Key Takeaways With Craig

By Craig Bewick
JUL 24 2020

US Equities sold off again while volatility continued to climb and Gold reached new recent highs. Some notable moves on the week included:

E-mini Nasdaq-100 futures prices fell by about 1.5% and volatility rose

Gold future prices were up by about 5% and volatility rose sharply

Silver futures were up by over 16% and volatility in the Sep expiration rose from about 29% to 45%!

Given the big price moves in the Nasdaq market that we’ve seen over the last couple of trading sessions, we took a closer look at those options. We saw something interesting in the term structure volatility curve which depicts the implied volatility in the options at different expirations. As you can see in the QuikStrike graphs below of both the E-mini S&P 500 and E-mini Nasdaq-100 options, the Nasdaq-100 options (lower graph) expiring a week from today have been bid up relative to more differed expirations. This makes some sense given the recent big price moves in the Nasdaq and the fact that some very big technology firms such as Apple, Google, Facebook and Amazon all report earnings next week.

As always, we wish our InFOCUS readers a safe, healthy and happy weekend and we'll be back Monday to see what next week brings!

ABOUT THE AUTHOR
Craig Bewick has spent 20 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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