At-a-Glance

Key Takeaways with Craig

After an extraordinarily volatile first month of 2022, US Equity Indexes closed out January with broad gains today, led by the Nasdaq, which was up by nearly 3.5%.  Implied volatility (“vol”), while still elevated relative to the last three months, has come down significantly over the last couple of trading sessions.  30-day at the money implied volatility in the Nasdaq-100 options has fallen from about 33% to 27% since Thursday’s close. 

CME Group Energy markets remains active as WTI Crude Oil price continued to climb, up to over $88 per barrel in late afternoon trading.  As we mentioned on Friday, Natural Gas futures prices have risen substantially over the last week and were up another 4.6% today.  Implied volatility has also risen in the Nat Gas options where the 30-day vol is trading at about 84% (about 20% higher than Bitcoin vol!)  Also, according to the Risk Reversal, the Calls are being bid over the Puts where the 25 delta strike Calls are trading 20% higher than the Puts; up from just 4% last week.  This is represented graphically in the QuikStrike image below. 

Looking ahead for the week, among others headlines, we’ll be watching earnings season continue as well as the January Employment report that is scheduled to be released on Friday morning. 

Today's Future Price Action

Traders Resources

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