Goldman Sachs will reportedly offer ether options for clients as the firm expands its crypto-trading business

Jun 15, 2021

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Goldman Sachs will reportedly offer ether options for clients as the firm expands its crypto-trading business
Isabelle Lee – Markets Insider
Goldman Sachs will offer ether options and futures to its clients as the investment bank expands its cryptocurrency trading business, Bloomberg first reported.
“We’ve actually seen a lot of interest from clients who are eager to trade as they find these levels as a slightly more palatable entry point,” Mathew McDermott, head of digital assets at Goldman, told Bloomberg.

Brace for more stock volatility than usual as ‘quad witching’ descends upon markets this week, Fundstrat’s Tom Lee says
Emily Graffeo – Markets Insider
Stocks could face more choppiness than usual during the lead-up to the market’s next so-called quadruple witching event on Friday, warned Fundstrat’s Tom Lee.
In a Monday note, the head of research said that the contract expiration event could have a bigger impact on the market because options activity has nearly doubled since the start of 2020.

Why is Wall Street’s fear gauge so low?
Naomi Rovnick and Eva Szalay – Financial Times
After inflation fears shocked investors in the first few months of 2021, markets have switched into a different mode: a deep slumber.
The Vix, a measure of expected volatility in Wall Street’s S&P 500 equity index, dwindled to a pandemic-era low of 15.7 points on Friday, having surged above 80 during the early stages of the pandemic. A measure of volatility on foreign exchange markets produced by Deutsche Bank also dropped to its lowest point since February 2020 last week.

Did No One Hear JPMorgan’s Jamie Dimon Warn About Trading?
Brian Chappatta – Bloomberg
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon surprised some analysts on Monday by suggesting that trading revenue at the largest U.S. bank will likely reach just above $6 billion in the second quarter, falling short of current estimates.
Anyone who listened to him 11 months ago could have already seen this coming.

World’s Top Oil Traders See Prices Rising Further on Demand
Andy Hoffman and Vanessa Dezem – Bloomberg
Crude prices are likely to rise even higher this year due to growing demand, according to two of the world’s largest independent oil traders.
Brent crude, the international benchmark, has already reached a two-year high of $73 a barrel in London and could rise to $78 later this year, said Vitol Group Chief Executive Officer Russell Hardy. The demand recovery is healthy and consumption will reach pre-Covid levels next year, said Alex Sanna, head of oil and gas marketing at Glencore Plc.

Wild popularity of GameStop and AMC leads to ETF distortion
Steve Johnson – Financial Times
Popular meme stocks GameStop and AMC Entertainment may not seem like the most obvious “value” stocks after the recent surge in their share prices.
The lossmaking video game retailer trades at 35.2 times book value, 10 times its industry median, and at an enterprise value of 381 times forward underlying earnings, 51 times that of its typical peer. Cinema chain AMC’s underlying earnings are forecast to be negative even in the coming 12 months, rendering its financial ratios even harder to perceive as “value”.

AMC short sellers lost $512 mln after Monday’s rally – Ortex
June 15 (Reuters) – Investors shorting “meme stock” AMC Entertainment Holdings (AMC.N) are estimated to have lost about $512 million on Monday after a rally that sent the cinema operator’s shares up more than 15%, data from financial analytics firm Ortex showed.


Cboe to Extend Global Trading Hours for VIX and SPX Options to Nearly 24 Hours, Beginning November 21, 2021
Aims to meet growing customer demand for SPX, VIX options to hedge and manage exposure to broad U.S. equity market and global equity volatility
Move to extend global trading hours expected to complement upcoming planned launch of Cboe Europe Derivatives and the planned acquisition of Chi-X Asia Pacific
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), a market operator and global trading solutions provider, today announced it plans to extend global trading hours (GTH) for its S&P 500 Index (SPX) options and Cboe Volatility Index (VIX) options to nearly 24 hours each business day on Cboe Options Exchange, beginning Sunday, November 21, 2021, subject to regulatory review.

Cboe Global Markets Announces New Community Engagement Program, Cboe Empowers
Cboe Global Markets, Inc.
Cboe Empowers to provide mentorship, scholarship and guidance to under-resourced students from elementary school to college and beyond; Program initially launched in Chicago with support from Greenwood Project, Working in the Schools
Cboe Global Markets, Inc. (Cboe: CBOE), a market operator and global trading solutions provider, today announced the creation of Cboe Empowers, a community engagement program that provides mentorship, scholarship and guidance to under-resourced students throughout their educational journey through access to Cboe’s associates, resources, work environment and other learning and experience opportunities.

*****JJL: Cboe and the CME are in a competition on who can help the Chicago community and its young people more. I am glad to see exchange competition like this.

SEC Delays Review of Kryptoin’s Bitcoin ETF Application
Sam Grant – Coinjournal
The US Securities and Exchange Commission has now postponed the review of three Bitcoin ETF applications.
The SEC sent out a notice detailing that it has delayed its decision-making regarding Kryptoin’s proposed Bitcoin ETF. The agency explained that it had extended the period in which it would make its decision for an additional 45 days.
…Kryptoin had initially submitted its application for approval of a Bitcoin ETF in 2019, but the request has been dormant since. The Delaware-based company amended the initial request, which suggested that it would like to list under New York Stock Exchange to reflect that it seeks to be included in the Chicago Board Options Exchange.


Meme mania pushed Gen Z into the stock market – and now they’re learning investing fundamentals from TikTok and Instagram
Natasha Dailey – Markets Insider
Gen Z was “awakened” to investing amid the meme-stock mania this year, and now they’re turning to social media for advice.
A new report from Fidelity showed more than half of Gen Z-aged people surveyed made a trade in the first three months of 2021 when the meme-stock craze took hold, with GameStop leading the way. Now, the generation of young adults aged 18-24 is wanting to educate themselves, and they’re turning to social media sites like TikTok and Instagram for help.

Options Solutions Appoints Advisory Board
Options Solutions
Options Solutions LLC, a specialized, asset management firm that was created to help high-net-worth investors add conservative options strategies to their portfolios, has appointed an Advisory Board.
The Advisory Board will advise senior management on issues that are critical to the company and its clients, providing additional expertise and insight.

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Past Options Newsletters

The Spread – July 30, 2021

The Spread – July 30, 2021

Earnings season in full bloom; Options lead year-to-date derivatives volume; Robinhood’s IPO; John gets real with Get Real VR: Conflicting factors underpin volatility; Cboe cleared for fall European competition; and the Cboe Options Institute’s Kevin Davitt talks about vega in this week’s “Term of the Week.”

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