Tech Leads Stock Rebound Before Big Options Day
Rita Nazareth – Bloomberg
Stocks rose in a volatile session ahead of Friday’s options expiration, which is forecast to be the second-biggest in recent history.
Tech shares drove a rebound in equities as giant chipmaker Nvidia Corp. boosted its outlook. Apple Inc. jumped after Bloomberg News reported the company is pushing to accelerate the development of its electric car. Macy’s Inc. and Kohl’s Corp. paced gains in retailers after signaling consumer demand remains robust. The Dow Jones Industrial Average underperformed as Cisco Systems Inc., the biggest maker of computer networking equipment, gave a lackluster projection.
Sharp swings in EV shares draws frenzied options trading
Saqib Iqbal Ahmed – Reuters
Traders are piling into options trades on electric-vehicle makers, drawn by sharp swings in the shares of companies like Tesla Inc, Rivian Automotive and Lucid Group.
On Wednesday, Tesla, Lucid and Rivian made up three of the six most actively traded options names, rubbing shoulders with the likes of Apple Inc and Advanced Micro Devices.
Emerging-Market Investors Rocked in Fateful Day From India to Turkey
Srinivasan Sivabalan – Bloomberg
It’s starting to feel like there’s no place to hide in emerging markets.
In Turkey, the lira plunged to another record low past 11 per dollar after policy makers cut interest rates despite double-digit inflation. In India, the country’s biggest-ever initial public offering flopped on its debut. Stocks in China slid as tech companies disappointed on earnings.
NYSE American Options: *Reminder* Changes to UTP Series and Underlying Index Numbers
As previously announced, on Monday, November 22, 2021, NYSE American Options will modify series and underlying index numbers on the current UTP technology platform in support of the Exchange’s migration to NYSE Pillar in 2022. These updates will ensure that UTP series index numbers are unique from NYSE Pillar assigned index numbers. The changes are currently available for UAT testing on the Exchange’s Enhanced Certification environment and, on Saturday, November 20,2021, will be available for Production testing. Participants are encouraged to test ahead of the Monday Production implementation.
November 2021 CCP12 Perspective on Transparency
The Global Association of Central Counterparties
Transparency is foundational to efficient, fair, and sound financial markets. This paper outlines the views of the Central Counterparties (“CCPs”) across the globe and the best practices that CCPs have adopted over the years to further promote confidence and integrity in the marketplace.
Regulation & Enforcement
Commissioner Stump to Participate in D.C. Bar Fireside Chat
Commissioner Dawn D. Stump will participate in a fireside chat sponsored by the Derivatives and Futures Law Committee and the FinTech Regulation and Enforcement Committee of the D.C. Bar Corporation, Finance and Securities Law Community
Federal Court Orders Florida Man and Foreign Defendants to Pay $7 Million for Role in Fraudulent Binary Options and Digital Asset Scheme
The Commodity Futures Trading Commission today announced that Judge Darrin P. Gayles of the U.S. District Court for the Southern District of Florida issued orders granting permanent injunctions against Daniel Fingerhut, a resident of Miami, Florida, and Itay Barak, Tal Valariola and Digital Platinum Limited (DPL), residents of Israel, and requiring them to pay a combined $7 million in disgorgement and civil monetary penalties for violations of the Commodity Exchange Act (CEA) and CFTC regulations. The orders also impose permanent trading and registration bans on Fingerhut, Barak and Valariola, among other injunctive relief.
It Takes Guts to Play Rivian Options. Here’s How to Do It.
Steven M. Sears – Barron’s
We noted last week that stocks were so robust that it can now be said that pigs—once said to get slaughtered—make more money than bulls or bears.
By Tuesday, as if to test our new axiom, the options exchanges listed Rivian Automotive (ticker: RIVN), one of the world’s hottest stocks. It’s now possible to use just a little money to wager on a company that could be to electric trucks what Tesla (TSLA) is to electric cars.
How to Trade Crypto Options for 30% to 500% Potential Returns
Vicky Ge Huang – Business Insider
Greg Magadini first discovered bitcoin in 2012 when it was still trading at about $7.
As a university student, he did not engage with the cryptocurrency beyond writing a research paper about it. Come 2013, Magadini, who had launched his career as a proprietary trader in Chicago, took a different view when he saw bitcoin surge to $200 from about $13 at the beginning of the year.
Stock-market bears have a narrow window to capitalize on any S&P 500 sell signals
Lawrence G. McMillan – MarketWatch
The S&P 500 index continues to plow ahead, trading at or near all-time highs. The NASDAQ-100 is keeping pace with it pretty well. Other major indexes have started to lag behind, though – especially the Russell 2000.
But what’s more concerning is that we are now seeing confirmed sell signals from breadth and from equity-only put-call ratios. More about that in a minute.
Wall Street Bets on Surging Inflation Could Kill Career of Top Traders
Katherine Greifeld – Bloomberg
God help whoever on Wall Street botches the inflation call.
After a three-decade hiatus, anxiety about rising consumer prices is testing the analytical skills of money managers and professional traders like nothing since the short-lived pandemic panic. The stakes couldn’t be higher: The long regime of mild inflation and low interest rates has helped to drive up stock and bond valuations. Now, with inflation unexpectedly hitting 6.2% in October from a year earlier, something new is on the horizon. A daisy chain of supply bottlenecks has driven prices higher as companies fight to guard their profits and consumer demand remains high. Is it a post-pandemic blip that will resolve itself? Or a sign of more turbulence to come?
CME Group Tour Championship Purse to Increase to $7 Million in 2022
In a ground-breaking moment for women’s golf, CME Group and the LPGA Tour announced today that the prize fund for the 2022 CME Group Tour Championship, the Tour’s season-ending event, will grow to $7 million, up from $5 million in 2021. The winner will receive $2 million, the largest single prize in the history of women’s golf, while all players who compete in the championship will receive at least $40,000.