​Weekly – Investors Sell SPX Skew; Autos RV; Market Mapping Platform Launched

In this week’s coverage, we report on investors increasingly entering into trades that sell S&P 500 skew following the Greece debt deal with creditors on Monday that saw volatility in the index reverse. Popular trades have included investors entering into SPX risk reversals and ratio risk reversals to sell skew. Also, we speak with Assenagon’s Daniel Danon and Tobias Knecht on why owning volatility in automobile single stocks in Europe versus the Eurostoxx 50 or DAX index is pricing attractively given the dependence of these names on the economy in China. Our remaining coverage for the week focuses on areas including appetite from investors to go long RDXUSD through long-dated options, the launch of TCW Group’s first alternative mutual fund, and the willingness to buy vol in three-month to five-month tenors through calendars in the HSCEI given the inverted term structure. In People & Firms, BlueCrest has hired a quant trader, BBVA has hired a salesman, while Goldman and Bank of America announced positive equities revenues in Q2.