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Securities Lending

SLB Update: Largest Short Value


These were the 15 securities with largest short value on 10/19/17.
 

 

The analysis in this article is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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Options

What's Trading: RUT


CBOETV - Russell Rhoads, Director of Education, CBOE Options Institute, details a bull put spread in RUT.

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies are available from your broker, or at www.theocc.com. The information in this program is provided solely for general education and information purposes. No statement within the program should be construed as a recommendation to buy or sell a security or to provide investment advice. The opinions expressed in this program are solely the opinions of the participants, and do not necessarily reflect the opinions of CBOE or any of its subsidiaries or affiliates. You agree that under no circumstances will CBOE or its affiliates, or their respective directors, officers, trading permit holders, employees, and agents, be liable for any loss or damage caused by your reliance on information obtained from the program.

Copyright © 2016 Chicago Board Options Exchange, Incorporated.   All rights reserved.

 

This video is from CBOE and is being posted with CBOE’s permission. The views expressed in this article are solely those of the author and/or CBOE and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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Options

Vol. 411: Traders Buying Upside Protection


CBOETV - Jamie Tyrrell, Group One Trading, discusses a size Dec. call stupid and active upside Nov. calls. 

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies are available from your broker, or at www.theocc.com. The information in this program is provided solely for general education and information purposes. No statement within the program should be construed as a recommendation to buy or sell a security or to provide investment advice. The opinions expressed in this program are solely the opinions of the participants, and do not necessarily reflect the opinions of CBOE or any of its subsidiaries or affiliates. You agree that under no circumstances will CBOE or its affiliates, or their respective directors, officers, trading permit holders, employees, and agents, be liable for any loss or damage caused by your reliance on information obtained from the program.

Copyright © 2016 Chicago Board Options Exchange, Incorporated.   All rights reserved.

This video is from CBOE and is being posted with CBOE’s permission. The views expressed in this article are solely those of the author and/or CBOE and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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Macro

Semester-End Policy Liquidity Can't Be Crammed For


Rick Rieder and Russ Brownback argue that while cramming for finals may have worked in college, it won’t with the winding down of the global central bank policy liquidity “semester.”
 

With autumn well underway, who doesn’t feel a nostalgic pining for the good old days of collegiate life? Crisp colorful afternoons, football games, fall festivals and, oh yeah, looming final exams and papers. For us there were one or two occasions where despite plenty of forewarning about the necessary rigor required for finals, we waited until the last minute to even begin the process. Sleepless, and caffeine-fueled, nights in the library, complete with ongoing panic attacks and sharply decreased odds of maximizing our GPA were the unsatisfactory result. On those few occasions, at best we endeavored to survive with a “gentleman’s C”. At worst? Well, let’s not even think about that.

With the benefit of hindsight it is glaringly obvious that delayed preparation was a dubious choice, with very little upside and the ultimate downside. Eventually, we learned to layer in the protection that proper preparation afforded. We find this a useful (if painful) recollection to put to use today: The “semester” of G3 (the Federal Reserve, European Central Bank and Bank of Japan) policy liquidity is winding down, and we are not waiting until the last minute to prepare.

The coming months will likely usher in the first-ever contemporaneous draining of G3 policy liquidity, but we feel increasingly comfortable with the notion that an acceleration of real economy, growth-driven liquidity can provide a very timely substitute (see graph below). While there is no doubt that this regime change comes with a wider range of uncertainty relative to recent quarters, we are confident that expected monetary tightening will be well advertised and deliberate. Moreover, we are convinced that early stage acceleration of real economy velocity will ultimately take over from policy liquidity to facilitate more traditional credit growth through channels such as commercial and industrial loans, consumer credit, and real estate lending.

G3 Central Bank Policy Liquidity Set to Slowly Decline, But Growth-Driven Sources May Fill That Gap

chart-policy-liquidity

We are highly impressed with the depth and breadth of the current global growth paradigm, and we’re certain that it’s this momentum that has given G3 policymakers the requisite confidence to begin to address the easy financial conditions that have been such a dominant theme during 2017. To be sure, global policy liquidity has played the lead role in pushing asset prices to new highs, with strong correlations across both risk-free and risky assets.

Considering these dynamics, we find duration (a measure of interest-rate risk) to be somewhat more concerning today than in recent memory and the prospects for risky assets will vary depending on how future duration moves are divided between breakevens and real rates. Our expectation is that gradually higher levels of inflation breakevens will result from firmer inflation data in the coming months, while a move higher in real rates will be virtuously tied to cyclical changes in real growth. So we like owning assets with the highest convexity to inflation, with an additional layer of expressions that will benefit from benign moves higher in real rates.

