| May 21, 2025 | |
|
Lead Stories
Option market points to investor complacency
Jamie Chisholm - MarketWatch
Futures may show Wall Street eyeing a soft open on Wednesday, but the recent surge higher for stocks has left investors seemingly reluctant to buy portfolio protection in the shape of put options.
Put options allow the buyer to sell an asset at a particular level (the strike price) by a certain date (expiry). Call options allow the buyer to buy an asset under the same criteria.
/jlne.ws/4jhxtS1
World's Biggest Listing Gets Bigger After CATL Exercises Option
Dave Sebastian - Bloomberg
Contemporary Amperex Technology Co. Ltd. has raised HK$41 billion ($5.2 billion) for its Hong Kong share sale after arrangers of the deal exercised the so-called greenshoe option to increase the offering, making the world's biggest listing this year even bigger.
The Chinese electric-vehicle battery giant, commonly known as CATL, is issuing 20.3 million additional shares, representing about 15% of total shares issued for the listing after the upsize option, according to a filing it made to the Hong Kong exchange late Tuesday. That increases the deal size from HK$35.7 billion.
/jlne.ws/3FoCNVS
A long-shot options trade is wagering on bitcoin to hit $300,000 by the end of June
Filip De Mott - Business Insider
According to data from the crypto derivatives exchange Deribit, trading active in call options at that strike price was the second most popular activity on Tuesday.
While bitcoin has no shortage of bulls, a move to that level would be an astounding jump and would surpass the most bullish near-term forecasts. Standard Chartered is the closest match, predicting bitcoin to reach $120,000 in the second quarter and end the year at $200,000.
/jlne.ws/4mssgtE
ETFGI Reports Assets Invested In The European ETF Industry Reached A Record High Of $2.47 Trillion At The End Of April
Mondovisione
ETFGI, a leading independent research and consultancy firm renowned for its expertise in subscription research, consulting services, events, and ETF TV on global ETF industry trends, reported today that assets invested in the European ETF industry reached a record high of $2.47 trillion at the end of April. Year-to-date (YTD) net inflows of $118.60 billion mark the highest on record, according to ETFGI's April 2025 European ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
/jlne.ws/3FkPDEC
UBS Family Office Clients Eye Hedge Fund Bets Amid Volatility
Benjamin Stupples - Bloomberg
UBS Group AG's family office clients are leaning into hedge fund allocations as they focus on more active strategies to help navigate the shifting macroeconomic landscape.
Curbing passive investments and pursuing hedge fund allocations were among the most common ways for investment firms for the world's super-rich to enhance portfolio diversification, the Swiss bank said in a report on Wednesday. Global trade tensions were cited as their top financial risk.
/jlne.ws/4doWSId
Jamie Chisholm - MarketWatch
Futures may show Wall Street eyeing a soft open on Wednesday, but the recent surge higher for stocks has left investors seemingly reluctant to buy portfolio protection in the shape of put options.
Put options allow the buyer to sell an asset at a particular level (the strike price) by a certain date (expiry). Call options allow the buyer to buy an asset under the same criteria.
/jlne.ws/4jhxtS1
World's Biggest Listing Gets Bigger After CATL Exercises Option
Dave Sebastian - Bloomberg
Contemporary Amperex Technology Co. Ltd. has raised HK$41 billion ($5.2 billion) for its Hong Kong share sale after arrangers of the deal exercised the so-called greenshoe option to increase the offering, making the world's biggest listing this year even bigger.
The Chinese electric-vehicle battery giant, commonly known as CATL, is issuing 20.3 million additional shares, representing about 15% of total shares issued for the listing after the upsize option, according to a filing it made to the Hong Kong exchange late Tuesday. That increases the deal size from HK$35.7 billion.
/jlne.ws/3FoCNVS
A long-shot options trade is wagering on bitcoin to hit $300,000 by the end of June
Filip De Mott - Business Insider
According to data from the crypto derivatives exchange Deribit, trading active in call options at that strike price was the second most popular activity on Tuesday.
While bitcoin has no shortage of bulls, a move to that level would be an astounding jump and would surpass the most bullish near-term forecasts. Standard Chartered is the closest match, predicting bitcoin to reach $120,000 in the second quarter and end the year at $200,000.
