US Equity prices fell again today as concerns over inflation seem to weight on the market. The Nasdaq, which was higher for most of the day, declined in late afternoon trading, though implied volatility remained near steady from where it was trading yesterday. Overall, it was a relatively quiet day in the financial and commodity markets at CME Group as grains futures prices were mixed, energy prices were mostly lower, metals prices were little changed as were US Treasury prices. The US Dollar was lower versus most major currencies. Bitcoin futures prices fell again today as did implied volatility in the options markets, though 30-day volatility remains over 100%.
With today’s price move, the Euro FX is trading as high versus the US Dollar as it has since early January and, while implied volatility continues to trade at relatively low levels, you can see in the blue line in the QuikStrike graph below (depicting 6 months of price and implied volatility data in the Euro FX) that it was bid up with today’s move. The Calls are trading nearly as high relative to the Puts as we’ve seen since early January as well. The Canadian Dollar, Swiss Franc and British Pound graphs, though not pictured here, look similar versus the US Dollar. Remember, CME Group lists standard size Foreign Currency futures, Options on those Futures and Micro FX futures that are, generally, 1/10 the size of the standard contract.