JLN Options: Dwindling Options: Volume Flat Through February

Mar 19, 2013

Lead Stories

Dwindling Options: Volume Flat Through February
Andy Nybo, TABB Group
Options trading volume in the first two months of 2013 fell .4%. But the ongoing federal budget debate and the introduction of mini options should prop up volumes in March.
http://jlne.ws/YSvXtc

Mini Options See ‘Respectable’ Start
Kaitlyn Kiernan, The Wall Street Journal
Mini options made their debut Monday, allowing investors to wager on the direction of pricey stocks such as Apple Inc. for about one-tenth of the investment of a standard stock option.
http://jlne.ws/Zb4JdX

The Cyprus Story: Bad News in a Low-Volatility World 
Adam Warner, Schaeffer’s Investment Research
My first thought when I heard of the Great Cyprus Deposit Haircut of 2013 was, “Whatever happened to Garo Yepremian?”
My second thought was, “This matters to me, why?”
http://jlne.ws/11ejtA0

Beware the Doomsday Hype Over Cyprus Bank Crisis
Jeff Reeves, The Slant
Allow me to channel Claude Rains and state that I am shocked — shocked! — that there are hysterics in the financial media over the Cyprus bank crisis.
Who’da thunk it?
http://jlne.ws/WDxvZr

VIX Index Spikes Monday On Cyprus Fear
Wall Street Sector Selector
VIX, the CBOE S&P 500 Volatility Index, also known as the “fear index,” jumped 18.23% on Monday as global financial markets responded to the news of an involuntary bank deposit tax proposal in Cyprus.
http://jlne.ws/YSpyOy

Downward Trend Coming For U.S. Stock Market
Kenneth Rapoza, Forbes
Sell in May and go away.  It’ll be here before you know it.  The sell season in the U.S. equity markets usually begins around April.  That gives equity investors jumping in now maybe 10% more upside, and a larger chance for a downside.  Buy now and you’re buying into the top, warn technical analysts at Auerbach Grayson in New York.
http://jlne.ws/YStrTV

Exchanges

Deutsche Börse Faces Lehman-Tied Claim  
Suzi Ring, The Wall Street Journal
Deutsche Börse AG disclosed that it faces a claim of about €115 million ($150.37 million) that the administrator for an overseas arm of Lehman Brothers Inc. said was paid to the exchange group’s clearinghouse unit on the day the U.S. investment bank filed for bankruptcy protection in 2008.
http://jlne.ws/YSt7o3

NYSE Euronext Launches Mini Options
Press Release March 18, 2013
NYSE Euronext today announced the launch of mini options contracts on NYSE Arca and NYSE Amex, its U.S. options exchanges, in five actively traded securities and exchange-traded funds.
http://jlne.ws/145g1Iz

Regulation

CFTC Wants To Fix The London Gold Fix
Adrian Ash, Forbes
So is the London gold fix a fix? U.S. derivatives-market regulators think it might be.
The U.S. Commodities Futures Trading Commission is no doubt absolutely within its rights to question the use of certain prices as reference points (aka “marks”) in U.S. transactions.
http://jlne.ws/YSoVEO

Committee Wants Common CCP Rules
Traders Magazine
Since central clearing parties will now process most over-the-counter derivatives transactions, every CCP should understand each other and how firms conduct business.
That’s one of the conclusions of the Payments Risk Committee, a committee sponsored by the New York Federal Reserve. It contains some of the biggest banks that have a stake in these controversial contracts.
http://jlne.ws/Yk1HYN

Strategy

The Little Hedge that Could 
Steven M. Sears, Barron’s
Consider taking profits on hedges and adjusting strike prices lower for more stock market pressure.
http://jlne.ws/11fpjB7

Weather the Cyprus Bank Storm with Options 
Michael Shulman, InvestorPlace
Did you ever think the first thing you wanted to read about – concerning your portfolio, your open positions, your travel plans, your mortgage – was Cyprus?  If you say yes, I hope your nose doesn’t grow too big. Yup, the financial powerhouse, Cyprus, is in the news and rattling markets. Why not? It has been calm for too long.
http://jlne.ws/WDA2Tv

Why your choice of S&P 500 ETF matters
J.J. Zhang, MarketWatch
 Without a doubt, ETFs have become one of the most popular financial products available to almost all investors. In the last 10 years, there has been an incredible proliferation of funds from multiple companies such as Vanguard, iShares (Blackrock), SPDR (State Street) and others.
http://jlne.ws/YSx9Nf

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