Key Takeaways with Craig
US Equity Index prices rallied in late afternoon action to close down just slightly while implied volatility in the CME’s Equity Index options continued to decline. US Treasury yields rose and with today’s rally, the Micro 10-Year is up just a couple basis points on the week while the 2-Year is up by about 9 basis points. Here’s the weekly price and volatility recap using QuikStrike and CVOL data:
- Even with all the headlines regarding debt ceiling, recession potential, etc, implied volatility in almost all of the products we looked at declined on the week and were down a relative 10% and 11% in E-mini Nasdaq-100 and Gold options.
- With the late afternoon rally, E-mini Nasdaq-100 prices squeaked out a slight gain on the week.
- Gold prices were also slightly higher and remain near all-time high levels.
- The US Dollar gained versus the Euro FX in CME’s FX futures markets while volatility fell again. The CVOL level in Euro FX options is near 14 month lows.
- Even though the price of Bitcoin futures fell by over 11%, implied volatility in the at the money options fell by a relative 6%.
So as we move into the third week of May, the market will, of course, be looking for progress in the debt ceiling negotiations and a couple of Federal Reserve speeches on Friday, among other things. In the meantime, have a safe and happy Mother’s Day weekend and we’ll be back on Monday.
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.