VIX: Has Vol-of-Vol Stopped Working?
Jared Woodard, The Street
One of the phenomena we have focused on a lot in our CBOE Volatility Index (VIX) trading over the last few years is the volatility of volatility.
http://jlne.ws/XolTsr The VIX Index Rises As Reality Sets In: Weekly VIX ETF Report
Wall Street Sector Selector
The VIX Index (but not VIX ETFs) appeared to be reacting in fear to the declining equity markets. The NASDAQ’s 2% slip, the Russell 2000′s 1.7% slip, and the S&P 500′s 1% slip likely did not quell investor fears, as it appears by and large that the major indexes are slipping away. More than likely, the VIX Index will continue to rise so long as major indexes continue to fall.
http://jlne.ws/XoiQAk Fear Is Ever-So-Slightly Creeping Back Into the Market
Kaitlyn Kiernan, The Wall Street Journal
A look at the stock market’s so-called fear gauge shows investor anxiety is on the rise.
The Chicago Board Options Exchange’s Volatility Index moved to its highest level intraday in a month Friday after a dismal jobs report rekindled questions about the pace of the U.S. economic recovery. The VIX jumped as much as 13% to 15.65 before paring the rise later in the day.
http://jlne.ws/16IFmqH Living in Bizarro 0% Interest World with the TLT and VIX
Andrew Giovinazzi, The Options Insider
I know things are goofy when I have a backspread in the VIX for our Strategy Letter going into the NFP and the long side did nada Friday. With the VIX up around .49 near the end of the session and with the selloff there was zip for follow through in volatility.
http://jlne.ws/16IG1Z4 Uh Oh: The Attempt to Regulate Swaps Is Failing
John Carney, CNBC
It’s hardly surprising to hear that some of the largest derivatives brokerages are looking to set up futures exchanges. A huge portion of the traditional business these brokers did is in the process of migrating out of swaps and into futures.
http://jlne.ws/XojxK1 Livevol Unveils Powerful Custom Scans in Livevol Pro™ Attractive and Actionable Trading Opportunities Quickly Identified
Press Release (Livevol)
Livevol, a leading derivatives financial technology firm recognized for their expertise in the equity options marketplace, released its latest version of their flagship option analytics platform today, Livevol Pro, with two new tools that give clients powerful market scanning capabilities.
http://jlne.ws/16IHIFU Want to Hedge Up Financials or Tech Funds? No Time Like the Present, Says MKM
Brendan Conway, Barron’s
Corporate earnings season is upon us, and the market isn’t very demanding — not if your measure is analysts’ earnings estimates.
http://jlne.ws/16IHVZN Ex-Finra Employee Claims He Was Fired for Whistle-Blowing
Bob Van Voris, Bloomberg
A former Financial Industry Regulatory Authority employee filed a whistle-blower suit in federal court, claiming he was fired after detecting a flaw in a Finra’s risk-rating system that allowed large broker-dealers to be over-leveraged.
http://jlne.ws/10KFsug Corruption at Hedge Funds Even More Rampant Than You Think, Study Shows
Susan Adams, Forbes
If a new report about hedge fund corruption is to be believed, the industry is overrun with unethical and illegal activity. Some 46% of people at hedge funds believe their competitors break the law or act unethically and 30% say they’ve seen wrongdoing themselves.
ExchangesHere’s Why CME’s Extended Hours Trading Is Unlikely To Return
When IntercontinentalEchange (NYSE:ICE) announced last year the launch of grain and oilseed futures contracts that would trade for 22 hours every day, the CME Group (NYSE:CME), which dominates the trading in these derivative instruments, was quick in declaring an extension of its own trading cycle, from 17 hours to 21 hours a day, to prevent losing marketshare to ICE.
RegulationPrice Bands Take Effect Today on ‘Tier 1’ Stocks
Tom Steinert-Threlkeld, Traders Magazine
Limits on how far down or up stocks can move in a five-minute period start to take effect today.
First up: “Tier 1” stocks in the Standard & Poor’s 500 Index and the Russell 1000 Index, as well as certain exchange-traded products. All National Market System stocks in this tier will be subject to bands on how far their prices can move over short periods of time, by approximately July 8.
StrategyA Hot Potato That Glitters
Steven M. Sears, Barron’s
How to trade the volatility in gold prices.
Some savvy investors have said gold is the ultimate Internet stock, and last week it actually began to behave like one.
http://jlne.ws/16IFczw Beware Of Covered Call Funds
John Dowdee, Seeking Alpha
Covered Call Closed End Funds (CEFs) have mouth-watering distributions ranging from 7% to 10%. This article will analyze the total return associated with covered call CEFs to assess if these yields are “too good to be true”. But first, I will provide a quick tutorial on covered calls for the investor that may not be familiar with this class of assets.