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The article from Bloomberg.com discusses how Donald Trump's presidency is expected to increase market volatility, leading to a surge in options trading driven by retail investors. Companies like CQG and Trading Technologies International Inc. are preparing to capitalize on this trend by offering more options products. Retail investors are becoming more sophisticated in their trading strategies, with a growing demand for options not only in the US but also in regions like India and Asia. The industry is moving towards trading 24/7 to accommodate this international growth. [Extracted from the article]

Options traders are unwinding bullish wagers on US stocks due to concerns about slower interest rate cuts, halting the stock rally that followed the presidential election. Traders who bought puts on the Cboe Volatility Index are seeing payoffs as volatility decreases. The focus has shifted to interest rates, earnings, and the new administration, leading to a 2.1% loss in the S&P 500 Index last week. Investors are reducing exposure to big tech stocks and making speculative bets on biotech and consumer staple food stocks in response to uncertainty surrounding the new administration's policies. [Extracted from the article]

Options markets are predicting earnings-day movements for major tech companies like Apple, Microsoft, Amazon, Meta Platforms, and Alphabet that align with historical trends, indicating limited demand for protection against potential selloffs. Meta Platforms stands out with a significant difference between implied and past moves due to its past volatility. Investors are closely monitoring these earnings, as these companies make up over 20% of the S&P 500 index, amidst upcoming market-moving events like the US presidential election and Federal Reserve meeting. While Apple and Microsoft have seen discrepancies between implied and actual swings in the past, Meta has often exceeded implied moves by a significant margin. Additionally, Nvidia Corp.'s capital spending outlook will be of interest to investors, as these tech giants are major contributors to the chipmaker's sales. Goldman Sachs' derivatives sales trading desk suggests that the technology sector is attractively priced as earnings season and the US election approach. [Extracted from the article]

Capri Holdings Ltd. saw a significant drop in shares by over 50% after a judge blocked its proposed merger with Tapestry Inc., causing put options with a strike price of $25 to increase in value to potentially over $2 million. Over 4,500 put options were open, allowing holders to sell 450,000 shares, with more than 2,300 contracts changing hands in a single day. The sudden increase in value also affected longer-term options, such as the $25 puts expiring on Nov. 15. [Extracted from the article]

Capri Holdings Ltd. put options, initially of little value, surged to potentially over $2 million as shares plummeted by over 50% following a judge's decision to block the company's merger with Tapestry Inc. Over 4,500 put options were open at $25, with more than 2,300 contracts traded, some for 5-10 cents each. The sudden drop in share price to around $20 could see these contracts valued at over $5 each, indicating a total potential worth exceeding $2 million. Additionally, longer-term options at $25 expiring on Nov. 15 have also seen a significant increase in value. [Extracted from the article]

CNX Resources Corp., a natural gas producer, saw its stock reach a 10-year high this week. Options trading in CNX surged as investors bought over 34,000 call options, giving them the right to buy more than 3 million shares at $40 by mid-April. Despite natural gas futures slipping, CNX's stock advanced 5.1% on Friday to $36.52, the highest since July 2014. The Energy Information Administration predicts that colder weather will boost home consumption of natural gas by about 5% this winter. Additionally, a Sterling Capital fund opened a small position in CNX in the last quarter. [Extracted from the article]

Trump Media & Technology Group's share price has more than doubled since late September, leading to an increase in bullish options bets. Investors have been buying call spreads and selling put spreads expiring in mid-November, after the US presidential election. The fate of Trump Media's shares may be tied to the election results, which currently show Vice President Kamala Harris with a slight lead over former President Donald Trump. Trump Media's stock has been volatile since going public in March, and its 30-day realized volatility is higher than Bitcoin and GameStop. [Extracted from the article]

Short-term options on China-linked ETFs traded in the US have reached record highs as shares continue to rally ahead of the reopening of onshore markets after a week-long holiday. Implied volatility for options on the Xtrackers Harvest CSI 300 China A-Shares ETF, iShares China Large-Cap ETF, and KraneShares CSI China Internet ETF have all surged. Call options on these ETFs are also seeing increased demand, with the iShares China Large-Cap ETF one-month calls reaching the highest premium over bearish contracts since 2008. Some investors are rolling profitable positions higher as the ETFs have experienced significant gains in the past two weeks. However, there are also signs of investors buying put options to protect against a potential drop in prices. [Extracted from the article]

