Crypto Continues To Rally

By Craig Bewick
OCT 27 2020

US Stocks were mixed today as all of the uncertainty that we’ve talked about remains in the market.  The tech-heavy Nasdaq index was higher by about 1% while the Dow Jones Industrials declined by about the same.  Implied volatility, was near steady though remains elevated  US Treasury futures prices continued a reversal of the recent trend as prices on the long end of the yield curve were higher indicating lower yields. As with equities, volatility in the CME Group longer-dated Treasury options markets was little changed but remains higher versus recent history.

Bitcoin futures prices at CME Group continued higher today, up another 4.3% to 13,610.  As you can see in the QuikStrike graph below which depicts the price (2 years worth) and implied volatility (since data became available from Bitcoin options), the price of Bitcoin futures has not been this high since June, 2019.  Volatility has ticked higher recently as well though does not look that significant in the graph due to the spike we saw during March of this year.  Calls have also been bid relative to Puts during the recent price rally as well. 

 

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. 

After 8.5 years with WH Trading LLC, Craig returned to CME Group as the Director, Client Development and Sales, working to educate and promote futures trading. Craig currently writes for InFocus Options Corner.

Connect with Craig at activetrader@cmegroup.com

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