 | | | | | | | | November 27, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Editor's Note: JLN Options will not be published tomorrow (November 28) or Friday (November 29) in observance of the Thanksgiving holiday. We'll be back on Monday, December 2. Have a great holiday (or weekend if not in the US)!
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Leverage Shares Wants to Help European Investors Trade U.S. ETPS and Manage Fragmentation, Says Oktay Kavrak
JohnLothianNews.com
Investors in the EU and UK are looking for exposure to U.S. companies. They are also looking for the enhancement of leveraged products. In the past, foreign institutional investors could access U.S. ETFs directly or through local US-based affiliates. But in the past five years, regulations such as PRIIPs have made it harder for EMEA traders to hold U.S. ETFs.
Read more »
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Arcesium Executive Highlights Hedge Funds' Balancing Act: Advanced Tech vs. Top Talent
JohnLothianNews.com
In a recent interview with John Lothian News, David Nable, a senior executive at Arcesium, highlighted the growing challenge hedge funds face in balancing advanced technology adoption with the demand for skilled portfolio managers. Nable emphasized that top-tier talent has high expectations for seamless technology infrastructure when moving to a new employer.
Watch »
| | | | | | Lead Stories | | | Option Traders Bet on Deep Treasury-Market Selloff Within Weeks; Bets include 10-year rate possibly eclipsing YTD high of 4.74%; JPMorgan Treasury client short positions rise to most in month
Edward Bolingbroke - Bloomberg
A bearish tone is taking hold in the market for interest-rate options, suggesting that bond traders are bracing for Treasury yields to surge anew in the coming weeks. There has been steady demand for bearish hedges using Treasury-option put structures in January contracts on 10-year notes, which expire Dec. 27. Positioning has also been building over the past couple of days in the February options, which expire Jan. 24, the week of President-elect Donald Trump's inauguration.
/jlne.ws/4fMYQCC
How Did MicroStrategy Sell $3 Billion of Zero-Rate Debt? Option Volatility is Key.
Andrew Bary - Barron's
How was MicroStrategy able to borrow $3 billion at an interest rate of zero?
/jlne.ws/3B1T1SI
Bitcoin Fails to Hit $100,000 as Options Expiry Triggers a Fall; Bitcoin has come off its high perch for now, and one of reasons cited by market participants for the decline was good old profit-taking.
IndustryLeaders
Bitcoin, world's largest cryptocurrency's investors are expecting a significant downward move after it failed to hit an all-time peak of $100,000. This market sentiment was as per crypto trading platform citing recent options expiry activity for Bitcoin. Bitcoin faced selling pressure, dipping to an intraday low of $92,600 before recovering to $94,600 on Tuesday. Its market dominance dropped to 57.38% as long-position liquidations exacerbated the downward trend.
/jlne.ws/3VbDvuw
Investors cling to crash protection despite sizzling US stock market rally
Saqib Iqbal Ahmed - Reuters
Demand for options protection against an equity market crash is rising, even as a post-election rally takes U.S. stocks to record highs.
Worries over the possibility of a contested election dissipated following President-elect Donald Trump's victory earlier this month, helping the S&P 500 climb to an all-time high. The Cboe Volatility Index, one measure of investor anxiety, closed near a post-election low of 14.10 on Tuesday.
/jlne.ws/49cJYuI
Defiance ETFs CEO on MicroStrategy ETFs Straining Limits
Bloomberg Markets TV Shows (Video)
MicroStrategy's volatility testing the limits of exposure for prime brokers working with firms like Defiance ETFs. Defiance ETFs CEO and CIO Sylvia Jablonski discusses demand and flows has looked as the price of Bitcoin has gone up. She speaks with Scarlet Fu on "Bloomberg Markets."
/jlne.ws/3VbUwVb
Bitcoin options trade shows more bets on retreat after failing to breach $100,000
Gertrude Chavez-Dreyfuss - Reuters
Investors in the world's largest cryptocurrency are anticipating a significant downward move after bitcoin failed to hit an all-time peak of $100,000, according to a crypto trading platform citing recent options activity. Bitcoin (BTC-USD) hit a record high of $99,830 on Nov. 22, but it has since fallen more than 8% to a one-week low of 91,377.32 on Tuesday.
/jlne.ws/416L4Xc
Why is bitcoin's $100,000 push stalling? These long-term holders can't resist selling. Spot bitcoin ETFs saw $438 million outflow on Monday
Frances Yue - MarketWatch
Bitcoin's push for the $100,000 threshold remained stalled Tuesday, with some investors appearing to book profits following the crypto's rally to a record high. The largest cryptocurrency was trading at around $91,867 Tuesday afternoon, according to Dow Jones Market Data. It is down 8% from bitcoin's record high at $99,768 reached on Nov. 22, while still up 119% year to date.
/jlne.ws/3CFVnaj
| | | | | | Exchanges | | | MIAX exchange lists Bitcoin ETF options; MIAX joins Nasdaq and NYSE in listing options on Bitcoin ETFs. Cboe will start in December.
Alex O'Donnell - CoinTelegraph
MIAX Sapphire Options Exchange submitted revised rules to start listing options on three Bitcoin exchange-traded funds (ETFs), according to a Nov. 25 regulatory filing.
The rule change permits MIAX Sapphire to list options on Grayscale Bitcoin Trust (GBTC), the Grayscale Bitcoin Mini Trust (BTC), and Bitwise Bitcoin ETF (BITB), the filing said.
/jlne.ws/499d9io
| | | | | | Regulation & Enforcement | | | EU Judges Uphold HSBC Cartel Fine
Edith Hancock - The Wall Street Journal
The European Union's General Court upheld a 31.74 million-euro ($33.3 million) fine handed to HSBC in 2021 for its role in a euro interest rate derivatives cartel. The court's decision on Wednesday is in line with a 2021 ruling from the European Commission, a revision that recalculated an earlier fine. The commission originally fined HSBC roughly 33.6 million euros for its role in the cartel, which it said distorted competition for euro interest rate derivatives. Judges then canceled the fine in 2019, saying the commission's statement of reasons was inadequate. That led the commission to reopen its probe and recalculate the penalty.
/jlne.ws/3Z7rCqC
| | | | | | Strategy | | | JPMorgan's Volatility Play: Long VIX Calls, Short SPY Puts
Surbhi Jain - Benzinga
JPMorgan suggests pairing long VIX calls with short SPY puts for a balanced volatility trade.
This strategy capitalizes on pricey SPY hedges while leveraging undervalued VIX options.
/jlne.ws/4g9TrFJ
Behind the Ticker: Lazard Global Listed Infrastructure Active ETF (GIFL)
Cboe (Video)
/jlne.ws/4imZUz5
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Editor
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