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.
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.