Key Takeaways With Craig

By Craig Bewick
SEP 24 2020

US Stocks began the day generally lower, then rallied but then fell again in late afternoon trading… but then they rallied again to end mostly higher.  Implied volatility in the Equity Index options markets at CME Group was near steady. 

Elsewhere at CME Group, WTI Crude Oil futures prices rallied slightly, US Treasury prices were higher, particularly at the longer end of the curve, indicating lower yields and Gold and Silver futures prices rose by less than 1%.

Soybean futures prices, after a fairly substantial rally, fell today by about 1.25%.  Taking a closer look at where November implied volatility and skew are currently trading relative to the last 10 years, we find that implied volatility has come down to amongst the lowest at this time in September than it’s been since 2010 as you can see in the upper graph below.  However, in the lower graph, you can see that Calls are trading at a higher implied volatility relative to Puts than they have in any year except 2010. 

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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