“Alex Perry’s Optionstopia” takes a look at this week’s options news highlights: Tesla Stock Plummets after Musk Twitter Takeover; CME Group to Launch Aluminum Options Contract; IDX held in London
Options News Script
This week: Tesla loses $126 Billion in value, CME Group will soon launch an aluminum options contract, and International Derivatives Expo is fast approaching.
This is Alex Perry with John Lothian News, and this is your recap of options and market news from the week. Here are some of the week’s top stories.
Tesla Stock Drop Wipes Out $126 Billion in One Day
Thyagaraju Adinarayan and Esha Dey – Bloomberg
Elon Musk has continued to be in the spotlight and making headlines this month. This week his automaker company, Tesla, reportedly lost over $125 billion in market value only a day after Musk’s Twitter acquisition deal. Earlier this month, Musk bought a nine percent stake in Twitter (at the time making him the largest shareholder), and almost joined the social media’s board of directors…only to forsake the new role and purchase all of Twitter for $44 billion. Bloomberg reports that since April 4th, Tesla’s market capitalization is down more than $275 billion, and the news source attributes Tesla’s sinking stock price to slower economic expansion, persistent inflation, and federal rate hikes.
CME Group to Launch an Aluminum Option Contract on May 23
CME Group announced that it will be launching an option contract on aluminum. CME’s Global Head of Metals, Jin Chang, says that the aluminum markets are expanding, “with a record 4,888 Aluminum futures contracts traded on April 19 and average daily volume in April currently around 1,300 contracts, up over 100% from last year.” The aluminum options are pending regulatory review and are expected to launch on May 23rd.
Q1/2022: Deutsche Börse Group records a strong start to the year
Deutsche Börse Group
Deutsche Börse released its 2022 quarterly statement and started off the year strong. The company’s net revenue increased by 24 percent, which it says is largely due to higher trading activity. The firm also noted that earnings before interest, taxes, etc increased by 32 percent.
JP Morgan to offer clients clearing of CSD index options through ICE; ICE Clear Credit announces the expansion of its index option clearing services to include JP Morgan.
Jonathan Watkins – The Trade
Intercontinental Exchange (ICE) has partnered with JP Morgan in a deal in which JP Morgan will offer clearing services for client-executed Credit Default Swap (CDS) Index Options using ICE Clear Credit, according to The Trade. The Trade also reports that ICE Clear Credit “supports the clearing of CDS index option instruments referencing the major North American and European corporate indices, ”and will allow end-users to “add cleared CDS index options to their risk management strategies.”
International Derivatives Expo
Lastly, the FIA’s International Derivatives Expo will be happening this summer in London. Discussion topics will include European regulation, market structure trends, and oversight of market functions. Early bird prices end on April 30, and the event is from June 6-8 in London.
That’s all for now, but be sure to tune in to this week’s edition of John’s Take. Also, be sure to check out our “Options Term of the Week,” presented by Euronext. Just a friendly reminder that the 40th annual Options Industry Conference is fast approaching and will be held on May 10-12 in San Antonio, TX.
THIS HAS BEEN ALEX PERRY FOR JLN. THANKS, AND WE’LL SEE YOU NEXT TIME.
Term of the Week
TERM OF THE WEEK: This week’s Term of the Week presented by Euronext Knowledge Centre is Intrinsic Value of Cash Settled Options.