JLN Options: VIX Futures Experience Most-Active Trading Week Ever

Jun 25, 2012

Lead Stories

VIX Futures Experience Most-Active Trading Week Ever
Press Release
CBOE Futures Exchange (CFE) announced today that several trading volume records were set during the week of Monday, June 18 through Friday, June 22, 2012.
Futures on the CBOE Volatility Index (the VIX Index) experienced their most-active trading week ever last week. The record 657,221 contracts that changed hands from Monday, June 18 through Friday, June 22, 2012 surpassed the previous high of 533,430 VIX futures contracts traded during the week of August 8-12, 2011.  In addition, on Monday, June 18, 159,744 VIX futures contracts traded, a new single-day record, eclipsing the previous record of 152,067 contracts on August 5, 2011.  
The record trading activity in VIX futures propelled CFE total exchange volume to a new all-time high.  A record 659,930 total contracts traded last week, topping the 533,639 total contracts traded during the week of August 8-12, 2011.  The most-active trading day in CFE history occurred during the record week as a total of 160,552 contracts traded on Monday, June 18, a new all-time high, surpassing the previous high of 152,133 contracts set on August 5, 2011.

Morgan Stanley shifted derivatives in first quarter
Karen Brettell, Reuters
Morgan Stanley (MS.N) shifted more of its derivatives positions to its U.S. bank unit in the first quarter, as credit rating downgrades from Moody’s Investors Service weighed on its business, data from the Office of the Comptroller of the Currency showed on Friday.

Weeden Bets on Options as Stock Commissions Dwindle
Peter Chapman, Traders Magazine
Weeden & Co, in what has become a trend among stock-centric institutional brokerages, has gone into the options business.
With commissions in decline on the cash equities side of the business, Weeden has assembled a team of four options professionals in order to tap into what is often a distinct commission pool. In doing so, Weeden joins a growing list of small and mid-sized institutional brokers hiring options pros.

Gold Rises Ahead of Comex Options Expiration
Tatyana Shumsky, The Wall Street Journal
Gold futures rallied Monday as investors adjusted their holdings ahead of gold options expiration Tuesday and on U.S. economic data pointing to weaker growth… 
Gold’s rally benefited from investors looking to purchase long gold futures, or bets on higher prices, ahead of the Comex gold options expiration, said George Gero, senior vice president with RBC Capital Markets Global Futures.

Interview with Tony McCormick, CEO of the Boston Options Exchange (Audio)
Options Insider
Taped live at the 2012 OIC Conference, Mark and Tony cover all the hot-button issues of the day, including:
– Going through the process of receiving the SRO
– NASDAQ’s recent competition
– Litigation around the PIP
– Specific updates to the order book
– Retail after-hours trading
– Thoughts on the mini Apple and max SPY
http://jlne.ws/Kzci8l (Audio)

Volatility Discussion with Nobel Laureate Robert Engle (Audio)
Options Insider
Mark and Don have the honor of speaking with Professor Engle on various aspects of volatility.
http://jlne.ws/MvMGO8 (Audio)

OptionMonster Volatility Sonar Report with Jamie Tyrrell of Group1 Trading:

OptionMonster – Wolman on Corn/Oil/VIX with @optionpit Mark Sabastian:


Montréal Exchange: Reduction of SXO Contract Size
Press Release (received via email)
The Montréal Exchange announces the multiplier reduction of the S&P/TSX 60 Index Options (SXO) from C$100 to C$10 per index point on June 25, 2012.
Introduced on September 15, 1999, options on the S&P/TSX 60TM Index (SXOTM) meet the needs of Canadian investors with an interest in the domestic stock market. This index is a benchmark capitalization-weighted equity index of the 60 largest companies in Canada that have the most liquid stocks.

CME Group Appoints Dr. Sung Hee Hong as Executive Director, Head of Korea
Press Release
CME Group, the world’s leading and most diverse derivatives marketplace, today announced the appointment of Dr. Sung Hee Hong as Executive Director, Head of Korea effective immediately. Dr. Hong will be responsible for developing growth opportunities and customer relationships in Korea, and will report to Julien Le Noble, CME Group Managing Director, Head of Asia Pacific.


Playing With Put Options, Or Getting Paid To Go Long
JJ Kinahan, Forbes
In my last article, I wrote about the covered call strategy and how tothink about enhancing returns in a risk-defined manner.  A related strategy, or one that some would look at as the first step in getting themselves into the covered call strategy, is the covered put.


Powering Your Retail Strategies With SPXpm
Press Release
Join CBOE for this special online seminar (a $200 value) at no cost. Options expert and veteran instructor Marty Kearney of The Options InstituteSM at CBOE will lead a comprehensive exploration of SPXpm as a trading tool for today’s successful retail investor and its benefits.
When:  Wednesday, June 27, 2012
Time:  3:30pm CDT
Register: http://jlne.ws/MvMbUj

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