Key Takeaways With Craig

By Craig Bewick
OCT 12 2020

As opposed to last week when the US Stock market seemed to hang on to every word regarding the Coronavirus stimulus package negotiations, today “it” didn’t seem to care as US Equity Indexes screamed higher, led by the Nasdaq which was up by over 3%.  With today’s price move, the E-mini (and Micro E-mini) Nasdaq-100 futures price is up by about 8% in just about a week.  We do find it a bit interesting that the implied volatility in the E-mini (and Micro E-mini) Nasdaq-100 options is actually slightly higher today than Friday’s close.  We’re not reading too much into this as volatility has come down substantially in the last week (as you can see in the QuikStrike graph below), but oftentimes, a decline in volatility accompanies such a sharp stock market price rally like we saw today.

A couple of CME Group commodity markets were active today, notably WTI Crude Oil futures which were lower by about 2.5% and Soybean futures prices which were down by nearly 3%.  Neither saw significant moves in volatility in the options market though, relative to the last 3 months, implied volatility remains elevated in the Soybeans options. 

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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