| | | | | | | March 28, 2025 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Traders see opportunity in the options market as Trump's 'Liberation Day' approaches
Joseph Adinolfi - MarketWatch
Options contracts expiring on or around April 2 are looking surprisingly cheap, stock-market watchers said.
On Wednesday, MarketWatch's Vivien Lou Chen reported on how options weren't pricing in much volatility around April 2, when new tariffs from President Donald Trump are expected.
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Macro Traders From New York to Hong Kong Primed for Tariff Day
VinÃcius Andrade, Carter Johnson and Michael Mackenzie - Bloomberg
From New York to London and Hong Kong, investors are cutting back risk ahead of next week's tariff announcements, while keeping cash ready to pounce the moment opportunities arise. All around the world, money managers say they're turning neutral, stepping back or de-risking their portfolios. Volumes in Treasuries have fallen as traders refrain from taking big positions, with some looking to options trades for insurance before President Donald Trump unveils so-called reciprocal levies next week.
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Bitcoin Options Show Traders Are Hedging Against Drop Back Below $80,000
Sidhartha Shukla - Bloomberg
Crypto traders are flocking to the options market to hedge against further price declines, as President Donald Trump's planned tariff announcements next week keep financial market on edge.
The open interest, or the total number of outstanding contracts, for put options with a strike price of $80,000 is the highest among contracts expiring on April 4, or two days after Trump's promised announcement, according to data from the Deribit options exchange. The rush into puts, which give holders the right to sell within a set period at a specific price, suggests growing demand for downside protection.
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Wall Street straps in for Trump's tariff reveal; sees no end to fog of uncertainty
Saqib Iqbal Ahmed and Lewis Krauskopf - Reuters
U.S. President Donald Trump's scheduled April 2 tariff policy announcement could clear a fog of uncertainty that has clouded financial markets this year, yet few investors expect to get the definitive guidance they seek.
Investors entered 2025 bullish about pro-growth government policies under Trump, but instead the stock market has swooned since his inauguration. Headlines on tariffs whipsawed Wall Street, knocking the S&P 500 as much as 10% earlier this month.
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Wall St dives as fresh data ignites inflation concerns
Pranav Kashyap and Johann M Cherian - Reuters
Wall Street's primary indexes fell sharply on Friday, as data underscored underlying price pressures, stoking fears that the Trump administration's tariff maneuvers could further exacerbate inflationary trends.
A Commerce Department report showed the Personal Consumption Expenditures Price index rose in line with expectations.
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Hong Kong derivatives trading surges to record on turbulent markets, hedge fund interest
Summer Zhen - Reuters
Big swings in stock markets and hedge fund activity have propelled Hong Kong's derivative trading to unprecedented highs. The number of outstanding futures and options contracts on the city's bourse has reached 22 million so far this year, surpassing the record set in 2024 by 70% in less than three months. Analysts and investors attribute the sharp rise in the use of derivatives this year to the craze around Chinese technology firms and the growing use of hedging tools by long-short funds to navigate geopolitical and tariff uncertainties.
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Wall Street Fear Index Rises
George Glover - Barron's
The most widely followed gauge of market fear and uncertainty was rising again Friday, with investors on edge about U.S. President Donald Trump's tariff plans.
The Cboe Volatility Index, which tracks S&P 500 options and trades under the ticker VIX, climbed 1.6% to 19 in early trading. Any reading of above 20 is typically seen as an indicator of relatively high volatility.
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BlackRock Launches Bitcoin ETP in Europe, Marking Key Step for Institutional Adoption Despite Modest Inflows
Ayesha Aziz - CoinMarketCap
BlackRock has launched its iShares Bitcoin exchange-traded product (ETP) in Europe, marking a significant moment for Bitcoin's institutional adoption in the region. The product began trading on March 25 on major European exchanges, including Xetra, Euronext Amsterdam, and Euronext Paris. However, analysts believe that the demand for the ETP in Europe will be lower compared to the U.S. market, where BlackRock's iShares Bitcoin Trust ETF has experienced significant inflows. In fact, BlackRock's U.S. ETF has captured over 50% of the market share for spot Bitcoin ETFs, with its holdings valued at $49 billion as of March 27, 2025.
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| | | | | | Moves | | | Eric Cott is starting a new position as senior business development, sales & partnerships at MoneyShow, he shared on LinkedIn. Cott was with the Options Industry Council for 11 years. ~JJL
Hedge Fund Dymon Hires Ex-Singapore Exchange Senior Executive
David Ramli - Bloomberg
Dymon Asia Capital has hired Lee Beng Hong, the former head of wholesale markets and platforms at Singapore Exchange Ltd., to oversee its treasury, trading and technology functions. Lee will be a partner at the Singapore-based hedge fund, according to a spokesperson for the firm. Dymon Asia manages $4.7 billion in assets.
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| | | | | | Strategy | | | March Volatility Brings Increased Risk and Opportunity
Henry Schwartz - Cboe
U.S. markets experienced a significant shift in sentiment in March as February's late-month decline of 3% rapidly grew into a technical correction of more than 10% for broad averages. This stung equity investors and set off recession alarm bells among analysts and market pundits.
In the options markets, a rapid selloff after a relatively long stretch of calm coincides with an increase in volatility as the equilibrium shifts and uncertainty increases. This impacts option pricing and market dynamics in several ways and may present opportunities for traders who understand these dynamics and can anticipate potential outcomes.
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As Trump's tariff 'Liberation Day' nears, investors are loading up on options and these stocks; 'They're either about to be proven spectacularly right ... or spectacularly wrong'
Gordon Gottsegen - MarketWatch
Tariff news has led to a volatile stock market over the past few months, but retail investors have been happy to use that as an excuse to buy the dip. And as President Donald Trump's April 2 tariff announcement rapidly approaches, those investors are doubling down.
"They're either about to be proven spectacularly right ... or spectacularly wrong," investor-research firm Vanda Research wrote in a note.
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| | | | | | Education | | | Why Fearful Investors Shouldn't Take the VIXY ETF Bait
Markets Insider
You've probably heard of the VIX Index before-it's often referred to as the market's "fear gauge," a symbolic barometer for uncertainty in the stock market. If you're a more seasoned investor, you may have tried investing in one of its indirect proxies: the ProShares VIX Short-Term Futures ETF (VIXY). But here's the thing: the VIX isn't something to be traded casually or opportunistically. It's usually better used as a signal or a tool rather than a trade or an investment.
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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
Editor-in-Chief
| | | Jeff Bergstrom
Editor
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