As always, we debate potential “tail risks” associated with our views. Accordingly, the change in central bank mentality provides reason to consider whether the supply/demand imbalance for yielding assets that we have talked about for years now faces an existential threat. While we think that risk is likely to be low, we will be on alert for the possibility that the powerful technical of central bank-driven demand flips to central bank-driven supply. If accompanied by a surprisingly large fiscal stimulus, this change could create a more challenging environment for bond investors. Other left-tail risks to our view include geopolitical disruptions, possible U.S. dollar strength or a complete breakdown in NAFTA negotiations that could dampen near-term sentiment for emerging markets (EM) assets. The right-tail risk is the possibility that the current bullish environment has more horsepower and stamina than we’re forecasting, which could push valuations to even greater extremes.

New disruptive forces will likely cap significant inflation acceleration

Finally, as always, we continue to hold a deep core belief in following cash flows to find opportunities in a world of continual disruption (much of it technologically or demographically inspired) and stronger global growth. Over the past several months, we have catalogued the incredible disruption taking place across a wide array of industries. We expect much more of this to come, and we are blown away by how fast these trends are ripping into the fabric of economy-wide and industry-specific frameworks. While we anticipate that some of these deflationary influences could level off, there are emerging new disruptive forces that will likely cap significant inflation acceleration. The question is which industries will be impacted and at what pace.

We’re preparing for modestly higher developed market rates

We’re preparing for modestly higher developed market (DM) rates and choose to express duration through Treasuries over German Bunds or Japanese Government Bonds. Stronger inflation data over comings months will be the main catalyst for rising DM rates, so breakevens are a convex expression of this theme. We’re positioned in U.S. credit, as it offers more spread-per-unit-of-leverage than sovereign DM alternatives, and with volatility so low, upside equity convexity remains very attractively priced in our view. We continue to like EM, as benign leverage, calming inflation and relatively attractive real yields in selected local rates markets are compelling opportunities.   Ultimately, we think the autumn 2017 semester of policy liquidity is getting long in the tooth. School spirit revelry and other amusing diversions are ever present, but we’ve learned from our youthful errors and we’re studying hard for final exams. Our straight A’s will have come in the form of building a portfolio around high-quality and predictable carry, coupled with assets defined by attractive price characteristics. We hope to provide a “stellar report card” for our clients.

Rick Rieder, Managing Director, is BlackRock’s Chief Investment Officer of Global Fixed Income and is a regular contributor to The Blog. Russell Brownback, Managing Director, is a member of the Corporate Credit Group within BlackRock Fundamental Fixed Income and contributed to this post.

Follow Rick on Twitter.

Listen to Rick Rieder discuss how technology is reshaping the economic landscape and the bond market in our latest episode of our podcast, The Bid.


Investing involves risks including possible loss of principal.

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of October 2017 and may change as subsequent conditions vary. The information and opinions contained in this post are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by BlackRock, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this post is at the sole discretion of the reader.

©2017 BlackRock, Inc. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.

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This article is from BlackRock and is being posted with BlackRock’s permission. The views expressed in this article are solely those of the author and/or BlackRock and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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Options

EWY Risk Reversal Trades 1,500 Times


Risk Reversal Trades 1,500 Times

EWYiShares MSCI Korea Capped Ind
 
EWY Option Risk Reversal on 17-Nov-17 72 Put and 73 Call traded 1,500 times for $0.06 at 10:19:50 AM . The total premium was $9,000. The stock price was 72.60 at the time of the trade.

Go To Key Trades


Long 1 Call: 73 Strike @ $1.13Short 1 Put: 72 Strike @ $1.07Debit: $0.06

 

MarketChameleon was developed to provide users a fully-integrated suite of powerful analytical tools and downloadable data. https://marketchameleon.com/Premium

 

This article is from MarketChameleon.com and is being posted with MarketChameleon.com's permission. The views expressed in this article are solely those of the author and/or MarketChameleon.com and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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Disclosures

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The material (including articles and commentary) provided on IB Traders' Insight is offered for informational purposes only. The posted material is NOT a recommendation by Interactive Brokers (IB) that you or your clients should contract for the services of or invest with any of the independent advisors or hedge funds or others who may post on IB Traders' Insight or invest with any advisors or hedge funds. The advisors, hedge funds and other analysts who may post on IB Traders' Insight are independent of IB and IB does not make any representations or warranties concerning the past or future performance of these advisors, hedge funds and others or the accuracy of the information they provide. Interactive Brokers does not conduct a "suitability review" to make sure the trading of any advisor or hedge fund or other party is suitable for you.

Securities or other financial instruments mentioned in the material posted are not suitable for all investors. The material posted does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before making any investment or trade, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice. Past performance is no guarantee of future results.

Any information provided by third parties has been obtained from sources believed to be reliable and accurate; however, IB does not warrant its accuracy and assumes no responsibility for any errors or omissions.

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