LEAD STORIES
VIX Had Smallest Intraday Range Ever!
Wall Street Sector Selector January 11, 2012 3:44 pm
Bill Luby: If ever there was a day to be short the volatility of volatility, it was today. In fact, today established a new record for the smallest (in percentage terms) intraday range for the VIX (NYSEARCA:VXX), a mere 1.14%. For those who are curious (and I know you are out there), the previous record of 1.24% dates from August 29, 2003.
http://jlne.ws/zxrm8M
Traders' New Cry: See You in a Week
By CHRIS DIETERICH, WSJ.com
'Short-Term' Options Bet on a Stock's Action in a Handful of Days Instead of Month; a Volatility Play
It's fast times in the options market.
Demand is soaring for stock options that expire within a week's time, as opposed to the usual monthly expiration. This relatively new style of contract—known as a weekly or short-term option—is cheaper than a monthly option, and it allows investors to quickly dart in and out of the market, taking advantage of sudden moves. The growing appeal of weekly options shows how traders' time horizons are becoming shorter amid high volatility in financial markets.
http://jlne.ws/xOyNWV
NYSE chief 'pretty disappointed' with antitrust ruling
Dow Jones Newswires
12 Jan 2012
The chief executive of NYSE Euronext said that European Union antitrust regulators' analysis of his company's planned merger with Deutsche Börse was "fundamentally flawed," after regulators recommended blocking the deal. Competition authorities that have come to view a planned combination of the two exchange groups' futures markets as a monopoly on European futures and options trade have ignored competing markets in off-exchange derivatives and overseas platforms, NYSE Euronext chief executive Duncan Niederauer said in a video message to his employees.
"I have to tell you I think that's a conclusion that results from a fundamentally flawed technical analysis that ignores the realities of the marketplace that we live and work in every day," Niederauer said in the message, a transcript of which was reviewed by Dow Jones.
http://jlne.ws/xRaaEL
Index, ETF option volumes near midday
Chris McKhann, optionmonster.com
Total option volume tops 5.1 million contracts so far today with mixed sentiment in the indexes and ETFs, optionMONSTER's data systems show. The SPDR S&P 500 Fund (SPY) has 625,000 options traded, 360,000 of them puts. The S&P 500 Index (SPX) contracts have turned over 234,000 times, with 146,000 puts.
http://jlne.ws/zxtt1M
VIX Had Smallest Intraday Range Ever!
Wall Street Sector Selector January 11, 2012 3:44 pm
Bill Luby: If ever there was a day to be short the volatility of volatility, it was today. In fact, today established a new record for the smallest (in percentage terms) intraday range for the VIX (NYSEARCA:VXX), a mere 1.14%. For those who are curious (and I know you are out there), the previous record of 1.24% dates from August 29, 2003.
http://jlne.ws/zxrm8M
Traders' New Cry: See You in a Week
By CHRIS DIETERICH, WSJ.com
'Short-Term' Options Bet on a Stock's Action in a Handful of Days Instead of Month; a Volatility Play
It's fast times in the options market.
Demand is soaring for stock options that expire within a week's time, as opposed to the usual monthly expiration. This relatively new style of contract—known as a weekly or short-term option—is cheaper than a monthly option, and it allows investors to quickly dart in and out of the market, taking advantage of sudden moves. The growing appeal of weekly options shows how traders' time horizons are becoming shorter amid high volatility in financial markets.
http://jlne.ws/xOyNWV
NYSE chief 'pretty disappointed' with antitrust ruling
Dow Jones Newswires
12 Jan 2012
The chief executive of NYSE Euronext said that European Union antitrust regulators' analysis of his company's planned merger with Deutsche Börse was "fundamentally flawed," after regulators recommended blocking the deal. Competition authorities that have come to view a planned combination of the two exchange groups' futures markets as a monopoly on European futures and options trade have ignored competing markets in off-exchange derivatives and overseas platforms, NYSE Euronext chief executive Duncan Niederauer said in a video message to his employees.
