At-a-Glance
Key Takeaways with Craig
After last week’s sell-off, US Equity prices were mixed to begin the last full week of October trading. Implied volatility in CME’s Equity Index options fell slightly but remains elevated compared to the levels at which it traded over the last 6 months. CME Treasury futures indicated rising yields during overnight and early morning trading, but by the end of the day, both the Micro 10 and 30-Year Yield futures were down by about 7.5 basis points. The Micro 2-Year was only down by about 1.5 bps, so the inversion widened by about 6 bps today. CVOL levels were near steady in CME’s Treasury Options markets.
WTI Crude Oil futures prices fell by a little over 2.5% today, with the December contract now trading at under $86 per barrel. Even though CVOL in WTI Crude Oil options fell by over 5% today, it is still trading nearly 40% higher than the 3-month average, underscoring the significant rally we’ve seen recently.
Finally, CME Group Cryptocurrency futures remained active with Bitcoin futures prices up by about 5.4% from Friday’s close and Ether futures up by about 5.6%. With this move, Bitcoin futures prices are up by about 16% in just over a week (since Oct 13th) and Ether futures prices are up 10%. Even though Ether outperformed Bitcoin slightly in today’s action, Bitcoin’s price performance has been relatively stronger over the last several months. The top graph below, generated using CME Data, depicts the settlement price of Ether divided by that of Bitcoin and clearly shows this outperformance, especially over the last couple weeks. This price action hasn’t been lost on the options markets either, as you can see in the lower graph and the graph on the right side, both of which were generated using QuikStrike data. The lower graph depicts 3 months of Bitcoin Option at-the-money implied volatility and the graph on the right is the 25-delta Risk Reversal, which shows that, as implied volatility has increased, the Calls have increased more relative to the Puts.
Todays Featured Videos
Today's Future Price Action
Traders Resources
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.