| July 21, 2022 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
The Spread: Options Discovery Episode 4: Institutional and retail options trading; interview with Chen Liang of Odds.Trade
JohnLothianNews.com
In this episode of Options Discovery, Alex Teng goes over institutional vs. retail options trading and the advantages and disadvantages for both. He also interviews Chen Liang, the co-founder of Odds.Trade, who talks about generating insight from data models and how he developed tools designed for entry level retail traders. Retail trading has doubled during the pandemic and has been growing steadily since, and retail traders want tools for analytics and visualization in their toolbox that will help them with a variety of options strategies, Liang says.
Watch the video »
Complete Interview: Chen Liang, the co-founder of Odds.Trade
JohnLothianNews.com
Complete Interview: JLN talks with Chen Liang, co-founder of Odds.Trade, a fintech company that develops tools for retail options traders that enable them to quickly generate options strategy ideas.
Watch the video »
| | | | | | Lead Stories | | | Yuan Shorts Gather Pace on Lockdown Threat, Property-Sector Risk
Bloomberg News
China's yuan is under pressure to depreciate as rising Covid cases add to concern over renewed lockdowns, while expectations of aggressive interest-rate hikes by the Federal Reserve boost outflows.
Option traders have increased bearish wagers on the currency as indicated by one-month dollar-yuan risk reversals, which have nearly tripled since the start of July. The cost of shorting the yuan -- as measured by offshore yuan tomorrow-next forward points -- remains near the lowest since 2020.
/jlne.ws/3olIA2E
Sucden Financial Purchases Atlantic Trading for STIR Market Making
Sucden Financial
Sucden Financial, the multi-asset execution, clearing and liquidity provider, has purchased the trading, IT and IP assets of Atlantic Trading London Limited, a proprietary market-making derivatives trading house. Atlantic Trading acted as a liquidity provider and market maker on interest rate and bond options, covering all European and select US interest rate markets for nineteen years. Their team of quantitative strategic traders utilised in-depth trading analysis and high-end visual tools, providing market insight to develop trading opportunities.
/jlne.ws/3v67sPo
Stocks Rise Again As Complacency Builds
Michael Kramer - Investing.com
Stocks managed to rally on a very volatile day yesterday, with the S&P 500 rising by more than 1%, then falling back to flat, and then managing to finish up around 60 bps. The index was very close to breaking out and clearing a resistance level at 3,960, but it got stuck up there, and stalled out. Additionally, the RSI has topped out on the 1hr chart, suggesting momentum may have peaked.
Option flows have been very bearish the past two days, based on negative delta flows that suggest put buying and calling selling. But the VIX movements have been muted and have not reflected this negative option flow. I'm confused and frustrated by the action of the VIX. Sometimes, what should be happening and what happens doesn't work out. The VVIX is near its lows and gives a sense of complacency in the market heading into the FOMC meeting next.
/jlne.ws/3yVhnsl
| | | | | | Exchanges | | | Nasdaq Net Revenues Increase 6%
Nasdaq 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.
/jlne.ws/3aTRmBQ
Equity Corporate Actions Alert #2022 - 183
Information Regarding the Reverse Stock Split and CUSIP Number Change for Cellectar Biosciences, Inc. (CLRB)
Nasdaq
Cellectar Biosciences, Inc. (CLRB) will effect a one-for-ten (1-10) reverse split of its common stock. The reverse stock split will become effective on Friday, July 22, 2022. In conjunction with the reverse split, the CUSIP number will change to 15117F807.
/jlne.ws/3RR07Ny
Equity Corporate Actions Alert #2022 - 182
Information Regarding the Business Combination of ArcLight Clean Transition Corp. II (ACTD/U/W) and OPAL HoldCo LLC
Nasdaq
The business combination of ArcLight Clean Transition Corp. II (ACTD/U/W) and OPAL HoldCo LLC. closed today, July 21, 2022. Following the completion of the business combination, the company's Class A Ordinary Shares (ACTD) and Warrants (ACTDW) will undergo a name, symbol, and CUSIP number change and the company's Units (ACTDU) will be suspended from trading. The new entity will be incorporated in Delaware. These actions will become effective on July 22, 2022.
/jlne.ws/3oibUqL
Equity Corporate Actions Alert #2022 - 181
(UPDATED: Merger effective) Information Regarding the Merger of Natus Medical Incorporated (NTUS)
Nasdaq
At a special meeting held on July 6, 2022, the shareholders of Natus Medical Incorporated (NTUS) approved a merger with entities associated with ArchiMed. The merger closed prior to the market open today, July 21, 2022. The stock will remain halted on the day of closing (July 21st) and will be suspended effective July 22, 2022.
/jlne.ws/3v6Hifp
| | | | | | Strategy | | | Banks Are Better Off Than They Look. How to Profit With This Options Strategy.
Steven M. Sears - Barron's
Big banks, like cockroaches, are unlikely to perish from this earth. Revenue and earnings may ebb and flow with economic cycles, but people will always need money and securities and places to store them.
Everyone knows this is true, but it's been increasingly hard to remember.
Many major bank stocks have fallen more than benchmark indexes on concerns that the economy was entering a recession, which would reduce demand for loans and other critical drivers of bank earnings.
/jlne.ws/3PM0PKg
Top 5 Ways to LOSE Money Trading Options
The Street
Here are five option trading sins to avoid at all costs â with real-life examples of what can happen when you don't.
We talk a lot about what traders should do to remain disciplined as they wade through the often choppy waters of the market. Today, we're looking at the opposite: what traders shouldn't do. We're breaking out our list of the top 5 best ways to lose money trading options.
Well known options trading subreddit Wall Street Bets has famously perfected this art, so alongside each of these warnings will be a cautionary tale sourced from Reddit's most popular stock market community.
/jlne.ws/3aTkyJd
How To Play The VIX For A Strong Payouts
Contrarian Outlook - Investing.com
Today we're going to look at how we can play the market's "fear gauge"âknown as the VIX, for a 7.5% dividend that's as steady as they come.
As you can guess, the VIX has been on the rise this year as the Fed-induced market selloff has deepened:
You can't outright buy the VIX, and even if you could, you wouldn't get any dividends from it. But there is an asset class that uses the higher volatility the VIX is showing us to generate extra cash, resulting in a higher (and safer) income stream for you: closed-end funds (CEFs) that sell covered-call options.
/jlne.ws/3zmCEwo
It's a Good Time for a Low-Vol, Quality ETF Strategy
Max Chen - Vettafi (ETF Trends)
Investors can potentially protect against chaotic markets with quality, low-volatility exchange traded fund strategies to better diversify their core allocations.
In the recent webcast, When Rates Rise, it's Time to Combine Low Volatility & Quality, Jordan Dekhayser, head of the Quantitative Strategist Team at Northern Trust Asset Management, warned investors that we are in a new age of volatility, with more frequent spikes in volatility. Specifically, he pointed out that there were only five volatility shocks, or any increase in the CBOE Volatility Index or so-called VIX daily greater than five points, throughout 2000 through 2008. In comparison, we experienced 65 volatility shocks from 2008 through 2022.
/jlne.ws/3vtBGML
5 Tips For Trading Out-of-the-Money Options
Schaeffer
When trading out-of-the-money (OTM) options, the objective is to maximize your leverage on the trade. While In-the-money (ITM) options are more expensive, they are more likely to maintain their intrinsic value at expiration. OTM options, on the other hand, have a lower upfront cost, making them more attractive to beginners.
Here are five tips for successfully trading OTM options.
/jlne.ws/3znTQSf
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