The Spread – August 13, 2021

Volatility eases as summer draws to a close and earnings season ends; Treasury and Eurodollar options perk up on inflation worries; John Lothian delivers a tribute to the late Wayne Luthringshausen and talks market structure; Hong Kong Exchanges and Clearing launches new options; Two economics professors take a poke at stock market bubbles; and tastytrade’s Jermal Chandler talks about theta in the “Term of the Week.”

The following are links to stories and websites referenced in this episode of The Spread:
Volatility 411https://bit.ly/3xJXmm2
Bloomberg — Treasury Traders Bet on Renewed Selloff With Inflation Data Due — /bloom.bg/2XnI6yN
New York Times — Consumer Prices Keep Climbing as Fed and White House Await a Cool-Down — https://nyti.ms/37DD2be 
Bloomberg — Traders Pile Into Tail-Risk Bets That Fed Won’t Hike at All —
/bloom.bg/3fXgVRO
Federal Reserve Bank of Kansas City — Jackson Hole Economic Symposium — https://bit.ly/3jXf9RN
HKEX– HKEX to Introduce Options on Futures contracts — /bit.ly/3CGRT2X
BusinessInsider– 2 leading economists used option prices to identify 20 years of stock market bubbles and build a ‘bubble riding’ trading strategy that beat buying and holding. Here’s how it works. /bit.ly/3CBCl0j
SSRN — Inferring Financial Bubbles from Option Data — https://bit.ly/3jQe1PT

John Lothian Newsletter

Today’s Newsletter

London Stock Exchange to abandon lossmaking derivatives venture

London Stock Exchange to abandon lossmaking derivatives venture

First Read $53,406/$300,000 (17.8%) ++++ Hits & Takes John Lothian & JLN Staff The London Stock Exchange has given notice that CurveGlobal is to be closed effective Friday, the 28th of January, 2022. CurveGlobal's CEO Andy Ross had this to say on LinkedIn...

We visit more than 100 websites daily for financial news (Would YOU do that?)

Past The Spread Episodes

GameStop disappoints; Coinbase gets into it with the SEC; Cboe offers Europe options; MIAX Spikes a record; John’s Take on CBOE’s Phil Slocum’s passing and a great moment in options history; and how to execute a strangle  — The Spread — September 10, 2021

GameStop disappoints; Coinbase gets into it with the SEC; Cboe offers Europe options; MIAX Spikes a record; John’s Take on CBOE’s Phil Slocum’s passing and a great moment in options history; and how to execute a strangle — The Spread — September 10, 2021

– Options markets get ready for fall’s chill as equity prices consolidate; Another perspective on small investors;
– John’s Take pays homage to an options veteran and looks at a moment in options market history;
– Pros and cons of using options strangles with Jermal Chandler in the Term of the Week.

Options Traders Brace for Fall; OCC Sets Record; John’s Take on Financial Journalists; Straddling Uncertainty – The Spread – September 3, 2021

Options Traders Brace for Fall; OCC Sets Record; John’s Take on Financial Journalists; Straddling Uncertainty – The Spread – September 3, 2021

In this week’s options news: Delta variant dents U.S. jobs data; Will fall bring a further equity market correction?; Options volume robust despite dog days of August; Cboe and Nasdaq post near tie for most options traded; A tribute to a departing crypto journalist in John’s Take; and Jermal Chandler explores the use case for straddles in the options “Term of the Week.”

Fed’s Powell Takes Center Stage; New Company Offers Options Solutions; Explaining Volatility Skew – The Spread – August 27, 2021

Fed’s Powell Takes Center Stage; New Company Offers Options Solutions; Explaining Volatility Skew – The Spread – August 27, 2021

In this week’s options news, the Fed’s Jackson Hole pronouncements placate the markets; meme stocks take off on a lark; volatility skew rises as traders remain divided; bitcoin and ethereum options hunker down ahead of expiration and Eurex plans to launch a first; John’s Take looks at a new options business with seasoned players; And Jermal Chandler kicks off this week’s options “Term of the Week” with the important concept of volatility skew.

Pin It on Pinterest

Share This Story