JLN Options: OCC ANNOUNCES JOSEPH CORCORAN AS NEW HEAD OF GOVERNMENT RELATIONS

Apr 3, 2012

Lead Stories

OCC ANNOUNCES JOSEPH CORCORAN AS NEW HEAD OF GOVERNMENT RELATIONS
CHICAGO (April 3, 2012)
OCC announced today that Joseph Corcoran has joined OCC as First Vice President and Head of Government Relations. Mr. Corcoran comes to OCC from NYSE Euronext where he served as Chief Counsel in NYSE Regulation and the Office of Legal and Government Affairs.
http://jlne.ws/HlC1Pi

TVIX Premium To Indicative Value Creeping Back Up?
Seeking Alpha
If you thought the TVIX (VelocityShares Daily 2x VIX Short-Term ETN) story was behind us, you might want to think again.
No, I am not talking about the recent news that FINRA is “looking at the events and trading” associated with TVIX and more generally that the regulator has “a review underway looking at a host of issues relating to ETNs and other complex products.”  Instead, my interest is in the return of some meaningful premium in TVIX relative to its Intraday Indicative Value (a real-time estimate of an ETP’s fair value, based on the most recent prices of its underlying securities) during the last three days.
http://jlne.ws/HlIBom

Index, ETF option volumes near midday
Chris McKhann | optionmonster.com
Total option volume is just 4.7 million contracts so far today as the index and ETF activity is light again, according to optionMONSTER’s data systems.
The SPDR S&P 500 Fund (SPY) has a relatively light total of 392,000 contracts traded, with slightly more puts than calls. The iShares Russell 2000 Fund (IWM) is next up with 280,000, also with a slight edge to puts.
http://jlne.ws/HQvEnd

Exchanges

BATS Equities Market Share Flat, but Options Slump in March
Traders Magazine Online News, April 3, 2012
BATS Global Markets reported its U.S. equities matched market share totaled 10.9 percent in March, unchanged from February, and slightly off from 11.1 percent a year ago. The exchange operator saw an average daily matched volume of 723.3 million shares.
In February, BATS saw an average daily matched volume of 757.5 million shares.
The market share figures come amid the exchange operator’s failed initial public offering on March 23 when a technical glitch forced BATS to withdraw its IPO. Technical problems on the same day as the IPO failure also led to the suspension of trading in technology giant Apple.
The IPO could still happen, perhaps as early as next quarter. Meanwhile, the company’s chief executive Joe Ratterman has stepped down as chairman, though he continues to helm the exchange.
http://jlne.ws/Hc6akD

Regulation

Futures regulator rejects gambling on Obama’s future
* CFTC rejects Nadex’s options on US presidential election
* Political options not in public interest – CFTC
By Alexandra Alper
WASHINGTON, April 2 (Reuters) – The Commodity Futures Trading Commission on Monday quashed a proposal to allow options contracts on the U.S. presidential election, saying such “gaming” was not in the public interest.  The CFTC rejected an application by the North American Derivatives Exchange (Nadex) seeking to list options contracts tied to election outcomes such as the 2012 presidential race or whether Democrats or Republicans will control the U.S. House of Representatives and Senate.
http://jlne.ws/HiUijE

Options Education

THE OPTIONS INDUSTRY COUNCIL ANNOUNCES ‘ROAD TO WALL STREET’ EVENT WITH RUTGERS BUSINESS SCHOOL
CHICAGO (April 3, 2012) – The Options Industry Council (OIC) announced today that the next event in its university outreach program, The Road to Wall Street: Analyze Your Options, will be at Rutgers Business School in Newark, NJ on Friday, April 13. Launched in 2010, OIC’s Road to Wall Street program partners with a university to educate students about options and careers within the options industry. The informative half-day events are designed for students and faculty featuring successful options traders, exchange leaders, other industry professionals and a chartered financial analyst. Topics covered include experiences from the field, how the listed options markets work, where the industry is headed, and how to get started in the options business.
http://jlne.ws/HW2xiK

Seven Guidelines for Covered Call Writing
By Michael Thomsett, Benzinga
The big appeal of covered calls has always been the double-digit annualized return that is not only possible but likely. Gains come from three sources: capital gains on stock sales, dividends, and option premium.
But is it always profitable? No; you can lose money writing covered calls and even experienced options traders can easily overlook this issue. If the stock price rises well above strike, your stock gets called away below market value, so you would have made more profit just owning the stock. However, this does not happen often enough to offset the amazing gains you are going to earn most of the time.
http://jlne.ws/H6yNRo

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