| August 15, 2018 | | | |  | Spencer Doar
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Significant short-term market impact to no-deal Brexit - Hunt
Gederts Gelzis - Reuters
The short-term market impact will be significant if Britain leaves the European Union without a deal, Foreign Secretary Jeremy Hunt said during a visit to Latvia on Wednesday.
/reut.rs/2PbRigX
****SD: Not that this isn't important to note, but I wouldn't have this as high up if it weren't for the great picture of Jeremy Hunt that accompanies the story.
| | | | | | Lead Stories | | | July Options Market Quality Best in Almost 5 Years
TABB Forum Options LiquidityMatrix
The average bid/ask spread in July narrowed, from 0.26 in June to 0.22. This is the narrowest spread for the industry since September 2013. It also represents the fifth consecutive month of an improvement in the bid/ask spread since spreads widened to 0.36 accompanying the volatility in February.
bit.ly/2MLqKRZ
****SD: How bout dat? (Hopefully you don't get the reference...)
Cboe delays rule change set to boost FLEX Options liquidity
Louisa Chender - Global Investor Group (SUBSCRIPTION)
Cboe's new rules are expected to boost liquidity in FLEX Options after noting more participants trade Non-FLEX Options
/goo.gl/PSB1yw
****SD: The filing to delay can be found here. The SEC filing can be found here. I don't believe there were any comment letters, which strikes me as a bit odd.
Buy Side Wants One-Stop Shop for Trading Needs
John D'Antona Jr. - Traders News
So, what does the buy-side trader want when it comes to multi-asset trading?
/goo.gl/JJhyGm
****SD: Who doesn't want a one-stop shop?
Wall Street's 'fear index' has biggest jump in more than a month
Ryan Vlastelica - MarketWatch
The Cboe Volatility index spiked on Wednesday, reaching its highest level in more than a month as continuing uncertainty surrounding Turkey weighed on markets.
/on.mktw.net/2PaHTGg
Turkey, trade worries hit Wall Street again
Amy Caren Daniel - Reuters
U.S. stock indexes fell on Wednesday in a broad-based decline, hurt by concerns over the strong dollar and Turkey's currency crisis, as well as the trade tensions with U.S. trading partners that have dominated the first half of 2018.
/reut.rs/2P9uZZb
| | | | | | Exchanges and Clearing | | | Increasing order book share in Bund options
Eurex
In HY1 2018, average daily volume in Bund options was ca. 192,000 contracts, an increase of more than 15 percent versus 2017. The screen to block volume share for Bund options moved from 30 percent in 2017 to 40 percent in HY1 2018. While higher volumes in the fall-out of the Italian elections were mostly conducted as block trades, screen trading was more strongly driven by an increase in option strategy trading.
/jlne.ws/2BfruO4
BSE to launch liquidity enhancement plan on single stock options, index options from Sep
Business Standard News
Leading stock exchange BSE will launch liquidity enhancement scheme on monthly single stock options and index options from next month.
Under the liquidity enhancement scheme (LES), brokers and other market intermediaries are given incentives for a specified period of time to bring in liquidity and generate investor interest in securities which have limited trading activity.
bit.ly/2PcZEoH
| | | | | | Moves | | | R.J. O'Brien Names Stephen Brodsky To New Role Of Chief Strategy Officer
Mondovisione
Chicago-based R.J. O'Brien & Associates (RJO), the oldest and largest independent futures brokerage and clearing firm in the United States, today announced that Stephen A. Brodsky - long-time exchange, trading and capital markets executive - has just joined the firm as Chief Strategy Officer. Brodsky, also Senior Managing Director, reports to Chairman and CEO Gerald Corcoran in the newly created role.
bit.ly/2ODwvSd
| | | | | | Regulation & Enforcement | | | SEC ramps up Tesla investigation after Elon Musk's tweets
Megan Henney - Fox Business
The Securities and Exchange Commission (SEC) is ramping up its investigation into Tesla co-founder and chief executive Elon Musk after he tweeted last week that he was considering taking the electric carmaker private, and said "funding secured", FOX Business' Charlie Gasparino exclusively reported. The investigation is now "formal", Gasparino noted.
/fxn.ws/2OE6RwL
****SD: I know the oft-noted shorts are the focus, but if the investor lawsuit comes out in favor of the plaintiffs, will that affect options losses/gains during the volatile period following the tweet?
| | | | | | Strategy | | | Turkey's currency crisis is unlike many others in recent history, and there are 2 trades that could rake in profits
Akin Oyedele - Business Insider Prime (SUBSCRIPTION)
Options-market activity suggests traders aren't yet worried about Turkey's currency crisis spreading to other countries.
Credit Suisse derivatives strategists said a bullish reversal could be coming, having observed that a key emerging-market exchange-traded fund is trading differently compared to other crises.
/goo.gl/ACN9SG
****SD: The actual strategies referenced are: 1) "SPY call spread collar: with the recent uptick in vol and steepening in skew, we like selling the SPY Oct'18 265 put to buy the 287/294 call spread for $0.06 (spot ref 283.13). The put is more than 6% below current levels while you make $7 if S&P rallies 4% in the next two months..." and 2) "EEM call spread: given the flattening in skew in EEM, call spreads set up well for those who want to play a rebound with spot hovering around the 1-year low. We like the EEM Oct'18 44/46 call spread for $0.50 (ref 42.66) giving you max 4x leverage to position for 3-8% rebound in the next two months."
Investors Could Be Underestimating Sweden's Election Risks
Love Liman - Bloomberg Quint
Investors are underestimating Sweden's political risks and swings in the krona will get larger in the run-up to September's election and Riksbank meeting, according to Danske Bank A/S.
bit.ly/2OEgJXz
| | | | | | Education | | | Get the Facts about Covered Calls
OIC Team - OCC Blog
The covered call is one of most common option strategies there is, but it isn't going to be right for every situation. It can sometimes be a sound strategy, and other times it might not be. What's important to understand is that the covered call does have significant history and academic research behind it, making it clear that it can be an ally for investors, even though it can also underperform a long-only approach in certain market conditions.
bit.ly/2OCUq4o
| | | | | | Events | | | Seminar: Option Spread Opportunities (Thursday, August 16 - 3:30 p.m. CST)
OIC
Option spread strategies present interesting trading opportunities. They also spread off the risk of volatility and time to a certain degree. How do veteran traders choose strike prices? Join Peter Lusk, Cboe Global Markets, as he shares the advantages and disadvantages of various spread trading strategies along with the dynamics of option pricing.
bit.ly/2vQbM75
| | | | | | Miscellaneous | | | This bull market in stocks stands just a week away from the history books
Sue Chang - MarketWatch
Barring a breathtaking plunge, the bull market in U.S. stocks on Aug. 22 will become the longest in history, and optimistic investors argue it has miles to go before it rests.
/on.mktw.net/2Mxx1DU
Commentary: Dollar surge, EM turmoil echo Greenspan's 1998 'oasis of prosperity' warning
Jamie McGeever - Reuters
"It is just not credible that the United States can remain an oasis of prosperity unaffected by a world that is experiencing greatly increased stress," opined Alan Greenspan almost exactly 20 years ago.
/reut.rs/2MSI2gk
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