August In Review

By Craig Bewick
AUG 31 2021

And just like that, August is in our rearview mirrors.  Despite there being no shortage of potentially market moving headlines throughout the month, the monthly net changes in price and volatility were actually fairly muted.  Because of webinar schedules, we put the following figures together during late morning trading so any dramatic moves this afternoon aren’t reflected here. 

  • US Equity Index prices were slightly higher on the month while implied volatility in the options declined
  • WTI Crude Oil futures prices were down but off of lows from earlier in the month
  • Corn and Soybean price and volatility declined but the October expiration is still trading at relatively high levels versus this time of year over the last 6 years
  • Natural Gas futures price hit a new multi-year high today and implied volatility is trading at elevated levels as well.  Also, according to the 25 Delta Risk Reversal, out of the money Calls are trading 8% over the Puts.
  • Bitcoin futures price was up by nearly 20%

As we said yesterday, we’re looking toward Friday’s Department of Labor August Employment report for signs on the health of the US jobs market before the Holiday weekend in the US that will unofficially end our summer.  We’ll be here throughout the Fall to report on CME Group markets.

ABOUT THE AUTHOR

Craig Bewick has spent 25 years in futures and options markets, starting at CBOT and CME working in risk management, regulatory, technology, product management and client development. 

Connect with Craig at activetrader@cmegroup.com

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