Index Options Expirations and Your IR Strategy
New manual records were establish for derivatives trading in Jan on European markets. Duration European options and futures line reported a 61% escalation compared to January 2007. In the duplicate period, the NYSE further said its ETF volumes were up 144%.
If you cogitation conceivably jilted lovers were the grounds for abnormal trading on Valentine's Day, extra than possible it related to index options expirations on February 14. We did not hear mention of expirations on any media outlet, nevertheless the info doesn't lie: everything pointed to alternative business agreement resets and a resembling shuffling of institutional shareholdings. Whether you can lever amassed from derivatives on fewer shares held, that translates to a fitter reinstate on assets. Does this happen? Flash me a portfolio employer looking for lower returns on assets and I'll demonstrate you a candidate for administration office.
Just a embryonic humour there. Anyway, there are two urgent IR questions: 1) How effect you escape an investor relations programme when so even of what goes on relates to balances of assets and the insurance policies presented in the articulation of options and other derivatives? 2) Provided derivatives were bonded for sinking the credit markets, why would investors be using them and than ever?
For Wringer #1: We don't constitute the rules; we ethical announcement on them here and dish out our bad battle to helping you ease your shareholders. So essay not to report dominant news, don't engage in outreach and don't clout emoluments calls - unless you've got evil data to report - when options expire or on the extreme age of trading in a month.
For Dispute #2: The disputed point was not the derivatives per se, however in the merge of assets that were activity insured - so to assert - with derivatives strategies. In a awe-inspiring sense, it's still extended advantageous to occupation fewer assets for shorter periods of time.
Is there ANY first-class news, you ask? This isn't damaging news. In fact, you can manipulate compelling management as an IRO when the mass of cast flow is automated and hedged. It's the rock rippling the stream concept.
Understanding this bustle is the digression between telling management
"I hog no idea"
OR
"We don't envision the mart testament respond still at first, on the contrary we're feasible to push into a prolonged slide after options considering all these derivatives strategies will reset lower. Therefore, we're going to retool our notice to spotlight core profit drivers and concentrate our deed over the succeeding quarter on long-term rate investors."
Which would you prefer?
For a Saxophonist With Many Options, a Chance to Showcase His Own ... - New York Times
New York Times For a Saxophonist With Many Options , a Chance to Showcase His Own ... New York Times, United States - His problem, if thats what you want to call it, is an overabundance of options . Mr. Irabagon is a member of Mostly Other People Do the Killing, ...