| April 10, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Options trading surges as investors brace themselves for US regional bank volatility; Fresh turmoil expected when results reveal just how badly midsized lenders' earnings have been hit
Stephen Gandel and Nicholas Megaw and Colby Smith - Financial Times
Investors are loading up on protection against a fresh round of financial turmoil in US regional bank stocks as lenders prepare to reveal how badly their earnings have been squeezed by the troubles that took down Silicon Valley Bank.
/jlne.ws/41haJck
Investors Turn to Options to Minimize Risk
Suzanne McGee - The Wall Street Journal
Global pandemics. Geopolitical tensions. Whipsawing energy markets and the soaring cost of gold. Inflation, interest rates, bank failures... The world today feels as if it's awash in risks that have the potential to wreak havoc on your portfolio. Little wonder that many investors began 2023 by asking themselves a version of Dirty Harry's question: "Do I feel lucky?"
/jlne.ws/3ZZ1zQG
Hedge Funds Rushed to Short Treasuries in Time for Strong US Payrolls Data
Garfield Reynolds - Bloomberg
Speculators timed it just about perfectly before Friday's strong US payrolls data, adding the most to their bets against benchmark Treasuries in just over a year.
Net-short leveraged fund positions in 10-year futures climbed by almost 150,000 contracts in the week to last Tuesday, the biggest bearish shift since March 2022, according to the latest report from the Commodity Futures Trading Commission. Treasuries tumbled Friday after the March labor data boosted expectations that the Federal Reserve will hike rates by a quarter point in early May.
/jlne.ws/3mn7t0o
The Fed Has so Far Saved the Stock Market From Crashing After SVB: Yardeni
Jennifer Sor - Markets Insider
The Federal Reserve has so far saved the stock market from crashing after the implosion of Silicon Valley Bank last month, thanks to its massive liquidity injections, according to market veteran Ed Yardeni.
In a recent blog post, Yardeni pointed to the Fed's Bank Term Funding Program, which was announced shortly after the crash of Silicon Valley Bank last month. The program offers short-term loans to financial institutions in order to help ease liquidity stress - ensuring banks have enough money on hand in event of a deposit run, which led to SVB's collapse in early March.
/jlne.ws/3o11grq
| | | | | | Exchanges | | | SGX Group reports market statistics for March 2023; FX, commodity derivatives set records as investor optimism drives trading activity; Securities turnover grows, outperforming markets across ASEAN
Singapore Exchange
Singapore Exchange (SGX Group) today released its market statistics for March 2023. Optimism over China's recovery, alongside easing expectations for global interest rates to stay elevated, drove trading activity, with multiple volume records in foreign exchange (FX) futures and commodity derivatives.
/jlne.ws/41eQZGp
| | | | | | Strategy | | | Analysis: Gloomy U.S. bank sector could yield payoff for contrarian options bets
Saqib Iqbal Ahmed - Reuters
Weeks after a banking crisis pummeled financial stocks, some options strategists say the heightened pessimism in the sector presents an attractive opportunity to position for a rebound ahead of earnings season.
While the S&P 500 index has advanced 6% since mid-March, when the failure of Silicon Valley Bank (SVB) sparked tumult in the banking sector, investors have been more wary of financial stocks. The S&P 500 Banks Group is up just 3% from its March low and remains down 14% for the year.
/jlne.ws/3KJBTTP
Bank Earnings This Week
Cboe
In #Vol411, Joel Hawthorne @louiswinthrop runs through the most actively traded #options contracts and looks at upcoming #earnings.
/jlne.ws/3KNwScY
| | | | | | Education | | | Options trading, explained: Is it right for you?
Kaitlyn Koterbski - Fortune via Yahoo Finance
If you own a brokerage account and like to manage your own investments, you may have come across the concept of options trading. This gives investors the opportunity to buy assets at a discounted price and increase their earnings. In a rising stock market, you could multiply your return on investment in just a few weeks or months. Options trading can also protect your investments from losses when the stock market dips.
But options trading also comes with risks. While you could potentially save money, you could also more easily lose it. Understanding the ins and outs of options trading can help you determine whether it is a good investment option for you.
/jlne.ws/3Ur51T3
| | | | | | Events | | | OIC 2023 Educational Series: Generating Income, Hedging and Spread Trading
OIC
For the second quarter of 2023, The Options Industry Council is offering another slate of free educational webinars for option investors, with two new sessions each month. The six webinars scheduled throughout the quarter will cover three themes: income-generation in April, hedging with options in May and spread trading in June.
April webinars will begin with an overview of covered calls and the strategy known as the "poor man's covered call," then conclude with a presentation on cash-secured puts. In May, featured topics will be protective puts for session one, followed by option collars later in the month. Finally, the quarter will have two webinars on spreads, beginning with debit spreads before moving on to credit spreads.
/jlne.ws/3o2Vh5z
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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
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
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