Oil futures experienced a significant increase in value last week, with the options market also seeing a surge in activity. Concerns over a potential price spike led to a rise in call skew on second-month West Texas Intermediate futures. Traders who had previously taken bearish positions on crude oil reversed their positions due to escalating tensions in the Middle East, leading to increased demand for insurance against price surges. The bullishness in the oil market has exceeded that of producers, who may only benefit if prices remain high for an extended period. [Extracted from the article]

Oil futures experienced a significant increase in value last week, with the options market also seeing a surge in activity. Concerns over a potential price spike led to a rise in call skew on second-month West Texas Intermediate futures. Traders who had previously taken bearish positions on crude oil reversed their positions due to escalating tensions in the Middle East, leading to increased demand for insurance against price surges. Traders also purchased December calls on Brent crude, betting on oil reaching $100 or higher. The bullishness in the oil market has exceeded that of producers, who may only benefit if prices remain high for an extended period. [Extracted from the article]

According to market flows, the upcoming US presidential election is not a major factor contributing to the current high volatility in US equity options. Instead, concerns about the US economy and Federal Reserve interest-rate cuts are more prominent. The good performance of benchmark equity indexes has also led to increased demand for protection, contributing to the volatility. Investors are focusing on nearer-term occurrences, such as US jobs data, rather than hedging far in advance for the election. Despite the closely contested election, there hasn't been a significant increase in tail hedges to position for shocks. Some investors are positioning themselves in the solar industry based on the perceived differences between the two candidates. [Extracted from the article]

Investors are increasing their bets on a recovery in Chinese shares following the announcement of a stimulus package by the People's Bank of China. This has led to a surge in Asian and US markets, with exchange-traded funds and stocks experiencing significant gains. In the options market, call volumes on the iShares China Large-Cap ETF have reached their highest level since February, and one investor made a large trade betting on a further rally. This buying trend has also spread to broader emerging-market funds. [Extracted from the article]

Investors are purchasing bullish options on Chinese equities exchange-traded funds (ETFs) in response to speculation that the Chinese government will increase stimulus measures to support economic growth. The iShares China Large-Cap ETF saw a surge in call buying, with the one-month put skew nearing parity for the first time since July. The Xtrackers Harvest CSI 300 China A-Shares ETF also experienced increased bullish sentiment, with 30,000 contracts of $24 calls being traded. The central bank's decision to lower a short-term policy rate and concerns over disappointing economic data have fueled the demand for additional support. [Extracted from the article]

This article discusses five key charts to watch in global commodity markets. It highlights the surge in gold prices, which has benefited gold miners and boosted investor enthusiasm. The article also mentions the falling premium of gasoline and diesel futures over crude oil, which could impact the outlook for oil refiners. Additionally, it discusses the impact of hot and dry weather on wheat crops and the potential comeback of nuclear energy. Lastly, it mentions the record-setting global temperatures and the impact of climate change on commodities markets. [Extracted from the article]

The cost of options on shares of Donald Trump's media company has increased significantly as traders anticipate election-related volatility and the end of a lockup period on insider sales. The implied volatility for Trump Media & Technology Group Corp. options expiring in three months is now double the level in mid-June. Insiders will be able to sell their stakes starting on September 19, which could flood the market with shares and further depress prices. The options market is preparing for even larger price swings, despite the stock already being more volatile than Bitcoin. [Extracted from the article]

An investor who purchased call spreads on the Cboe Volatility Index (VIX) last Friday has made a significant gain of around $12 million as the S&P 500 Index experienced a sharp decline and the VIX surged. The investor spent nearly $9 million on 350,000 call spreads to protect against a potential increase in volatility in September. The call spreads, which were initially bought for 25 cents each, were later sold for around 60 cents as the VIX rose. It is unclear whether the buyer sold the position, but the potential profit stands at approximately $12.25 million. [Extracted from the article]

