Probably not, according to one portfolio manager.
/jlne.ws/3TzAum5
| | | | | | Exchanges | | | Abaxx Announces Closing of C$18,687,500 Bought Deal Financing Including Full Exercise of Over-Allotment Option
Abaxx
Abaxx Technologies Inc. (CBOE CA:ABXX) ("Abaxx" or the "Company"), a financial software and market infrastructure company, majority shareholder of Abaxx Singapore Pte Ltd., the owner of Abaxx Commodity Exchange and Clearinghouse (individually, "Abaxx Exchange" and "Abaxx Clearing"), and producer of the SmarterMarkets⢠Podcast, is pleased to announce that it has closed its previously announced bought deal financing (the "Offering"). The Company issued a total of 1,437,500 common shares (the "Common Shares") on a bought deal basis at an offering price of C$13.00 per Common Share (the "Offering Price"), which includes 187,500 Common Shares issued pursuant to the exercise of an over-allotment option, in full, for gross proceeds of C$18,687,500.
/jlne.ws/3x7Dbne
| | | | | | Strategy | | | Don't Buy Boeing Stock. How to Play It With Options Instead.
Steven M. Sears - Barron's
Because Boeing's situation is so abnormal, it is difficult to have confidence about anything the company does or says. That makes Boeing's first-quarter earnings reports, expected in late April, a tradable event.
/jlne.ws/3PI0oTD
Why It's So Hard to Know What Donald Trump's DJT Stock is Worth
James Mackintosh - The Wall Street Journal
How much is Donald Trump's Truth Social actually worth?
Forget financial analysis. Even finding out how many shares there are is a challenge, and usually reliable data for the closing market capitalization on Wednesday range from $2.46 billion to $13.55 billion. The truth isn't simple.
/jlne.ws/49eo9tk
This VIX Butterfly Spread has a 15 to 1 Reward to Risk Ratio
Gavin McMaster - Barchart
Market volatility remains subdued as measured by the CBOE Volatility (VIX) Index. VIX is a real-time index that represents the market expectation for near-term volatility in the S&P 500 index.
Investors and traders have long used VIX as a measure of the level of risk, fear or stress in the market.
Today, we're going to look at a long call butterfly using VIX options as a way to profit if volatility starts to rise next year.
/jlne.ws/3PFNtRT
Carnival Cruise
Cboe (Video)
In today's #Vol411, Scott Bauer touches on options activity in Carnival #CCL after earnings, how Q1 market performance stacks up historically, active #VIX options and the VIX futures term structure.
/jlne.ws/3vvAPy3
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