| August 09, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Options Discovery Episode 21: Intro to Options and Dividends; CEO of Matrix Executions, Jordan Naylor, Breaks Down Options and Dividends With JLN's Alex Teng
JohnLothianNews.com
In this episode of Options Discovery, Asma Awass introduces the effect of dividends and corporate actions on options prices. Alex Teng then sits down with Jordan Naylor, industry veteran and CEO of Matrix executions, to dive deeper into these concepts. Jordan discusses his background in finance, how options prices react during dividend events, the founding of Matrix executions and more. You can learn more about Matrix executions here: https://www.matrixexecutions.com/
Watch the video »
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Intro to Options on Earnings: Jordan Naylor, CEO of Matrix Executions, Explains These Concepts and More in This Options Discovery Interview
JohnLothianNews.com
In this Options Discovery full interview, Alex Teng sits down with Jordan Naylor, industry veteran and CEO of Matrix executions, for this week's full interview. Jordan discusses his background in finance, how options prices react during earnings events, effects of stock dividends on options, the founding of Matrix executions and more. You can learn more about Matrix executions here: https://www.matrixexecutions.com/
Watch the video »
| | | | | | Lead Stories | | | The Market's Skeptics Are Giving Up. It's Time to Worry.
Steven M. Sears - Barron's
The capitulation of bearish investors seems to be a popular trend on Wall Street.
After months of unexpectedly strong stock market performance, more big-name investors have shuttered bearish bets or changed their dour tuneâeven as the stock market has begun to edge lower.
/jlne.ws/47qr3v9
Investors Are 'Sleepwalking' Into Market Turmoil, Recession: Hanke
Theron Mohamed - Markets Insider
Investors are too complacent and risk being blindsided by an economic slump early next year, Steve Hanke has warned.
"We're sleepwalking into turbulence in the market," the professor of applied economics at Johns Hopkins told Stansberry Research in a recent interview. "We're basically sleepwalking into a recession."
/jlne.ws/444ktI6
From Options to Sports Bets, Americans Love to Gamble
Gunjan Banerji - WSJ
Americans got hooked on risky options during the pandemic. Now, they can't let go of the trades.
Individual investors recently accounted for 27% of all options-trading activity, according to estimates from Bloomberg Intelligence. That's below the pandemic peak of almost 30% but well above the levels in early 2020. By comparison, everyday investors recently made up 18% of all activity in stocks.
/jlne.ws/3OQlf7e
Dow Slides 450 Points. Fear Gauge Spikes.
Connor Smith - Barron's
The Dow Jones Industrial Average fell more than 400 points in Tuesday morning trading as a wave of negative headlines spiked the market's fear gauge.
/jlne.ws/452S6vd
CBOE Volatility Index Increases Ahead Of Inflation Data
Benzinga via Markets Insider
The S&P 500 settled lower on Tuesday, after credit rating agency Moody's downgraded 10 small- to mid-sized lenders.
The S&P 500 Banks index has lost 2.5% year-to-date, versus a 17.2% surge recorded by the S&P 500 index in the same period. The banks index dipped 1.1% during the Tuesday's session.
/jlne.ws/3QDtdlv
Rivian's Wounded Shorts Set for Potential Squeeze
Esha Dey - Bloomberg
Investors betting against Rivian Automotive Inc. have a lot riding on the electric vehicle maker's results later Tuesday, after a steep rally exposed them to big losses. Short interest has risen to 13% of the shares available for trading - representing about $2.2 billion worth of stock, according to data from S3 Partners LLC. Rivian's 32% advance this year has cost the shorts more than $736 million in mark-to-market losses as of Monday's close, S3 said. After Tesla Inc., it's the biggest short position among US electric-vehicle firms.
/jlne.ws/3OOXAny
Bitcoin Price Rises. But Even Crypto Bulls Wonder if the Big Gains Are Over.
Jack Denton - Barron's
Bitcoin and other cryptocurrencies were rising Wednesday but continue to exhibit stagnant price action over a longer term as analysts and market participants increasingly wonder whether it's a rutâor a more permanent pattern.
/jlne.ws/47rXz0g
Hedge Funds, Asset Managers Extend Division in Bond Positions
Edward Bolingbroke - Bloomberg
Into last week's push higher in Treasury yields, new short risk was created. The latest positioning points to hedge funds building their short base, widening the divergence with asset managers taking the other side of the trade in long positions.
Along with the move higher in yields, the broad increase in open interest points to fresh short positions, according to Bank of America. Meanwhile, JPMorgan's latest Treasury client survey
showed short positions gaining in the cash bond market, rising to the most on an outright basis since May 1.
