| August 23, 2021 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
The Spread - August 20, 2021
JohnLothianNews.com
- Will CME Group finally buy Cboe Global Markets?; Options volume outpaces exchange-traded derivatives action;
- Will the Fed taper sooner or later?; Volatility comes back as August options expire;
- John Lothian talks about Cboe sharks, MIAX SPIKES and remembers Philip McBride Johnson; Tastytrade's Jermal Chandler explains why you need to keep a close watch on gamma in the "Term of the Week."
Watch the video »
| | | | | | Lead Stories | | | Trading conditions in $22tn Treasury market worsen ahead of Jackson Hole
Kate Duguid - Financial Times
Trading conditions in the $22tn US government bond market, a bedrock of the global financial system, have deteriorated as traders brace themselves for a key speech this week from Federal Reserve chief Jay Powell.
Liquidity, or the ease with which traders can buy and sell bonds, has worsened as a series of jerky price movements and uncertainty over Fed policy have kept investors from making big bets. Thin trading volumes, with many market participants out of the office in August, have exacerbated the problem.
/on.ft.com/2WfxilI
Treasury Bears Redeemed as Citi, Michael Burry See Higher Yields
Stephen Spratt - Bloomberg
Investors betting on higher Treasury yields are getting affirmation from the likes of Citigroup Inc. and Michael Burry of "The Big Short" fame.
Strategists from Citigroup Global Markets recommend clients position for higher U.S. rates, with the bank seeing 10-year yields climbing to 2% by the end of 2021 on a longer-term economic rebound and Federal Reserve tapering.
/bloom.bg/3sHFebe
Hedge funds' bullishness on oil ebbs away
John Kemp - Reuters
Hedge funds sold petroleum for the seventh time in nine weeks, as rising coronavirus infections in the major oil-consuming markets dampened hopes for an early resumption of long-haul passenger aviation.Hedge funds and other money managers sold the equivalent of 40 million barrels in the six most important futures and options contracts in the week to Aug. 17, taking total sales to 253 million barrels since June 15.
/reut.rs/3B4K9WL
Bitcoin Roars Above $50,000. Strap In for the Ride.
Barron's
Bitcoin is back above $50,000 for the first time since May. Crypto bulls have naturally celebrated the milestone, and there is optimism the world's largest cryptocurrency could climb to fresh all-time highs and beyond. A word of caution, though. The coin's path so far this year is a stark reminder, if one was needed, of Bitcoin's crazy volatility.
/bit.ly/3ja4rbh
Coinbase Stock Climbs Alongside Bitcoin
Laura McCandless - Schaeffer's Investment Research
As Bitcoin (BTC) breaks above the psychologically significant $50,000 level for the first time since May, the shares of cryptocurrency exchange platform Coinbase Global Inc (NASDAQ:COIN) are on the rise as well.
/bit.ly/3sDQW6Z
| | | | | | Exchanges | | | Cboe Futures Exchange to List AMERIBOR Term-30 Futures on September 13, 2021
Cboe
New interest rate futures aim to support market participants' transition away from LIBOR; AMERIBOR Term-30 benchmark designed to serve as "plug in and play" replacement for One-Month LIBOR
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced plans to launch futures on the AMERIBOR (American Interbank Offered Rate) Term-30 interest rate benchmark. The new futures are expected to be available for trading on Cboe Futures Exchange, LLC (CFE) on business date Monday, September 13, 2021, subject to regulatory review.
/yhoo.it/3sDJGYC
Why This Robinhood Analyst Says App Captures Gen Z's 'Zeitgeist'
Shanthi Rexaline - Markets Insider
Robinhood, with 22.5 million active users and capturing about 50% of all new retail U.S. accounts, isn't a "meme stock" phenomenon, Dolev said in a note.
It's rather a singularity that captures Generation Z's "zeitgeist," the analyst said.
While investors worry about Robinhood's high options mix, options accounted for 37% of shares traded but 60% of the revenue mix, he said. This anomaly, Dolev said, is due to options being 2.5 times more profitable than stocks.
"Moreover, the difference in option mix between HOOD and peers may be less dramatic than feared, about 600-700bps ahead of E-Trade."
/bit.ly/3B6K0lS
Chart of the week: Volatility on the rise
Nisha Long - CityWire Americas
The recent spike in volatility has been fuelled by economic and political jitters around the world, including the Taliban's rapid takeover of Afghanistan. Dr. Nisha Long takes a closer look at the ascent of the VIX.
The CBOE VIX index, which measures the markets' expectations for the relative strength of near-term changes in the S&P 500 index, closed at 21.57 on 18 August, a huge rise from 15.59 the week before.
/bit.ly/3D56uFH
| | | | | | Technology | | | kACE partners with Algorithmica to launch FX Volatility Aggregator
Fenics Software Limited
kACE, a division of Fenics Software Limited, an entity within the BGC Partners, Inc. (NASDAQ: BGCP) ("BGC Partners," "BGC" or the "Company") group of companies, announced today the launch of its kACE Volatility Aggregator (kACE VA) application, a collaboration between kACE and Algorithmica, leveraging both organisations' vast experience in FX derivatives and advanced analytical solutions to deliver unparalleled volatility aggregation functionality.
/prn.to/3z9XEUM
| | | | | | Moves | | | Volatility Vet Latest to Launch Crypto Hedge Fund Firm
Investing.com
Popular volatility veteran and equity derivatives trader, Jacob "Jake" Weinig, is set to become the latest institutional investor to launch a crypto hedge fund firm.
Iceberg Bitcoin Income Fund will be looking to open with Bitcoin and Ethereum options.
/bit.ly/3B6WlX2
| | | | | | Strategy | | | VV 460: No Place for the Timid (podcast)
Options Insider Volatility Views
HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MARK SEBASTIAN, THE OPTION PIT
MIAX HOT SEAT: MATT AMBERSON, ORATS
VOLATILITY REVIEW
MARKETS GREEN TO END THE WEEK; TOP TRADES OF THE WEEK IN VIX, SPIKES, VXX AND UVXY; SPIKES FUTURES VOLUME CONTINUES TO GROW WITH ANOTHER RECORD DAY THIS WEEK!; HV IV INDEX VS. COMPONENTS; OPTIONS TRADERS AND THE FEDS JACKSON HOLE MTG; EARNINGS VOLATILITY MATTERS; CRYSTAL BALL -
WHERE WILL VIX/SPIKES BE NEXT WEEK
/bit.ly/3zbriZv
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