“Alex Perry’s Optionstopia” takes a look at this week’s options news highlights: Cboe, MIAX & OCC Release Trading Volumes; Tesla CEO’s stake in Twitter Sparks Options Bets; Cboe Awards Scholarships
Options News Script
This week: Elon Musk stake in Twitter sparks options bets, exchanges release trading volume reports, and Cboe awards full-ride scholarships.
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.
Twitter options trades ahead of Musk disclosure raise analysts’ eyebrows
Saqib Iqbal Ahmed – Reuters
Tesla CEO Elon Musk has bought 9.2% of shares in Twitter, making him the largest shareholder in the social media company. Musk also plans to join Twitter’s board of directors through 2024. As part of the deal, Musk has agreed not to acquire more than 14.9% of the company’s shares while he remains on the board. Reuters reports that Twitter shares rose 26%, with lots of recent bullish trades in options, including “in call options betting on Twitter shares rising above $43 by April 29.” Reuters also notes that these “well-timed trades in the options on Twitter” are “raising eyebrows” from options analysts because the trades came mere days before Musk announced his stake in Twitter.
Miami International Holdings Reports March 2022 Trading Results
– Year-to-Date Volume Records Across all Exchanges –
MIAX Exchange Group
This week was all about trading volumes and setting records. Kicking off the list of volume reports is the MIAX Exchange Group, which released its March 2022 trading results, reporting that its total year-to-date volume set records across all of its exchanges. The trading group reported that its total U.S. multi-listed options market share “reached 13.8%, up 10 basis points year-over-year (YoY) and representing a 0.8% increase.” The MIAX Exchange Group said that it had collectively executed 121.8 million multi-listed options contracts in March, which represents a 4.2% increase year-over-year and an average daily volume of over 5.2 million contracts.
Cboe Global Markets Reports Trading Volume for March 2022
Cboe Global Markets, Inc.
Not to be outdone, Cboe also reported its March 2022 trading volumes. The total volume for all four Cboe exchanges during the first quarter of 2022 was a whopping 830.3 million options contracts, setting a record for the second consecutive quarter. ADV reached an all-time high of 13.4 million contracts traded per day.
OCC Total Volume for March 2022 Second Highest Month on Record, Up 4.4% Year-Over-Year
OCC via Businesswire
The Options Clearing Corporation (OCC) has set some records of its own, announcing that its year-to-date ADV through March 2022 was 42.7 million contracts, which is up 1.2% compared to ADV of March 2021. The OCC also reported that its total was 943.7 million contracts, which was up 4.4% from March 2021, and is the second-highest month on record.
March 2022 figures at Eurex
Eurex also reported March 2022 numbers, noting that its Equity index derivatives showed the strongest growth among listed derivatives, which was up 36 percent. Eurex announced that the total traded derivatives contracts increased from 195 million to 246.2 million compared to the same month last year and that total contracts traded in equity derivatives grew by 6 percent.
CME Group Reports Q1 and March 2022 Market Statistics
CME Group kept the ball rolling when it released its Q1 and March 2022 market statistics. In the report, CME announced that its overall ADV during the first quarter had increased 19%, with March ADV up 12% year-over-year. Options ADV increased 32%, with a record Q1 Equity Index futures and options ADV, along with Record Q1 SOFR futures and options ADV and open interest.
OIC 2022 Educational Series: Covered Calls, Spreads and Hedging
The Options Industry Council (OIC)
The Options Industry Council will release an educational series of webinars during the second quarter of 2022. April’s presentation is Covered Calls and the “Poor Man’s Covered Call.” May’s presentation is Spread Trading With Options, and June’s webinar is called Hedging With Options.
Cboe Empowers Scholarship
Lastly, Cboe awarded scholarships to five winners of its Cboe Empowers Scholarship program, which will cover the entire cost of attendance for the five Chicago high school seniors who were awarded. This includes tuition, fees, books, supplies, room, and board. When the students arrived at Cboe’s new global headquarters to complete what they thought was their final round of interviews, it was revealed that there was no interview, but rather a ceremony celebrating the winners. It was then that the finalists learned that they were the newest recipients of the scholarships. As a recent graduate with over $80K in school loans, I can tell you that scholarships like these are life-changing, and I’m sure these students will make the most out of this amazing opportunity.
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. Fast approaching is the 40th annual Options Industry Conference, held on May 10-12 in San Antonio, TX.
THIS HAS BEEN ALEX PERRY FOR JLN. THANKS, AND WE’LL SEE YOU NEXT TIME.