Goodbye April.. Hello May.. And Micro Bitcoins Launch This Weekend!

By Craig Bewick
APR 30 2021

And that will do it for the month of April… As has been the norm in recent history, it was a relatively quiet month at CME Group.  In fact with the exception of Corn and Natural Gas, all the products we looked at ended the month at lower implied volatility levels than they started (although Soybeans is a bit misleading since it ended the month at 23% but traded as low as 16% earlier in April).  Examining the chart below that we compiled using QuikStrike data, the following stands out:

  • Of all the products we looked at, only Bitcoin futures declined in price
  • As we mentioned above, implied volatility in the options markets declined overall
  • The increase in price in the US T-Bond future represents about a 5 basis point decline in implied yield

So, even though April was relatively quiet, we all know how fast volatility conditions can potentially change so we’ll be back on Monday to see what May brings!  Don’t forget about the launch of the Micro Bitcoin futures contract on Sunday evening!  Have a great weekend!

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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