The Impact of Options Activity on US Stock Trading
Guests: David Kovtun, Options Sales & Trading, Jane Street, and Paul Jiganti, Managing Director of Business Development, IMC
Host: Peter Haynes, Managing Director and Head of Index and Market Structure Research, TD Securities
Episode Double Nickels (55) of Bid Out dives into the deep end of US options market structure with two experts, Dave Kovtun from Jane Street and Paul Jiganti of IMC Markets. The goal of this podcast was to educate equity traders and portfolio managers about the information content of options activity and related impact on the underlying securities. Listeners will learn about recent market moving options activity in the S&P and some less liquid US stocks, and what it means to have single stocks expire during the week, in addition to once a month on the third Friday. Paul and Dave tamp down any chatter that 0DTE trading might lead to a so-called Volmageddon 2 event, as potential land mines from option market maker rebalancing are well known to the Street. Dave does an excellent job explaining how market makers hedge options risk and how the lack of homogeneity in hedging strategies leads to more liquidity in the market. Paul and Dave finish with some suggestions for improvements to options market structure, a space that has not garnered a huge amount of regulatory attention in recent years.
This podcast was originally recorded on August 8, 2023.
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David Koytun
Options Sales & Trading, Jane Street
David Koytun
Options Sales & Trading, Jane Street
David Koytun
Options Sales & Trading, Jane Street
Dave Kovtun is a member of Jane Street’s Institutional Sales & Trading team. In this role, Dave works with clients to implement listed options execution strategies and helps build Jane Street’s institutional options business.
Dave joined Jane Street in 2018 with twenty years of experience in the options industry. He began his career at Susquehanna as an equity options trader on the floor of the Chicago Board Options Exchange in 1998, later transitioning to their sales & trading team due to his affinity for sharing trading strategies and helping clients solve problems. Dave was then recruited by Citadel, where he was a founding member of their broker-dealer and helped build their equity derivatives business. Immediately prior to Jane Street, he served in an institutional sales role with Macro Risk Advisors.
Dave holds a BA in Economics from Northwestern University in Chicago. Originally from San Francisco, Dave has followed his career in options trading from Chicago to Philadelphia, Boston, and ultimately New York, where he now lives with his wife.
Paul Jiganti
Managing Director of Business Development, IMC
Paul Jiganti
Managing Director of Business Development, IMC
Paul Jiganti
Managing Director of Business Development, IMC
Paul Jiganti is the Managing Director of Business Development & Market Structure Strategy of IMC, and is responsible for facilitating IMC’s options business expansion by building new partnerships and emerging into new areas. Prior to joining IMC in 2015, Paul worked as an independent market maker on the CBOE floor for 6 years and, over the next 16 years, worked in various roles at Susquehanna Investment Group including Associate Director in charge of the Chicago office. He spent a year as a consultant to NASDAQ before joining TD Ameritrade where he was Managing Director in charge of market structure and retail client advocacy from 2012-2015.
Today, Paul shares his business knowledge in various communities including, Member Representative Director MIAX and MIAX Emerald, chairing the Listed Options Market Structure Working Group and past chairman and current member of SIFMA Listed Options Committee, SIFMA Equities Markets and Trading Committee and serves on the CBOE Advisory Committee. Previously, Paul served on the Board of Directors of both the CBOE and Direct Edge, NASDAQ Quality of Markets Committee, FINRA’s Limit up Limit down Advisory Committee, as well as Co-Chaired CBOE’s PAC. Paul has an Economics degree from University of San Diego and is Series 7 and 24 licensed.
Peter Haynes
Managing Director and Head of Index and Market Structure Research, TD Securities
Peter Haynes
Managing Director and Head of Index and Market Structure Research, TD Securities
Peter Haynes
Managing Director and Head of Index and Market Structure Research, TD Securities
Peter joined TD Securities in June 1995 and currently leads our Index and Market Structure research team. He also manages some key institutional relationships across the trading floor and hosts two podcast series: one on market structure and one on geopolitics. He started his career at the Toronto Stock Exchange in its index and derivatives marketing department before moving to Credit Lyonnais in Montreal. Peter is a member of S&P’s U.S., Canadian and Global Index Advisory Panels, and spent four years on the Ontario Securities Commission’s Market Structure Advisory Committee.
