Volatility Bets Using Exchange-Traded Notes Hit a Record
Nikolaj Gammeltoft & Cecile Vannucci – Bloomberg
Investors trying to protect against declines in U.S. stocks have spurred record demand for securities tracking equity volatility and traded more VIX options than ever before.
Bearish option plays indicate more gold sell-offs ahead
Frank Tang – Reuters
In the gold market, the greater popularity of bearish option bets over bullish ones suggests that the precious metal is more likely headed for another tumble instead of a sharp rally.
Videocast: What’s driving volatility now
Was the Options Market Right on Tesla Motors Inc (TSLA) and Groupon Inc (GRPN)?
Standard deviations, timing accuracy, and trading around earnings
Adam Warner – Schaeffer’s Investment Research
There seems to be a lot of confusion regarding how we get these implied earnings reactions, what they mean, et al. So let me do some explaining, with the help of some tweets of mine and some Twitter questions I received.
Why We Could Easily Have Another Flash Crash
Deborah L. Jacobs – Forbes
It’s been a great year for the stock market, which could make some investors complacent or overly confident. Before you run with the bulls, read the guest post below by Brian Korn, and Bryan Y.M. Tham, securities lawyers with Pepper Hamilton. They explain why our markets aren’t safe from a flash crash. Let stock buyers beware.
Routing to the new markets
A multitude of new trading venues launching in the derivatives markets are challenging trading systems designed to deal with specific markets, finds Dan Barnes.
5 signs Wall Street’s zombie apocalypse is at hand
Commentary: Undead money pros mindlessly repeating upbeat phrases
Brett Arends – MarketWatch
“Please help me. I have just finished watching ‘The Walking Dead’ on AMC and ‘World War Z’ in the cinema, and I’ve started to suspect that my money manager may be a zombie. I’ve been watching business TV and I think a lot of the people on Wall Street must be zombies as well. How can I be sure? Are there any tell-tale signs?”
Buyside Traders Want SEC to Press Exchanges and Dark Pools for Information
Peter Chapman and John D’Antona Jr. – Traders Magazine
Buyside traders want the Securities and Exchange Commission to wrest information about the inner workings of exchanges and alternative trading systems from their operators.
That was the consensus of traders from 37 buyside desks that participated in a workshop put together by broker-dealer Bloomberg Tradebook.
JPMorgan Nears Settlement With SEC on London Whale Loss
Dawn Kopecki & Joshua Gallu – Bloomberg
JPMorgan Chase & Co. (JPM) is negotiating final terms of a deal with U.S. securities regulators to end a yearlong probe of derivatives bets that led to the bank’s biggest trading loss ever, two people briefed on the talks said.
Determining the Correct Position Size with Options – Know Your Options
Zacks.com (via NASDAQ)
Today I want to talk about how to determine the correct position size for options.
There are actually several different ways, but I have found the ones below to be the most useful. Plus, it’s what I do in my own trading.
The Fed’s Bernanke is Having His Cake and Eating It Too
Dan Passarelli – The Options Insider
The market simply can’t keep going up forever with disregard to economic news. Sorry. It just can’t. At some point, it is time to pay the piper.
Be the piper.
How To Trade Binary Options With Each Asset Class
Andri Yanto, FX Empire
If you are new to binary options trading world, you will find it a little bit challenging in the beginning to decide as to which one of the asset classes should be selected for executing trades.
A Bullish Options Strategy With the Clock On Your Side
I want to discuss today an investment strategy combining stock and options that takes great advantage of time decay. It is absolutely a bullish options strategy with limited downside protection and some upside risk. I am illustrating this strategy, which is quite popular with Dutch asset managers, among others, as a way of lowering the investment cost of a stock by selling both puts and calls.