Citi Launches Intelligent Options Algorithms

  Citi has added intelligent options algorithms for U.S. equity options to its suite of advanced electronic trading strategies. The algorithms are intended to provide traders with speed, liquidity and the desired degree of exposure, using Citi’s proprietary smart routing logic, which provides liquidity and price improvement while avoiding information…Read More

7 September, 2012

Collaring Multiple-Asset ETFs to Manage Tail Risk

Courtesy of Phil Gocke, Options Industry Council Since the 2008-09 financial crisis and the central bank’s response of near zero interest rates, financial markets have been vacillating violently between risk-on and risk-off periods. This bipolar attitude toward risk has increased asset class correlations, negating the effective benefit of many traditional…Read More

8 August, 2012

Options Trading is Not Dead, Institutions Ramping Up

Courtesy of TABB Forum Options trading volumes may be down across the industry but the buy side continues to remain captivated by the potential of using options. TABB Group expects options volume to decline by as much as 10 percent in 2012, yet a combination of greater buy-side adoption and…Read More

3 August, 2012

What’s Next? Single-Stock Futures. Here’s Why..

  Industry Pro Thomas Halikias contributed the following "Single Stock Futures...A New Dawn?" to Tabb Forum. Excerpted version is below, full article available by clicking on Tabb's logo.. In nearly every conversation about single stock futures – and they’re happening more frequently than ever these days – several typical misconceptions…Read More

30 July, 2012

Taker-Maker Cupcake Baker- Nasdaq BX Options Fee Scheme Takes…

  Courtesy of Peter Chapman/TradersMagazine The launch of the Nasdaq OMX BX options exchange, at the end of June, marked not only the debut of the industry’s 10th exchange, but an expansion of the use of taker-maker pricing. In contrast to the conventional maker-taker pricing model whereby exchanges pay liquidity…Read More

25 July, 2012

ISE Lifts a Leg: Plans to Introduce Yet Another…

The International Securities Exchange (ISE), the venue that bills itself as the first all-electronics options exchange in the United States will open a second by year’s end. The company has has filed a Form 1 application for a second exchange license with the Securities and Exchange Commission. No details about…Read More

5 July, 2012

New Rules: NASDAQ Options Exchange (NasdaqBx) To PAY Takers…

Courtesy of Peter Chapman TRADERS Magazine interview with Nasdaq OMX EVP Eric Noll unveils a new tact in the ever-changing world of major exchange strategies to attract order flow. In this case, NasdaqBx is up-ending the current industry "make-take" fee model whereby exchanges pay rebates to market-makers who improve prevailing…Read More

8 June, 2012

In Volatile Markets, Pensions Rediscover Covered Call Options

by Rosalyn Retkwa Writing covered call options against a portfolio of stocks to get extra income and hedge against downside risk isn’t new — not to individual investors, who’ve been doing it for decades. But to pension fund managers, “historically, covered call writing programs have always been considered a marginal strategy,” says…Read More

4 June, 2012

AlphaClone ETF Invests In Hedge Fund Equity Positions

  The AlphaClone Alternative Alpha ETF (ALFA), which began trading on Thursday, will invest in disclosed equity positions held by established hedge fund managers—the first ETF to do so. The new ETF “seeks to capture alpha from these managers’ long positions while protecting against protracted market downturns through a dynamic…Read More

31 May, 2012

Black Swan ETFs Debut

by Michael Johnston on May 31, 2012 Innovation in the ETF industry has become standard over the past several years, with countless first-to-market products opening up new asset classes and strategies. And it turns out that the U.S. isn’t the only place where product development is going full throttle; our…Read More

31 May, 2012

The Pros and Cons of Options Exchange Proliferation ::…

Good op-ed courtesy of TabbForum re: debate about whether having yet more options exchanges makes sense, or is just plain silly. The Pros and Cons of Options Exchange Proliferation :: TabbFORUM - Where Capital Markets Speak.Read More

29 May, 2012

As Market Sagged in Q1, Many Hedge Funds Held…

  It is no secret hedge funds have been using exchange-traded funds (ETFs) to make directional bets on a broad market index or a specific industry group. They frequently buy "call" options or hedge with "put" options. Sometimes they hedge by shorting the funds outright. This said, one of the…Read More

23 May, 2012

What’s Next?..Options Trading On Facebook (FB)

Options on Facebook (NASDAQ: FB) will be available as early as May 29th. With volatile price action in FB after its IPO, traders will look to options strategies to profit In the next several months FB is going to face pressure to grow into its current 100 Billion dollar valuation.…Read More

18 May, 2012

Covered Call Portfolios-Lower Volatility, Better Performance

For those not aware, the bloom is off the rose right now as equity markets are on track to record the biggest string of down days in a long time.  With the media distracting every investor re: FB's IPO, the fact is, equities markets in general are confounding long-only fund…Read More

17 May, 2012

Institutional Investors Increase Use of ETFs, says Greenwich Associates

At first used by Institutional Investors for manager transitions, rebalancing and other tactics, fund managers strategic use of ETFs are on the rise, in particular to gain long-term exposure to desired asset classes, according to a freshly-published study by Greenwich Associates. In the hot-off-the press study, "57% of institutional ETF…Read More

17 May, 2012

UofMass Study: Option Collar Strategies Deliver Better Performance With…

As reported by Pension&Investments Magazine, a newly-published research report from the University of Massachussetts has found options-based collar strategies would have outperformed the market in most asset classes, while providing drastically reduced risk leading up to the 2008 financial crisis, AND as well, throughout the subsequent recovery. “The contagion across…Read More

4 May, 2012

UK’s Abydos Hedge Fund Using Options to Prepare for…

(Reuters) - Abydos Capital, a new hedge fund run by a former partner at one of London's most high-profile oil investors, is worried about a potential military strike against Iran and plans to use options to protect his portfolio. Jean-Louis Le Mee, Chief Investment Officer of Abydos, told Reuters he…Read More

27 April, 2012

Sponsors Scout Buying Options within SMAs

    A little-used and relatively obscure investing strategy – buying options within a separately managed account – has made a bit of a stir in recent months, with a spike in product development talks between asset managers and platform sponsors, mostly for the strategy’s potential to address advisor and…Read More

26 April, 2012