JLN Options: Lockheed options spike before CEO news unexplained so far

Nov 15, 2012

Lead Stories Lockheed options spike before CEO news unexplained so far
Andrea Shalal-Esa and Doris Frankel, Reuters (via Chicago Tribune)
Lockheed Martin Corp said on Wednesday that it could not explain the huge jump in trading in its stock options last week, hours ahead of the surprising news that its incoming chief executive had resigned after admitting to an ethics breach.
http://jlne.ws/TGBNHY
*** Story quotes Livevol’s managing director Ophir Gottlieb: “This is either a one-in-a-thousand random event or suspicious options trading ahead of the announcement.” — SR VIX and VIX ETNs Spike On Fiscal Cliff Fears
Wall Street Sector Selector
VIX and VIX ETNs spiked higher Wednesday as global equity markets continued their decline.
http://jlne.ws/TGABo5 TABB Group Expands Monthly Options LiquidityMatrix(TM) Analysis Covering 10 U.S. Equity Options Exchanges with October 2012 Report
Press Release
TABB Group announced today that it is publishing an expanded, more comprehensive format for its Options LiquidityMatrix(TM), the financial industry’s monthly analysis of options market activity now covering 10 major US equity options exchanges: AMEX; BATS; BOX; CA; CBOE; ISE; NASDAQ ; NASDAQ BX; NYSE ARCA; and OMX PHLX.
http://jlne.ws/UGnHgH ICAP Closes NYSE Floor Trading Operations
Jacob Bunge and Michelle Price, NASDAQ
ICAP PLC (IAPLY) shuttered its New York Stock Exchange floor operations as the brokerage firm tightens its belt following a 25% drop in profits reported Wednesday, according to persons close to the firm.
http://jlne.ws/TGFwFv Trian says has $669 mln in S&P put options
Liz Moyer, MarketWatch
Activist investor Nelson Peltz’s Trian Fund Management L.P. reported a $669.4 million position in put options in the SPDR S&P 500 ETF, and reduced stakes in H.J. Heinz & Co. HNZ, Kraft Foods Inc. (KRFT), Family Dollar Stores Inc. FDO for the third quarter.
http://jlne.ws/TGFeP2 CME Group wins anti-trust regulators’ approval to buy KCBT
Tom Polansek, Reuters
CME Group (CME.O) has received approval ahead of schedule from U.S. anti-trust regulators to buy the Kansas City Board of Trade, although the deal is not yet finalized.
http://jlne.ws/TGAiJO Outdated Account Practices Threaten Clearing Firms, Report Says
Gregory Bresiger, Traders Magazine
Some clearing brokers are operating in the dark, using outdated, account opening practices.
That’s what industry consultant Aite Group warned in a recent report and survey, which argues that that some fully disclosed firms have been falling behind in their methods of operation since the market meltdown of 2008.
http://jlne.ws/UGjRUG

Regulation

CFTC proposes swaps position reports
Gregory Meyer and Stephen Foley, Financial Times
Traders would be able to track the scale of bets in off-exchange interest rate, credit, equity and commodity derivatives under a plan that has been unveiled by regulators.
The US Commodity Futures Trading Commission proposes to introduce futures-style position data for previously opaque swaps in the latest sign of how new rules stand to transform the $650tn over-the-counter derivatives markets.
http://jlne.ws/TLBEW5

Technology

Bloomberg Unveils FX Option Trading Technology
Herald Online
Bloomberg executives today unveiled a new feature that enables clients to trade foreign exchange (FX) options through Bloomberg’s multi-bank trading platform, FXGO. Through the request-for-quote (RFQ) system, market participants can simultaneously request and consolidate pricing from multiple providers for any currency option.
http://jlne.ws/UGlLof TD Ameritrade Upgrades “thinkorswim” Trading Platform
The online brokerage adds features to help options investors better execute covered-call trades.
Theresa W. Carey, Barron’s
TD Ameritrade recently upgraded its sophisticated thinkorswim desktop-trading platform, making a particular bid to win over even more options investors.
Widely available later this month, the “Covered Call Roller” helps automate the process of closing a soon-to-expire call an investor has sold and opening a new position with a future strike date.
http://jlne.ws/U1QNF3 Lightspeed Muscles In On Options Market With New Platform
Justin Grant, Advanced Trading
A little more than a year after buying Greenmoor Financial Group with an eye towards getting into the options trading business, direct market access provider Lightspeed Financial is rolling out an options trading platform.
http://jlne.ws/UGl1zu

Strategy

Calm Down and Exploit Others’ Anxieties
Traders can profit by selling options whose prices are inflated by fears of future volatility.
Bill Luby, Barron’s
One of the defining themes of 2012 has been actual volatility has fallen short of anticipated, or implied, volatility in the options market by the largest margin since 1996—despite the myriad risks to stocks ranging from the fiscal cliff to the European debt crisis.
http://jlne.ws/T3ys9T

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