Observations & Insight
OCC reduces clearing fees; Coinbase CEO sells $292 million worth of COIN shares – The Spread
This week on The Spread, major exchanges begin trading options on Coinbase stock, Eurex announces record volume for ESG derivatives, Gary Gensler is confirmed as head of the SEC, and more.
The Cboe Options Institute is hosting a live one-hour webinar on Wednesday at 12 p.m. ET that will explore how to trade weekly index options. Speakers include Megan Miller, a portfolio manager at Wells Fargo Asset Management, and Oleg Bondarenko, professor of finance at University of Illinois at Chicago. For information on registration for “Tenor, Theta, and Use of Weekly Options,” click here. ~SC
Tesla and 12 Other Stocks Poised for Earnings Fireworks This Week
Al Root – Barron’s
Earnings season is ramping up, with roughly 170 companies in the S&P 500 due to report results this week. That inevitably brings joy and heartache to investors as companies slump and soar following results.
It’s never just the earnings, though. The strength of the reaction to any release is always a function of multiple factors, including company history, the quality of the earnings reported, and analyst and investor expectations.
Liquidity in the bitcoin market should recover quickly after the futures-driven price crash, JPMorgan says
Harry Robertson – Markets Insider
Liquidity in the cryptocurrency market should recover rapidly after bitcoin’s recent tumble, which was worsened by a sell-off in futures contracts, according to analysts at JPMorgan.
The volume of activity on bitcoin exchanges is generally proving more resilient and quicker to recover as time goes on, the analysts, led by Joshua Younger, said. The note was published Wednesday and seen by Insider on Monday.
Rangebound oil prices leave funds on sidelines
John Kemp – Reuters
Portfolio managers increased their exposure to petroleum slightly last week, focusing mainly on Brent, but positions remained rangebound as OPEC+ production discipline was offset by a new wave of coronavirus infections.
Hedge funds and other money managers bought the equivalent of 14 million barrels in the six most important petroleum futures and options contracts in the week ending April 20.
Two names traders are watching as a massive earnings week kicks off
Ernestine Siu – CNBC
Earnings season is in full swing with one-third of the S&P 500 and Dow Jones Industrial Average set to report this week. Microsoft, Boeing and McDonald’s are just a few of the 166 companies on deck. In an interview with CNBC’s “Trading Nation,” Danielle Shay, director of options at Simpler Trading, flagged Caterpillar, which reports on Thursday. Pointing to prior data, she said the stock has high implied volatility, which benefits options traders. “Historically, it moves 1[%] to 3% on earnings and it actually usually pulls back a little bit. But, I’m noticing in the options market, because of the implied volatility, traders could actually come right in and sell premium right at the money for a really good risk reward,” she said.
Exchanges and Clearing
OCC, OIC Announce Joseph W. Sullivan Achievement Award Winner
OCC, the world’s largest equity derivatives clearing organization, today announced that The Options Industry Council will honor the late Joe Levin, former Cboe Vice President, Research and Product Development, who led the development of the Cboe Volatility Index (VIX), with the Joseph W. Sullivan Options Industry Achievement Award. The award will be presented virtually at the 2021 Options Industry Conference on April 28.
OCC Designated as Best Place for Working Parents™ in Dallas
In the wake of the Covid-19 pandemic, family-friendly workplace policies are more critical than ever for minimizing the economic impact on working parents, especially women and people of color. OCC is proud to share that we have earned the Dallas 2021 Best Place for Working Parents™ designation in recognition of our family-friendly policies and practices, reflecting our commitment to working parents and, by extension, their children. Creating an inclusive and welcoming environment for working parents is part of OCC’s Diversity & Inclusion Value and ensures OCC continues to attract, retain and develop talent with a wide range of backgrounds and perspectives.