/jlne.ws/3sbhYWX
| | | | | | Exchanges | | | Cboe Digital Slows Hiring
Shanny Basar - Traders Magazine
Hiring slowed at Cboe Digital in the second quarter, partly due to ongoing regulatory uncertainties according to Jill Griebenow, new chief financial officer at Cboe Global Markets.
Griebenow spoke on Cboe Global Markets' second quarter results call on 4 August. She said: "While we are still incredibly committed to the digital business, we continue to watch the regulatory landscape closely and adjust our spending to match the revenue environment."
/jlne.ws/45k19Yq
Part Two: Cboe's blueprint for turbo charging product design
Radi Khasawneh - FOW Global Investor Group
Rob Hocking, Cboe Global Markets' global head of product innovation and the person heading its Cboe Labs innovation hub has said the growth in use of zero-day-to-expiry (0DTE) options has been a consistent theme for the exchange group.
As the pool of players widens out and people begin to test the waters of what is possible in this new short dated environment, changes are emerging in the market behaviour of a wider pool of market participants.
/jlne.ws/451OvNU
Clearing of FX Derivatives to Increase
Anna Lyudvig - Traders Magazine
Derivatives traders and portfolio managers on the buy-side want to see more clearing in a variety of FX instruments, including swaptions, total-return swaps and single-name credit-default swaps (CDS), according to a new research by Coalition Greenwich.
"FX-related instruments, including NDFs and FX options, are near the top of the list," said Stephen Bruel, Senior Analyst at Coalition Greenwich Market Structure & Technology and and author of The Future of FX Derivatives Clearing: Has the Path Been Cleared?
/jlne.ws/3YzPhPS
| | | | | | Regulation & Enforcement | | | Wall Street groups fined $555mn by regulators over messaging violations; Wells Fargo and BNP Paribas among those penalised by SEC and CFTC for record-keeping 'failures'
Stefania Palma - Financial Times
Nine Wall Street companies have agreed to pay a total of $555mn in fines over messaging violations in the latest round of record-keeping charges filed by US regulators. The US Securities and Exchange Commission accused broker-dealers including Wells Fargo and BNP Paribas of "widespread and longstanding failures . . . to maintain and preserve electronic communications", and said on Tuesday it had agreed to receive combined penalties of $289mn from these companies.
/jlne.ws/3s7TYE8
Robinhood Says It's Facing Investigation From New York State
Tanaz Meghjani - Bloomberg
Robinhood Markets Inc. is cooperating with an investigation from New York's top law enforcement office into "brokerage execution quality," the retail trading firm said in a regulatory filing. Representatives for Robinhood and the New York Attorney General's office didn't immediately respond to messages seeking comment.
/jlne.ws/3OpXRfj
| | | | | | Strategy | | | Will CPI Data Move The Market?
Cboe (Video)
In #Vol411, @JoeTigay lets us know that CPI data is coming tomorrow, the S&P 500 Index is down 60 basis points today and more.
/jlne.ws/3qmtmyV
| | | | | | Education | | | Three Big Reasons Why You Should Sell Options
Dr. Jim Schultz - tastylive
There are really only three ways to make money from options: direction (delta), time (theta) and volatility (vega). Yes, interest rates and dividends factor into this equation, too, but the interest rate impact is often negligible and not all stocks pay dividends. So, keeping our focus on the three main drivers makes sense.
/jlne.ws/45gWs1k
| | | | | | Miscellaneous | | | 'Five days? No way': The great office stand-off
Isabel Berwick - Financial Times
It won't be long before everyone returns from summer breaks spent enduring either extreme heat or endless rain. And what awaits us? Bloated inboxes, obviously. And, more excitingly, the latest round of the "RTO vs WFH stand-off".
This does not refer to a mixed martial arts bout but, rather, to the increasingly spicy battle between what Axios calls "aggressive" return to office policies, as favoured by many leaders, and the flexible work from home practices cherished by many workers. Latest data shows offices in 10 US cities are half full. Or half empty, depending on your viewpoint.
/jlne.ws/440rOsc
CFTC's Johnson offers advice to Greenwood Project scholars
Katie Raymond - FIA
On 8 August, FIA helped to facilitate a discussion between Commissioner Kristin N. Johnson of the US Commodity Futures Trading Commission (CFTC) and Greenwood Project high school scholars. The Greenwood Project provides outreach to students interested in pursuing careers in financial services.
/jlne.ws/446XlbM
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