| February 02, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | OCC Clears 923M Contracts in January 2023, Third Highest Month on Record
OCC
OCC, the world's largest equity derivatives clearing organization, announced today that year-to-date average daily volume through January 2023 was 46.2 million contracts, up 2.9 percent compared to year-to-date average daily volume through January 2022. Total volume was 923.2 million contracts, up 2.9 percent compared to January 2022 and the third highest month in OCC's history.
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Turkish Lira Options Show Currency at Breaking Point After Vote; Authorities have kept lira stable for past six months; Market pricing implies more volatility, steep drop after vote
Netty Idayu Ismail - Bloomberg
For months, the Turkish lira held the unfamiliar title of dullest currency in emerging markets. With pivotal elections looming, investors are bracing for a return to form. Whether President Recep Tayyip Erdogan extends his two-decade rule, or if the opposition prevails in a tight race, traders ultimately expect volatility to come back and the lira to weaken. Options are pricing an almost 60% probability that the Turkish currency will slump 25% to a new low of 25 against the dollar by the end of the year.
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Crypto Investors Can Purchase Bankruptcy 'Put Options' to Protect Funds on Binance, Coinbase, Kraken
Krisztian Sandor - CoinDesk
Bankruptcy-focused investment firm Cherokee Acquisitions has started offering what it calls "put options" to crypto investors to protect their funds on crypto exchanges Binance, Coinbase and Kraken in the event of a bankruptcy, CoinDesk learned Wednesday from the company. The put options will protect account holders' deposits on the listed exchanges, paying back 100% of the assets in the account if the exchange files for bankruptcy protection within the contract period. Large institutional investors and hedge funds will sell the options and compensate investors in the event of bankruptcy filings, Brian Ferrara, sourcing and trading specialist at Cherokee, told CoinDesk.
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US Plays Down ION Cyberattack, Sees No 'Systemic Financial Risk'; Cyberattack tied to notorious ransomware gang LockBit; Incident affects processing of trades in derivatives markets
Isis Almeida, Mark Burton and Katherine Doherty - Bloomberg
The cyberattack on a UK-based software firm that upended some derivatives trading doesn't pose a "systemic risk to the financial sector," a senior official in the US Treasury Department said Wednesday. The attack of ION Trading UK, first reported on Tuesday, affected 42 of its clients and forced several European and US banks and brokers to process trades manually.
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Adani Stock Rout Has Now Wiped Out Over $100 Billion in Market Value
Zahra Tayeb - Markets Insider
Adani Group stocks have now wiped out over $100 billion in market value, with the troubled Indian conglomerate canceling its share sale in the wake of a short-seller attack, according to Reuters.
Shares in its flagship company Adani Enterprises plunged 26.7% Thursday, and are down almost 60% this year.
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The Case for Stocks to Go HigherâPerhaps Much Higher
Teresa Rivas - Barron's
The market has had a great 2023 so far, but the rally may be here for a good time, if not a long time. That doesn't mean that investors shouldn't enjoy the ride.
After an exceptionally strong January, the S&P 500 was up nearly 8% through Wednesday's close. Tech is rallying, as is crypto, and some are hopeful that the Federal Reserve's campaign of interest-rate increases may lose steam. In other words, investors are feeling upbeat, less risk averse, and aren't as fearful of an economic slowdown.
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| | | | | | Exchanges | | | CME Group Reports January 2023 Monthly Market Statistics; Record SOFR options volume and open interest
CME Group
CME Group, the world's leading derivatives marketplace, today reported its January 2023 market statistics, showing an average daily volume (ADV) of 21.7 million contracts during the month. Market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume. January 2023 ADV across asset classes includes.
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| | | | | | Regulation & Enforcement | | | FIA comments on ION Group cyber incident
FIA
FIA is aware of network issues caused by a cyber incident on certain ION Group systems which are impacting the trading and clearing of exchange traded derivatives by ION customers across global markets. We are working with impacted members, including clearing firms and exchanges, as well as market regulators and others, to assess the extent of the impact on trading, processing, and clearing.
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***** No comment necessary.~JJL
| | | | | | Strategy | | | Investing in Options: Past Growth and 2023 Potential
Ken Kwalik - Cboe
Over the past 20+ years, options usage has evolved well beyond point-in-time transactional products, and volumes continue to increase nearly every year. Today, the options market continues to grow as more and more professionally managed products offer solutions or enhancements to several kinds of investment objectives.
This evolution is important because, after a decade of relative calm, global markets have since encountered multiple severe, far-reaching selloffs affecting all asset classes, including derivatives, over the past few years.
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Apple, Amazon and Alphabet earnings are coming. Here's what the stock options market is bracing for.
Tomi Kilgore - MarketWatch
The options market has prepared for bigger-than-usual moves in the stocks of a trio of trillion-dollar companies, the day after they report quarterly earnings results.
That's because the implied volatility, or how much a stock can be expected to move over a certain period, of the stocks for Apple Inc., Alphabet Inc. and Amazon.com Inc. remain elevated, even as implied volatility for the S&P 500 index has fallen to 13-month lows.
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Bitcoin bulls plan to flip $23K to support by aiming to win this week's $1B options expiry
Coin Telegraph
Bitcoin's price has been trading above $22,500 for 12 days. Of course, this situation can change even if Federal Reserve chair Jerome Powell issues positive statements about the economy in today's post-FOMC presser.
Even if the decision matches the market consensus, the post-meeting statement should be investors' primary area of focus. Specific areas to focus on would be clues for the next meeting in March.
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S&P 500 on track to achieve bullish 'golden cross'
William Watts - MarketWatch
The S&P 500 was on track Thursday to achieve what technicians call a "golden cross," with the 50-day moving average pushing above the index's 200-day moving average.
The 50-day hasn't closed above the 200-day average since March 11, 2022, according to Dow Jones Market Data.
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4 Signs That a Crypto Bubble Is Formingâand How It Could Burst
Jack Denton - Barron's
Cryptocurrencies are off to a remarkable start this year, with Bitcoin rallying 40%. But signs of another bubble are already appearingâeven with the last one barely over. Here are four warning signs of froth in the market, and what may need to change for the rally to continue.
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Equity Options Explosion
Cboe (Video)
In today's #Vol411, Scott Bauer @cboesib covers busy equity #options markets for $AMZN, $META, $GOOG, $TSLA & $AAPL
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| | | | | | Education | | | Wide World of Options: Options Pricing: A Closer Look at Valuation and Volatility
The Options Insider (Audio)
Knowing how to value a call or put is necessary to understand options. But to take that understanding to the next level, investors should also have a firm grasp on the concept of volatility and how it may affect options pricing. In this Wide World of Options episode, host Mark Benzaquen welcomes OIC instructor Ken Keating for a discussion on the primary inputs used to determine options pricing as well as one of pricing's key components, implied volatility.
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| | | | | | Miscellaneous | | | Adani-Hindenburg: Short Seller's Masterclass in Financial Globalization
Andy Mukherjee - Bloomberg
Without even betting a single dollar in the Indian market, a short seller from New York managed to torpedo the country's most prestigious share sale, dimming the aura of unassailability around its sponsoring tycoon. That's the power of borderless money â it can pull the ladder from under the world's largest fortunes from 8,000 miles away. In winning the first round of its battle against Gautam Adani, Hindenburg Research has given us a masterclass in financial globalization.
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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
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| | | Jeff Bergstrom
Editor
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