"I have to tell you I think that's a conclusion that results from a fundamentally flawed technical analysis that ignores the realities of the marketplace that we live and work in every day," Niederauer said in the message, a transcript of which was reviewed by Dow Jones.
http://jlne.ws/xRaaEL
Index, ETF option volumes near midday
Chris McKhann, optionmonster.com
Total option volume tops 5.1 million contracts so far today with mixed sentiment in the indexes and ETFs, optionMONSTER's data systems show. The SPDR S&P 500 Fund (SPY) has 625,000 options traded, 360,000 of them puts. The S&P 500 Index (SPX) contracts have turned over 234,000 times, with 146,000 puts.
http://jlne.ws/zxtt1M
EXCHANGES
BATS Announces First Primary Listings; Welcomes New iShares ETFs
Leading ETF Issuer to Launch Inaugural Listings on BATS Exchange; New ETFs Based On MSCI Indexes
KANSAS CITY, Mo., Jan. 12, 2012 -- KANSAS CITY, Mo., Jan. 12, 2012 /PRNewswire/ -- BATS Global Markets (BATS), a global operator of stock and options markets, today announced that BlackRock, Inc.'s (NYSE: BLK) iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, will list eight new ETFs on BATS Exchange, marking BATS' first primary listings.
http://jlne.ws/zNrPeX
NYSE Euronext : NYSE Liffe U.S. Named ‘Exchange of the Year’ by Risk Magazine
NYSE Liffe U.S.
-Industry Recognition of the Exchange's Innovative Trading and Clearing Model -
-Highlighting the Exchange's Strategic Vision and Rapid Customer Acceptance -
New York, Jan. 12, 2012 - NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), today announced it was named 'Exchange of the Year' by Risk Magazine in its 2012 Risk Awards. Less than a year after introducing its suite of interest rate futures contracts, NYSE Liffe U.S. has built a competitive exchange platform offering a unique combination of industry-leading technology, capital and operational efficiencies, and ground-breaking innovation. With a product portfolio that includes futures on precious metals, MSCI indices, US Treasuries, Eurodollars and the recently announced DTCC GCF Repo Index contracts, NYSE Liffe U.S. offers value and efficiency through innovative products and services.
http://jlne.ws/yduzY7
STRATEGY
Energy Investing In 2012: How To Come Out On Top In Volatile Markets
ETF Daily News January 11th, 2012
Elliott Gue: With the ongoing EU sovereign-debt crisis conjuring painful memories of the 2008-09 financial crisis for many investors, bigger-picture concerns drove global equity markets in 2011. A surge in market volatility and the increased correlation between stocks reflect the primacy of macro developments over stock-specific news and catalysts.
Volatility is the degree to which a particular stock or index fluctuates in value over time. Many investors monitor the Chicago Board Options Exchange Index (VIX) to gauge the implied volatility of the S&P 500. Higher VIX readings suggest that traders expect market volatility to increase.
http://jlne.ws/wHBXwJ
OPTIONS EDUCATION
OIC ANNOUNCES EQUITY OPTIONS SEMINAR LINEUP FOR WINTER/SPRING 2012
Launches Pilot Seminar on Advanced Strategies
Press Release Chicago (January 12, 2012) – The Options Industry Council (OIC) announced today its seminar schedule for the winter and spring season. Seminars focusing on basic, intermediate, volatility, and options on ETFs topics will be offered as well as a new seminar for experienced traders on advanced options strategies. The pilot seminar will cover vertical spreads, butterflies and condors and will be introduced in Philadelphia, Chicago, and New York in February and March. These free, educational seminars are taught by experienced instructors from the different options exchanges and OIC professionals in a classroom-style setting with the aim of educating investors and financial advisors on the responsible use of options. The seminars run from 6-9 p.m. and advanced registration is required.
http://jlne.ws/z2LZ7n
