Key Takeaways with Craig
US Equity prices struggled to find a clear direction today but rallied sharply near the end of the trading session to finish broadly higher. Implied volatility in CME Equity Index options markets ticked down, but not substantially. The Department of Labor May Employment report is scheduled to be released tomorrow, which should provide the latest indication of strength of the US Job market. As you can see in the QuikStrike term structure of volatility graph below of the E-mini Nasdaq-100 options, the market is placing a clear premium on the options that expire tomorrow relative to the more deferred expirations.
Despite OPEC agreeing to increase oil output by a larger than expected amount, WTI Crude Oil futures prices rose again today, up by another 2% to about $117.50 per barrel in the July expiration. Implied volatility in the WTI Crude Oil options markets declined today in the wake of the OPEC announcement.
In other CME Group products, US Treasury yields were near steady on the day, Gold prices rose and the most major foreign currencies rose against the dollar.
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