An options trader has spent $9 million on call spreads on the Cboe Volatility Index (VIX) in order to protect against a potential spike in S&P 500 volatility in September. This comes as September has historically been a weak month for the S&P 500, and with the US presidential election approaching, there is increased uncertainty. The trader is likely using this strategy as a low-cost hedge against a significant increase in near-term volatility, with upcoming events such as the nonfarm payrolls report and the Federal Reserve's interest-rate decision potentially serving as catalysts. [Extracted from the article]

Investors can now assess the sentiment towards equities during the US presidential election by looking at S&P 500 Index options and Cboe Volatility Index futures. October VIX futures have shown a persistent premium, indicating expectations of increased volatility in stocks after Election Day. S&P 500 options for that period also suggest a higher likelihood of a significant move following the vote. Out-of-the-money spread trades imply a greater probability of a sizable move in the S&P, particularly downwards. [Extracted from the article]

Oil's recent increase in volatility has been short-lived, with the $75-a-barrel price level once again proving to be a sticking point for the Brent market. The increase in volatility came as equities and other markets experienced a sudden spike. Concerns about the Federal Reserve's delay in easing interest rates and its potential impact on the economy and oil demand contributed to the broader risk asset sell-off. However, with the conflict between Israel and Hezbollah intensifying, equities rallying, and signs of near-term supply tightness in the physical oil market, Brent prices are climbing back into the $75 to $90 range. The potential reversal of supply cuts by OPEC+ countries and the resulting impact on stockpiles may also affect volatility. [Extracted from the article]

Oil's recent increase in volatility has been reversed, with the $75-a-barrel price level once again proving to be a sticking point for the Brent market. The initial increase in volatility was driven by concerns about the Federal Reserve's delay in easing interest rates and its potential impact on oil demand. However, with equities rebounding and the Fed signaling its readiness to cut rates, Brent prices are climbing back into the $75 to $90 range. The future volatility of oil prices may depend on whether OPEC+ countries follow through with their plan to increase supply in the coming months. [Extracted from the article]

Traders are considering options strategies as an alternative to fully investing in stocks after a volatile week in the market. Risk reversals and call spreads, which involve buying one contract while selling another, are becoming more attractive for bullish views. Options prices spiked last week, but have since given up some gains. Traders who anticipate stock losses but don't want to miss out on potential gains can use options to mitigate risk. Volatility is expected to remain elevated in the near term, with upcoming events such as a US inflation report and earnings announcements. [Extracted from the article]

The S&P 500 options volatility has surpassed that of the Nasdaq 100 for the first time since the Covid pandemic, indicating a crisis-type dynamic, according to Citigroup's Stuart Kaiser. The Cboe Volatility Index (VIX) reached 38.57 on Monday, 1.1 times higher than the VXN, a similar measure for the Nasdaq 100. This spike in volatility has led some traders to view the selloff as an opportunity, while others with large positions are being forced out. [Extracted from the article]

Cboe Global Markets Inc. plans to introduce revamped Cboe S&P 500 Variance Futures on September 23, pending regulatory approval. These futures contracts will allow traders to hedge against realized volatility in the S&P 500 index, as opposed to the existing VIX contracts that reflect expected future swings. The new contracts aim to provide increased price transparency and lower costs for companies. Cboe redesigned the contracts based on feedback from market participants. [Extracted from the article]

Hedging is becoming popular again among investors due to concerns about various factors such as the US presidential election, second-quarter earnings, economic growth, and interest rates. The Cboe Volatility Index, which measures options prices, experienced a significant increase as stocks declined and calls for Joseph Biden to withdraw from the presidential race grew. If Vice President Kamala Harris becomes the Democratic nominee, risk pricing is expected to resemble the period before Biden's debate against Donald Trump. Traders are also monitoring technology company earnings and the Federal Reserve's potential interest rate cuts. The stock market has experienced a decrease in frothiness, with investors realizing that stocks can also decline and seeking protection. The VIX reached its highest level since April, and the cost of options on the gauge hit a three-month high. The Treasury futures market saw a flattening of the curve as investors began losing patience with the "Trump steepener trade." Traders are also protecting against potential rate moves by the September meeting. While it is uncertain if this shift in positioning will persist, the quieter summer days may amplify market movements. [Extracted from the article]

