Key Takeaways With Craig

By Craig Bewick
JUL 29 2020

US Equity prices were higher most of the day and then rallied further after Fed Chairman Powell spoke after keeping the Fed Funds target rate at 0-25 basis points.  In other financial news, the CEOs of Facebook, Google, Apple and Amazon began their congressional antitrust testimony.  Implied volatility in the Equity Index options was down slightly, but looking at the term structure (volatility curve) in the E-mini S&P 500 and Nasdaq-100, we still see a spike in the Nasdaq-100 options expiring Friday, possibly as a result of the major technology company earnings announcements that are scheduled for the next couple of days. 

August Gold futures prices were up nearly another 1% to about 1975 per ounce while silver was near steady.  In both products, implied volatility was down slightly but remains elevated and Calls volatility remains elevated versus Puts relative to recent months. 

US Treasury futures prices were higher (lower yields) from 2-Years through the T-Bond but the Ultra T-Bond was lower, indicating slightly higher yields at the end of the yield curve. 

We’ve included QuikStrike graphs of the aforementioned volatility curves in the E-mini Nasdaq-100 and S&P 500 options below; they provide a good illustration of that heightened volatility in the Nasdaq options expiring Friday. 

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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