Fundamentals of Futures & Options (also applicable to Series 3 Exam)
For more than 30 years, IFM has consistently provided learners with a solid foundation and understanding of futures and options markets and trading including terminology, risk management, pricing, and basic trade strategies. This instructor-led virtual course includes lectures from an engaging instructor with real-world expertise and supported by class discussion, practice exercises and educational materials. The course fee includes two must-read industry books, “Futures and Options” and the “Guide to U.S. Futures Regulation.”
Dates: May 10, 2021 through May 14, 2021, 12:00 p.m. to 2:00 p.m.
Location: Virtual Live. 2-hour sessions over 5 days.
Instructor: Marti Tirinnanzi
Class size registration is limited to approximately 20 participants to promote student participation and interaction.
Tenor, Theta, & Use of Weekly Index Options
Cboe Options Institute
This 60-minute webinar explores tenor, theta, and use of weekly index options.
Continuing education (CE) credit available – This webcast is accepted for one hour of CFP, CIPM, RMA, CIMC, CIMA, or CPWA CE Credit for webcast attendees. CFA Institute members may self-document their continuing professional development activities in their online CE tracker.
Date: Wednesday, April 28, 2021
Start Time:12:00 p.m. EST
Duration: 60 minutes
Clearing 101: Exchanges, Clearinghouses and CCPs
Dates: Sep. 15, 2021 12:00 p.m. – Sep. 16, 2021 1:30 p.m.
Location Virtual Live. Two 90-sessions over 2 days.
Instructor: Marti Tirinnanzi
Registration is limited to approximately 20 participants to promote student participation and interaction.
Join us for a short program (90 minutes each day for 2 days) that explains the multilateral systems that provide the infrastructure for transferring, clearing and settling payments, derivatives and other financial transactions among financial institutions and end users. Following Dodd Frank, clearinghouses became designated as Systemically Important Financial Market Utilities, vital to the operations of the financial markets and subject to heightened regulatory scrutiny. Buyers and sellers in exchange transactions rely on clearinghouses to intermediate transactions and to manage credit risks between trading parties. As such, clearinghouses promote transparency, efficiency, and stability by providing market-based pricing, daily settlement, and ensuring adequate capitalization for markets to function.
Q1 2021 ETD Volume
May 5, 2021; 10:00 a.m. to 11 a.m. ET
The webinar will highlight the main trends in trading activity in Q1 2021 in the global exchange-traded derivatives markets, with category and regional breakdowns as well as exchange and contract rankings. The webinar also will feature two guest speakers from UBS discussing the rise of retail participation in the U.S. ETD markets.
A New Virtual Experience
The Options Industry Conference is Going Virtual in 2021. Join OCC and the options exchanges for the 39th annual Options Industry Conference, April 28-29, 2021. While the conference will be held virtually for the first time in its history, the focus will continue to be the key topics facing the options industry today, from the regulatory shifts in the U.S. and Europe to the technological developments that are driving monumental change in markets around the globe.
The Covered Call Options Strategy
Date: Wednesday, May 12, 2021
Time: 3:30 p.m. CT
Duration: 1 hour
Mark Benzaquen – Principal, Investor Education – OCC
For options investors, the covered call is one of the core strategies for income generation, but there are many details to consider before opening a position. On May 12, join The Options Industry Council’s Mark Benzaquen, a former pit broker who now focuses on options education, for a detailed overview of the covered call.
Please Stow Your Outrage About a Capital Gains Tax Hike
Timothy L. O’Brien – Bloomberg
Wealthy Americans are greeting the possibility of a big capital gains tax increase on their investments with “anger, denial and grief,” according to a recent article from my Bloomberg News colleagues. “Over-taxing success is un-American,” Charlie Myers, chairman of Signum Global Advisors and a fundraiser for President Joe Biden, told the reporters.
(Podcast) TWIFO 246: The Rise of Ags
This Week In Futures Options – Options Insider
Host: Mark Longo, The Options Insider Media Group
Co-host: Sean Smith, FTSE Russell