/jlne.ws/4mssgtE
ETFGI Reports Assets Invested In The European ETF Industry Reached A Record High Of $2.47 Trillion At The End Of April
Mondovisione
ETFGI, a leading independent research and consultancy firm renowned for its expertise in subscription research, consulting services, events, and ETF TV on global ETF industry trends, reported today that assets invested in the European ETF industry reached a record high of $2.47 trillion at the end of April. Year-to-date (YTD) net inflows of $118.60 billion mark the highest on record, according to ETFGI's April 2025 European ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
/jlne.ws/3FkPDEC
UBS Family Office Clients Eye Hedge Fund Bets Amid Volatility
Benjamin Stupples - Bloomberg
UBS Group AG's family office clients are leaning into hedge fund allocations as they focus on more active strategies to help navigate the shifting macroeconomic landscape.
Curbing passive investments and pursuing hedge fund allocations were among the most common ways for investment firms for the world's super-rich to enhance portfolio diversification, the Swiss bank said in a report on Wednesday. Global trade tensions were cited as their top financial risk.
/jlne.ws/4doWSId
Exchanges
ETD Volume - April 2025
FIA
Highlights from April 2025: Worldwide volume of exchange-traded derivatives reached 9.48 billion contracts in April. This was up 2.3% from March 2025 but down 37.5% from April 2024. Options growth has slowed. Global trading of options reached 6.66 billion contracts in April, down by more than 47% from last year, with most of that decline taking place in the Asia-Pacific region. On the other hand, global trading of futures reached 2.82 billion contracts in April, up 13.5% from the same month last year. On a year-to-date basis, volume in the first four months year was 37.01 billion contracts, down 41.3% from the first four months of 2024. The majority of that decrease came from equity contracts.
/jlne.ws/4jd5xPc
Kraken Rolls Out Regulated Crypto Derivatives in Europe
Ian Allison - CoinDesk
Kraken is rolling out regulated crypto derivatives trading in Europe, compliant with the European Union's Markets in Financial Instruments Directive (MiFID II). The crypto exchange's perpetual and fixed maturity futures contracts will now be available for retail and institutional customers in the European Economic Area (EEA), the firm said on Tuesday. Permission to trade crypto derivatives came via a Cypriot investment firm called Greenfield Wealth, which Kraken acquired earlier this year, securing the exchange a license from the Cyprus Securities and Exchange Commission (CySEC).
/jlne.ws/4k44geC
FIA
Highlights from April 2025: Worldwide volume of exchange-traded derivatives reached 9.48 billion contracts in April. This was up 2.3% from March 2025 but down 37.5% from April 2024. Options growth has slowed. Global trading of options reached 6.66 billion contracts in April, down by more than 47% from last year, with most of that decline taking place in the Asia-Pacific region. On the other hand, global trading of futures reached 2.82 billion contracts in April, up 13.5% from the same month last year. On a year-to-date basis, volume in the first four months year was 37.01 billion contracts, down 41.3% from the first four months of 2024. The majority of that decrease came from equity contracts.
/jlne.ws/4jd5xPc
Kraken Rolls Out Regulated Crypto Derivatives in Europe
Ian Allison - CoinDesk
Kraken is rolling out regulated crypto derivatives trading in Europe, compliant with the European Union's Markets in Financial Instruments Directive (MiFID II). The crypto exchange's perpetual and fixed maturity futures contracts will now be available for retail and institutional customers in the European Economic Area (EEA), the firm said on Tuesday. Permission to trade crypto derivatives came via a Cypriot investment firm called Greenfield Wealth, which Kraken acquired earlier this year, securing the exchange a license from the Cyprus Securities and Exchange Commission (CySEC).
/jlne.ws/4k44geC
Strategy
SPX Skew Signals Longer-Term Caution Despite Rally
Mandy Xu - Cboe
Implied volatilities fell across asset classes last week following the US-China tariff reprieve, with equity and credit implied volatilities dropping the most. The VIX index fell almost 5 pts while VIXIG (IG credit vol) declined over 7 pts - both are now trading below their long-term averages. In contrast, VIXTLT (20+Yr Treasury Volatility Index) increased wk/wk as both inflation breakevens and term premium continued to widen. Following Moody's downgrade, US 30Y yield is now over 5%.
/jlne.ws/436boRM
Mandy Xu - Cboe
Implied volatilities fell across asset classes last week following the US-China tariff reprieve, with equity and credit implied volatilities dropping the most. The VIX index fell almost 5 pts while VIXIG (IG credit vol) declined over 7 pts - both are now trading below their long-term averages. In contrast, VIXTLT (20+Yr Treasury Volatility Index) increased wk/wk as both inflation breakevens and term premium continued to widen. Following Moody's downgrade, US 30Y yield is now over 5%.
/jlne.ws/436boRM
JLN Options is sponsored by:
 |  |  |
 |  |  |
 |  |  |
