Key Takeaways with Craig
US Equity prices struggled to find a clear direction after another wild week that saw the FOMC raise its Fed Funds target rate by 75 basis points, US equity prices fall and US Treasury Yields rise. As the dust settles on the week, we take a look back at net price and volatility changes using QuikStrike data. As the chart below illustrates:
- US Equity Prices fell and implied volatility CME’s Equity Index options markets rose from already heightened levels.
- WTI Crude Oil futures prices fell, highlighted by today’s 6% decline. Implied volatility in the options market rose and the Puts were bid relative to the Calls.
- Gold futures prices saw a lot of intra-week price movement and implied volatility rose sharply.
- Natural Gas futures prices fell sharply from historically high levels and was the only market we featured in which implied volatility fell.
- As has been widely reported in the financial and mainstream press, Bitcoin futures prices continued to fall. Implied volatility spiked higher and is, once again, trading at a higher level than Natural Gas options implied.
In observance of the Juneteenth holiday on Monday, we will not be publishing In FOCUS. We wish all of our In FOCUS readers a happy and safe summer weekend (for those of us in the Northern Hemisphere) and we’ll be back reporting on CME markets on Tuesday.
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