Traders are purchasing options in anticipation of further gains for Donald Trump's media company, Trump Media & Technology Group Corp. The company's shares rose by as much as 50% on Monday, following speculation that the failed assassination attempt on Trump would increase his chances of winning the White House. Implied volatility for options expiring on Friday increased to over 200% on an annualized basis, with calls outnumbering puts, indicating a demand for bullish contracts. Most of the trading activity involved short-term contracts, with $50 and $80 calls expiring on Friday being the most popular. The former president owns a majority stake in Trump Media, which operates the social media platform Truth Social. [Extracted from the article]

Options markets have shown little reaction to the failed assassination attempt on former President Donald Trump, with 10-year Treasury volatility increasing slightly and VIX futures decreasing. The S&P 500 Index and traditional safe havens like gold, the dollar, and Treasuries have experienced relatively low volatility. The lack of significant market impact is attributed to the steady rise of tech stocks and the expiration of puts that have become worthless. While there has been some speculation about potential election and post-election uncertainty, overall market volatility remains low. [Extracted from the article]

Tesla Inc. options investors are currently very optimistic, with the three-month call skew at its widest since February 2021. This shift in sentiment comes as Tesla shares have risen by 34% in the past three weeks. The surge in shares was fueled by Tesla reporting a smaller annual decline in quarterly vehicle deliveries than expected by analysts. Options trading volume has also increased, with over 240,000 $230 calls expiring on Friday changing hands. [Extracted from the article]

Non-professional investors in the US options market are playing a larger role than ever before, with retail traders accounting for 18.3% of total options activity in June, according to JPMorgan Chase & Co. These investors are primarily focused on short-term bets and have a particular interest in technology stocks. Retail traders are using options as stock substitutes for better leverage access and as overlays on their long broad market ETF positions for income and hedging. The demand for bullish call options on technology stocks has contributed to the S&P 500 Index reaching repeated records in 2024. [Extracted from the article]

The recent revival of meme stocks, such as GameStop and AMC Entertainment, was short-lived and quickly fizzled out. While these stocks saw a surge in value at the beginning of the week, most of those gains were erased within days. Unlike the frenzy seen in 2021, this revival was short-lived and did not result in the same level of gains. Both GameStop and AMC took advantage of the rallies to raise funds, but they still face significant challenges. The meme stock moment in 2024 was fleeting and lacked follow-through from retail traders. The activity and volume of retail traders were significantly lower compared to previous years. Options markets also experienced volatility, with short-term prices implying high levels of volatility before dropping. The rally in meme stocks affected short sellers, resulting in paper losses for them. Other companies popular with retail traders also saw their shares lifted, but many of them remain beaten down over the past year. [Extracted from the article]

Foreign investors are showing pessimism towards Indian stocks due to speculation that Prime Minister Narendra Modi's party may win fewer seats in the ongoing national elections than previously estimated. Net short positions in the derivatives market have surged to the widest gap since 2012, and overseas investors have pulled out about $4 billion from local stocks since early April. The dip in voter turnout during the recent phases of polling has raised concerns about the BJP's support, although Modi is still expected to secure a third successive term. Indian equities have underperformed their Asian peers this quarter. [Extracted from the article]

Bill Gross, the former "Bond King," has been selling options on meme stocks such as GameStop and AMC Entertainment. He sold calls and puts on these stocks, taking advantage of the speculative nature of these companies. Gross's strategy involves selling options with high volatility, aiming to profit if the stock stays within a certain range. This trading frenzy is reminiscent of the meme stock craze in 2021, with individual investors rallying against short-sellers. Despite recent gains, GameStop and AMC stocks are still significantly below their peak values, causing losses for some investors. [Extracted from the article]

According to analysts at Bank of America, investors who engage in short-term stock trading may be limiting their returns. The trading horizon has become shorter, with zero-day-to-expiry options accounting for almost half of all S&P 500 index option volumes. However, the analysts note that the odds of losing money in the S&P 500 decrease significantly when investments are held for a longer period of time. They also caution against trying to time the market, as missing the 10 best S&P 500 days per decade could result in significantly lower gains compared to remaining invested. [Extracted from the article]