Once Again, U.S. Equities Fluctuated...

By Craig Bewick
JUL 15 2020

Once again, US Equities fluctuated throughout the trading day but wound up mixed as the small-cap Russell 2000 wound up with outsized gains, up over 3.5% while the Nasdaq was near unchanged.  Volatility in the Equity Index options markets was little changed on the day.  Neither Gold nor US Treasury futures prices saw substantial movement today though WTI Crude Oil futures prices rose by nearly 2%. 

Don’t forget that tomorrow CME Group will host a discussion on opportunities for the active trader in the Gold futures market.  Please reserve your spot by registering here.  The recent price appreciation in Gold has been well-publicized but let’s take a look at what’s been happening in the options market.  As you can see in the QuikStrike graphs below, implied volatility in the Gold options markets, has come down remarkably and is approaching levels it was trading at in the beginning of February before the global economic shutdowns.  In fact, the last time we saw 30-day volatility this low (14.4%) was on February 21st.  The lower graph below, which depicts the 25 Delta Risk Reversal, shows that Calls are currently trading at just a very slightly premium relative to the Puts. 



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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