US Equity stocks fell again today, though the losses were fairly muted with none of the four major indexes dropping by more than 1%. Implied volatility in the E-mini S&P 500 options rose again today though in the Nasdaq-100, it declined slightly. In other markets, WTI Crude Oil futures prices rose by over 2% after declining for the last several days, Soybean futures prices resumed the price rally we’ve seen over the last couple months and Gold and Silver futures prices rose by less than 1%. November Soybean options volatility remains elevated and the Calls are trading higher versus the puts at this time in October than in any year since 2015, as you can see in the gray line in the QuikStrike graph below.
As we look toward technology company earnings over the coming weeks, we’d like to call our readers attention to a paper we recently published on using Micro E-mini Nasdaq-100 futures as a proxy for a basket of “FAANG” stocks. The paper can be found here.