Key Takeaways with Craig
US Equity Index prices managed to hold gains today and even closed near the upper end of the range and the Nasdaq, which was down for the last 7 days, was up by just over 2%. US Treasury yields were down by about 6 basis points generally throughout the yield curve in a slight parallel shift downward. Therefore, the 2s versus 10s inversion remains at about 18 basis points. Implied volatility in CME’s Equity Index options markets came off today and in both the E-mini S&P 500 and Nasdaq-100 is trading right at the 3-month closing average for options with 30-days until expiration.
WTI Crude Oil futures prices were down another nearly 6% today and, at about $82 per barrel, are trading at levels we haven’t seen since January. The orange line in the QuikStrike graph below depicts the WTI Crude Oil futures price over the last nine months. We drew the yellow line on the graph to illustrate the last time we saw prices this low. You can also see from the blue line in the QuikStrike graph that implied volatility in the WTI Crude Oil options markets has jumped up with the price break.
Finally, while still trading at elevated levels, Natural Gas futures prices came down by another 4% today. With today’s move, they are down by about 18.5% since the third week of August. Implied volatility also remains elevated at about 80% for options that expire in 30 days.
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