Nodal Exchange And Incubex Collaborate To Launch First-of-their-kind Environmental Futures & Options
Nodal Exchange and IncubEx announced today the planned launch of new environmental products including several first-of-their-kind futures contracts in renewable energy credits, renewable natural gas certificates (renewable thermal certificates) and voluntary carbon offsets. The new Nodal Exchange products further expand the world’s largest exchange listed suite of environmental products.
***** Incubex continues to do interesting things with its partners and who knows what will be next.~JJL
Never-Ending Stock Market Churn Keeps Pushing Bottom Targets Lower
Lu Wang – Bloomberg
Week after week of on-the-fly calculations about the intensity of inflation and the likelihood of a recession are preventing markets from finding equilibrium. The churn is spurring increasingly worse forecasts for when and where the volatility will cease.
Turbulence remained the rule Tuesday. After sinking more than 2% earlier in the session, the S&P 500 erased its decline to eke out a small gain. It’s the fourth time in 2022 that the index reversed an intraday drop of that magnitude, more than in any year since 2009.
Bets Against Tech Stocks Finally Win for Short Sellers With $20 Billion Profit
Subrat Patnaik and Ryan Vlastelica – Bloomberg
Betting against tech has become a winning trade, with short sellers sitting on billions in paper profits as growth stocks slump.
A historic rout in the so-called FAANG cohort — Facebook owner Meta Platforms Inc., Apple Inc., Amazon.com Inc., Netflix Inc. and Google parent Alphabet Inc. — has delivered $19.8 billion in mark-to-market profits for investors speculating on declines as of June 30, according to data-analytics firm S3 Partners.
Billionaire investor Ray Dalio’s flagship hedge fund posted gains of 32% in the first half of 2022 even in a broad market decline
Huileng Tan – Business Insider
Billionaire investor Ray Dalio’s Bridgewater Associates posted a 32% return on its flagship fund through the first half of 2022, according to Reuters and Bloomberg, citing sources familiar with the fund’s performance.
Bridgewater, which has about $150 billion in assets under management, is the world’s largest hedge fund.
CME Group Reports Q2 and June 2022 Market Statistics
CME Group, the world’s leading derivatives marketplace, today reported its Q2 and June 2022 market statistics, showing average daily volume (ADV) increased 25% to 23.1 million contracts during the second quarter, the company’s third-highest quarterly volume ever. June ADV increased 30% to 24 million contracts, representing the company’s highest June volume on record.
June 2022 figures at Eurex
Total traded derivatives contracts at Eurex grew by 26 percent in June, from 167.7 million to 210.9 million compared to the same month last year. Interest rate derivatives showed the strongest year-on-year growth, up 42 percent from 57.9 million traded contracts to 82.0 million, while index derivatives grew by 28 percent, from 77.9 million traded contracts to 99.3 million. Total contracts traded in equity derivatives fell by 8 percent to 29.2 million.
Initial Listing of the Physically-Delivered Lumber Futures and Options on
Lumber Futures Contracts
Effective Sunday, August 7, 2022, for trade date Monday, August 8, 2022, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) will list the physically delivered Lumber Futures and Options on Lumber Futures contracts (the “Contracts”) for trading on the CME Globex electronic trading platform (“CME Globex”) and for submission for clearing via CME ClearPort as more specifically described below.
Delisting of Certain Previously-Listed Contract Months and Subsequent Delisting of the Random Length Lumber Futures and Options on Random Length Lumber Futures Contracts
Effective today, Tuesday, July 5, 2022, Chicago Mercantile Exchange Inc. (“CME”) delisted certain previously-listed contract months of the Random Length Lumber Futures and Options on Random Length Lumber Futures contracts (the “Contracts”) as noted in the table below. The Contracts are listed for trading on the CME Globex electronic trading platform (“CME Globex”) as well as for submission for clearing via CME ClearPort. There is no open interest in the delisted contract months.
NYSE Pillar Options: Final Confidence Test, NYSE Pillar July 11th Go-Live Information
Final Confidence Test
On Saturday, July 9th, NYSE Arca Options will conduct the Final Confidence Test ahead of its migration to NYSE Pillar. The script for the July 9th test can be found here. Participants wishing to test can register by contacting firstname.lastname@example.org.
3 Must-Know Ways to Judge Volatility
Volatility is an important measure that can be confusing to new options traders. We’ve talked before about how every option trade is also making a prediction about volatility. Bearish on volatility? You want to be short options or spreads! Bullish on volatility? You want to be long options or spreads!
That sounds good on paper, but in practice, how can you actually tell whether volatility is high or low?
Here are three strategies to do just that.
Euro Sinks to Edge of Dollar Parity as Pros Call It ‘Unbuyable’
Naomi Tajitsu – Bloomberg
With the European economy lurching toward a recession, traders are growing more convinced that the euro breaking parity with the dollar is imminent.
Shorting the euro is one of the most popular trades in the market, and strategists from Nomura International Plc to HSBC Bank Plc have told clients to expect more losses ahead. According to Bloomberg’s options-pricing model, there’s around a 50% implied probability of the currency hitting parity versus the dollar in the next month.
Playing Volatility Ahead Of Earnings Season
Mike Zaccardi – Investing.com
Fasten your seatbelts. Earnings season is about to get underway. We have already heard cautious words from firms such as Meta Platforms (NASDAQ:META), Restoration Hardware (NYSE:RH), and Micron (NASDAQ:MU), just to name a few.
While top and bottom line numbers will remain important, the guidance numbers and comments from management teams will matter the most.
OIC 2022 Educational Series: Reviewing Volatility and Exploring Index Options
The Options Industry Council (OIC)
The Options Industry Council (OIC) is excited to present three brand new, live webinars in the third quarter of 2022, with the first two sessions focused on volatility strategies and the last centered around helping investors understand index options.
OIC begins the quarter with the July webinar, titled Understanding Volatility and Options. In August, the volatility theme continues, this time with an event called Using Implied Volatility to Implement Strategies. Finally, the quarter concludes in September with The Unique Characteristics of Index Options, featuring a review of how these products differ from equity and ETF options.