The Spread: Home, Sweet Home

Suzanne Cosgrove

Suzanne Cosgrove

Editor

 

This week on The Spread, Cboe and the CME Group announce new “mini” products, LedgerX announces a new volatility index for bitcoin, and more.

Produced by Mike Forrester.

Transcript:

Welcome to The Spread, where we’re finally back in the studio! I’m Matt Raebel. We’ve got a lot of news this week, but first, a quick correction: last week I flubbed when I said the OCC cleared 693 thousand contracts in June. It was actually 693 million contracts. Sorry for any confusion.  Seems like bitcoin options have become quite the hot commodity in the world of cryptocurrency; the Singapore-based cryptocurrency exchange Huobi and the Cayman Island-based Gate.io announced this week that they were going to begin offering options trading to their customers. Meanwhile, LedgerX announced the launch of a new index that tracks the volatility of bitcoin using bitcoin options prices from exchanges like Deribit. What’s going on? It’s almost like there’s some huge need for hedging instruments in the cryptocurrency markets! The bitcoin index is called BitVol, and it was developed by the folks at T3 Index, the creators of the SPIKES Index. You can read more about it on John Lothian News dot com. Speaking of which, John Lothian himself wrote an article this week declaring his support of IEX’s D-Limit Order Type, which I would be remiss not to mention as well because John signs my checks. While we’re at it, this week JLN’s Sarah Rudolph published another edition of JLN’s “Unsung Heroes” series – a Q and A with the CME Group’s COO Julie Holzrichter. JLN Editor Thom Thompson and Contributing Editor Suzanne Cosgrove also have new stories up this week about the cannabis industry and ESG investing, respectively. You can check those out at the same place. On Monday Cboe announced that the Cboe Futures Exchange is set to launch Mini VIX Futures on August 10. They’re one-tenth the size of your standard VIX future, but twice the fun! I don’t actually know if that last part’s true because things like that depend on who you ask. A day after that announcement broke, the CME Group announced that they had a new mini derivatives product of their own launching on August 31 – Micro E-mini Options! That is to say, options on its Micro E-mini S&P 500 and Micro E-mini Nasdaq-100 futures contracts. What is it about miniature versions of things that people like so much? Mini Snickers bars, mini Coopers, mini Yorkshire terriers…well, I guess mini derivatives contracts let you adjust your exposure with more granular detail. Agh…now I can’t stop thinking about miniature dog breeds. By the way, don’t forget that MarketsWiki Education World of Opportunity 2020 is next week! It’s free to registered participants, so if you haven’t signed up already, check out the link below this video. It’ll take you straight to our EventBrite page where you can get registered before you can say MarketsWikiEducation. That’s it for The Spread this week, thanks for watching – feels good to be back in the studio.  We’ll see you next week – until then, happy trading.

Sign Up for MarketsWiki Education World of Opportunity 2020 here!

Sources:

Gate.io, Huobi Enter Booming Crypto Options Scene
Paddy Baker – Coindesk
https://bit.ly/3j0Vn6z

LedgerX is taking another shot at a bitcoin fear gauge
Frank Chaparro – The Block
https://bit.ly/2ZpGAKI

How T3 Index’s “VIX-Like” Index for Bitcoin Works
Matt Raebel – JLN
https://bit.ly/2Zw5KI0

The D-Limit Order Type of IEX Has My Support
John Lothian – JLN
https://bit.ly/2B4Sb8V

Unsung Heroes Series: Q&A with CME Group COO Julie Holzrichter
Sarah Rudolph – JLN
https://bit.ly/2ChoH8j

CME Group Announces Aug. 31 Launch of Micro E-mini OptionsA
CME Group
https://bit.ly/3j1w9EZ

John Lothian Newsletter

Today’s Newsletter

The Spread – July 30, 2021

The Spread – July 30, 2021

Earnings season in full bloom; Options lead year-to-date derivatives volume; Robinhood’s IPO; John gets real with Get Real VR: Conflicting factors underpin volatility; Cboe cleared for fall European competition; and the Cboe Options Institute’s Kevin Davitt talks about vega in this week’s “Term of the Week.”

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

Past The Spread Episodes

The Spread – July 30, 2021

The Spread – July 30, 2021

Earnings season in full bloom; Options lead year-to-date derivatives volume; Robinhood’s IPO; John gets real with Get Real VR: Conflicting factors underpin volatility; Cboe cleared for fall European competition; and the Cboe Options Institute’s Kevin Davitt talks about vega in this week’s “Term of the Week.”

The Spread – July 23, 2021

The Spread – July 23, 2021

Volatility makes a return appearance as the Delta variant jangles nerves; Treasury bond yields perk up; July options expire; John Lothian chats with Cboe’s Ed Tilly about a World of Opportunity; UBS and SEC reach a settlement; FIA Tech expands; and the Options Institute’s Kevin Davitt explains why contract size matters in the “Term of the Week.”

The Spread – July 16, 2021

The Spread – July 16, 2021

Options traders torn between higher Inflation and steady Fed policy; June market share up at MIAX; John Lothian talks about a World of Opportunity; SEC charges binary options shop with fraud; Moscow Exchange set to offer quarterly options on U.S. stock index futures; and the Options Institute’s Kevin Davitt talks about implied volatility in the “Term of the Week.”

The Spread – July 9, 2021

The Spread – July 9, 2021

Chicago, a data destination; SEC, Robinhood and payment for order flow; John Lothian weighs in with his take; Retail trading continues to percolate; and Cboe’s Kevin Davitt explains the differences between equity and index options in the “Term of the Week.”

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