Key Takeaways with Craig
Even though Monday will mark the last day of trading in January, we thought it would be a good time to take a look at price and volatility over the first month of the year. Keep in mind, to meet publishing deadlines, we compiled the chart below during early afternoon trading action so some of the prices may have changed during the last couple hours of trading. The extraordinarily volatile markets to begin the year are reflected in the numbers in the chart below that was put together using QuikStrike data.
- Implied volatility (“vol”) jumped in almost all products. Not surprisingly, Equity Index vol was up by nearly 90% but natural gas vol, which we haven’t covered extensively in the midst of the interest rate and equity moves, is up by over 50% on the year. Much of that natural gas move has occurred in the last week, during which we saw prices rise by over 30%.
- The yield on the Micro 10-Year Futures rose by about 17%. As significantly, the yield on the Micro 2-Year Yield contract has risen by about 34 basis points. The standard 2 Year Treasury (which are quoted in price, not yield) out of the money Calls are now trading at a higher vol than the out of the money Puts
- WTI Crude Oil prices continue to climb; as does vol in the options
- Gold has been particularly active lately, as reflected in the heightened vol in the options market
- CME Grains markets have also risen in price over the first month of the year
So, as we look towards February, volatility certainly characterizes many of CME’s financial and commodity markets. We wish all of our In FOCUS readers a safe and happy winter weekend, recharge, and we’ll see you all on Monday!
Todays Featured Videos
Today's Future Price Action
The information in the market commentaries have been obtained from sources believed to be reliable, but we do not guarantee its accuracy and expressly disclaim all liability. Neither the information nor any opinions expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts. The information on this site compiled by CME Group is for general purposes only. All information and data herein is provided as-is. Additionally, all examples on this site are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. CME Group assumes no responsibility for any errors or omissions. CME Group, its affiliates and any third party information and content providers expressly disclaim all liability with respect to the information and data contained herein including without limitation, any liability with respect to the accuracy or completeness of any data. You use the data herein solely at your own risk. All data and information provided herein is not intended for trading purposes or for trading advice. All matters pertaining to rules and specifications herein are made subject to and superseded by official CME, CBOT, NYMEX and COMEX rules. Current rules should be consulted in all cases concerning contract specifications.
Neither futures trading nor swaps trading are suitable for all investors, and each involves the risk of loss. Due to the leveraged nature of futures trading and swaps trading, it is possible to lose more than the amount deposited in a position. Therefore, traders should not deposit more funds than they can afford to lose without negatively affecting their lifestyles. A trader cannot expect to profit on each trade, and should only devote a small amount of their available funds to each trade. All references to options refer to options on futures.
Past performance is not necessarily indicative of future performance.
CME Group, the Globe Logo, Chicago Mercantile Exchange, Globex and CME are trademarks of Chicago Mercantile Exchange Inc. CBOT is the trademark of the Board of Trade of the City of Chicago, Inc. NYMEX is the trademark of the New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other marks are the property of their respective owners. Each of Chicago Mercantile Exchange Inc. (ARBN 103 432 391), The Board of Trade of the City of Chicago Inc (ARBN 110 594 459), the New York Mercantile Exchange Inc (ARBN 113 929 436) and Commodity Exchange, Inc. (ARBN 622 016 193) is a registered foreign company in Australia and holds an Australian market licence.
This site does not constitute a prospectus, product disclosure statement or legal advice, nor is it a recommendation to buy, sell or retain any specific investment or to utilise or refrain from utilising any particular service. Readers should consult their legal advisors for legal advice in connection with the matters covered on this site.