JLN Options: Growth in Options Trading Helps Brokers but Not Small Investors

May 28, 2013

Lead Stories Growth in Options Trading Helps Brokers but Not Small Investors
Nathaniel Popper, The New York Times
Some of the brokerage firms that helped pique American’s interest in stocks are now luring them into something much riskier: stock options.
http://jlne.ws/15g9atC Kiss the US Listed Options Market Goodbye
Andy Nybo, TABB Group
A proposal to reform the taxation of financial instruments would dramatically change the tax treatment for options strategies, potentially decimating trading volumes by as much as 40%. And it is not the so-called ‘fat cats’ of Wall Street that will be impacted by the proposal; instead, the biggest impact will be felt by asset managers and Mom and Pop investors.
http://jlne.ws/15g6hsN
**”The prospect of the new rules alone is enough to create mind-numbing fear for investors and send chills up the spine of accountants…”   Wow! It sounds scarier than Rosemary’s Baby. -SR Prices Went Splitsville: Volatility Fund to Get 1 for 10 Reverse Split
Brendan Conway, Barron’s
The most prominent maker of fast-trading leveraged exchange-traded funds last week announced next month’s splits and reverse splits. There’s one that stands out: an ETF that’s popular with volatility traders. This one will reduce its share count by 90% next month.
http://jlne.ws/15g570p Making the Most of Volatility
Steven M. Sears, Barron’s
Special Report: Options Roundtable — To celebrate a slew of milestones in the rapidly growing options industry, Barron’s teamed up with the CBOE to host a panel of experts to evaluate the growth we’ve already seen and prepare investors for what’s still to come.
http://jlne.ws/Zrh0Ca Volatility Calmed Amid Worst Loss for Treasuries Since 2010
Liz Capo McCormick and Daniel Kruger, BloombergBusinessweek
The biggest losses for Treasuries in more than two years and disunity among Federal Reserve officials over the pace of economic stimulus are doing little to rattle investors calmed by slowing inflation and too-high unemployment.
http://jlne.ws/15g8mVu VIX readers start to weigh on stock market uptrend
Jeff Greenblatt, Futures
Many of you know me as the guy who nailed the turn of the 2007 bear market six months ahead of time. What I told many of you in April 2007 was an important time window was developing for September/October that had the potential to be the most important turn of the decade. I was wrong.
http://jlne.ws/15g9UPt Economy injects life back into the rally
Maureen Farrell, CNN Money
U.S. stocks surged Tuesday as investors digested stellar economic data that appeared to put the housing and financial crises far in the rearview mirror.
http://jlne.ws/15gi61X How to Build a Hedge Fund 
Michael Shari, Barron’s
Tiny Mangrove Partners defied the odds against success with a strong performance and an understanding of what institutional investors want.
http://jlne.ws/15g8uVb The Use, Misuse, and Abuse of Derivatives
Bud Haslett, CFA Institute
The dark side of derivatives is well known: Speculation and excessive risk can yield staggering losses. But not so well understood are the proper ways to use derivatives.
http://jlne.ws/15g8V1N

Exchanges

CBOE Holdings’ CEO Learns To Innovate Through Teams 
Morey Stettner, Investor’s Business Daily
Ed Tilly began his career on the trading floor. As he worked his way up to market maker, he attributed his success to his ability to make fast, accurate decisions.
A longtime Chicago Board Options Exchange member, he started to join — and eventually chair — CBOE committees. That experience changed his decision-making approach.
http://jlne.ws/ZrhoAz Cash Dividend On The Way From CBOE Holdings Incorporated (CBOE)
Press Release (CBOE)
Looking at the universe of stocks we cover at Dividend Channel, on 5/29/13, CBOE Holdings Incorporated (NASD: CBOE) will trade ex-dividend, for its quarterly dividend of $0.15, payable on 6/21/13. As a percentage of CBOE’s recent stock price of $40.99, this dividend works out to approximately 0.37%.
http://jlne.ws/15ggZ2n

Strategy

A Pivotal Test Looms for Market Leaders
Tyler Craig, InvestorPlace
Despite the elevated angst of market participants, the pullback in the S&P 500 Index has remained quite benign. Sure, it began with an ominous-looking 2% intraday reversal and has boasted higher-than-average volume, but when you survey it from afar, the damage has been pretty contained.
http://jlne.ws/15girlm

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