QVR’s Volatility Fund Gains 16% in the Dividend-Futures Mayhem
Yakob Peterseil – Bloomberg
QVR Advisors gained 15.7% in its flagship hedge fund strategy in the second quarter, fueled by lucrative bets on beaten-down dividend futures.
The San Francisco-based firm, which has around $150 million across its absolute return fund and solutions business, was one of a handful of players to take advantage of volatility in corporate dividends sparked by the Covid-19 crisis.
JPMorgan’s market guru says stocks can hit new records this summer as hedge funds and quants put $400 billion to work
Ben Winck – Markets Insider
Stocks sit at historically expensive levels but not in the way that matters most, JPMorgan said Wednesday.
Price-earnings ratios remain elevated, but prices relative to bonds are the signals to watch for future market moves, Marko Kolanovic, head of macro quantitative and derivatives research at the bank, wrote in a note to clients. Stocks are currently “quite cheap” by that measure, and the dislocation is directly tied to a decline in bond yields, he added.
Stocks waver as coronavirus outbreaks threaten recovery
Sarah Provan, Bryce Elder and Daniel Shane – Financial Times
Global stocks were mixed on Wednesday while gold tested a nine-year high as investors tracked a surge in coronavirus cases that threatened to undermine economic recoveries across the world.
A final-hour rally in New York pushed the S&P 500 to end 0.8 per cent higher, while the Nasdaq Composite closed up 1.4 per cent for its fourth record-high close in five days. Wall Street’s gain followed a nervy session in Europe, where the region-wide Stoxx 600 ended 0.7 per cent lower and London’s FTSE 100 slid 0.6 per cent.
He had $35,000 in retirement savings in March — 350 trades later and he’s apparently sitting on $1 million
Shawn Langlois – MarketWatch
Prepare for some serious trading FOMO, courtesy of Reddit’s “WallStreetBets” community.
If his detailed story is to be believed, the user, who identifies as “Mori226” on the popular social-media platform, has had a spectacular run during the coronavirus pandemic, and he walked his fellow traders on Reddit through every step of his journey.
“I cracked the 7-figure mark, and then some. I started with $35k in my ROTH IRA in late February/early March,” the trader wrote. He said he pulled out about $50,000 along the way.
Bitcoin Option Traders Bet on Bullish Move Following Volatility Squeeze
Omkar Godbole – Coindesk
While bitcoin has gained 3% so far this week, the overall trading environment remains dull, with volatility hovering at multi-year lows. Ten-day realized volatility, a historical metric, is now at just 20%, the lowest level for two years. That’s “a low that’s only preceded in [September and October] 2018,” the Singapore-based quantitative trading firm QCP Capital said on its Telegram channel. Back in the autumn of 2018, the low-volatility consolidation ended with a big drop to below $6,000. This time, though, options traders are anticipating a breakout on the higher side.
Exchanges and Clearing
Eurex Targets Long End of Euro Yield Curve; New Buxl Options to Launch soon
Julia Bahr – Finance Magnates
Global derivatives exchange Eurex announced today it will introduce Options on Euro-Buxl Futures (OGBX) on 28 September. This euro-denominated product provides market participants with an efficient and cost-effective listed instrument that extends hedging and trading opportunities at the very long end of the interest rate curve, according to Eurex.
CME Globex Notices: July 6, 2020
Equity Index Highlights – July 2020 edition
For the first half of 2020, members and market participants have continued to operate under extraordinary working and living conditions. Their commitment to provide liquidity and facilitate best execution for clients, combined with Eurex’s robust trading infrastructure, has proven vital to the market. Their support was seen through the substantial volume increases in a number of our benchmark products.
Eurex to target the long end of the euro yield curve
Eurex, the global derivatives exchange, will introduce Options on Euro-Buxl Futures (OGBX) on 28 September. This euro-denominated product provides market participants with an efficient and cost-effective listed instrument that extends hedging and trading opportunities at the very long end of the interest rate curve.
Regulation & Enforcement
CFTC Charges California and Colorado Residents in Ongoing Multimillion-Dollar Ponzi Scheme
The Commodity Futures Trading Commission today announced it has filed a civil enforcement action in the Eastern District of California charging a number of individuals and entities with operating a $14.5 million binary options and retail foreign currency (forex) Ponzi scheme. Charged in the complaint are California-based defendants John D. Black and his affiliated entities Financial Tree (d/b/a Financial Tree Trust), Financial Solution Group (d/b/a Financial Solution Group Trust), and New Money Advisors, LLC, and his associates Christopher Mancuso and Joseph Tufo. The complaint also charges Colorado-based defendants John P. Glenn and his law firm, The Law Firm of John Glenn, P.C. In addition, the complaint names seven relief defendants who received funds from the scheme to which they have no lawful entitlement.
A proposal to amend Options 3, Section 3 to conform the rule to Section 3.1 of the Plan for the Purpose of Developing and Implementing Procedures Designed to Facilitate the Listing and Trading of Standardized Options.
TNS Adds CBOE Europe to Market Data Roster
Transaction Network Services (TNS) has signed a new agreement with Cboe Europe, one of the largest pan-European equities stock exchange operators by value-traded, to become a registered vendor for its European equities market data. TNS is offering its connectivity and market data service at the Equinix LD4/LD5 campus, where Cboe Europe’s data center is located, to provide traders with low-latency access for both market data and order routing services.
How to Play a Pre-Election Bull Market in Stocks
Steven M. Sears – Barron’s
Investors are heavily focused on trying to discern the social and economic damage caused by Covid-19. In time, they will turn their focus on November.
There is no consensus on the Street about who will win the presidential election, or even what it means if Donald Trump stays in office or Joe Biden becomes the next president. That’s why investors should focus on what happens going into the election and not just on its result.
(Podcast) OBC 94: Let’s Get Psychological
Options Boot Camp – Options Insider Podcast
Who gets to be reckless on Wall Street?
Emily Stewart – Vox
Regular investors are piling into the stock market for the rush. Wall Street titans say they’re making a grave mistake, but it’s not so simple.