Key Takeaways with Craig

US Equity Indexes were little changed on the day, while Treasury yields rose again as the market looks toward Wednesday’s release of the latest CPI reading.  In the options markets, CVOL rose in the Treasury options, though it remains below the 3-month average, while implied volatility in CME’s Equity Index options declined today and is trading near the 1-year average. 

CME’s metals markets, which we’ve covered extensively lately, continued to move higher today with Silver prices up by another 1.5% and Gold higher by about .5%.  CVOL in the options markets in both metals traded higher, with Silver CVOL at 1-Year highs and dramatically above the average closing level over the last 12 months.  In the top graph below, we approximated the 12-month average closing level with the yellow line. 

As we mentioned above, this week brings us the CPI release on Wednesday, as well as the FOMC minutes and the PPI on Thursday.  These economic releases have not been lost on the options markets, as you can see from the lower QuikStrike graph below that depicts the volatility curve of the E-mini S&P 500 options.  As you can see, the options that expire tomorrow, before the release of the CPI are trading at around 11.2%, while the options that expire on Wednesday, after the release, are trading over 16.3%. 

Finally, cryptocurrencies remain volatile with Bitcoin futures prices rising by about 6.3% over Friday’s close and Ether up by about 11.5%.  In both cryptocurrency option markets, the 25 Delta Calls are trading at a higher implied volatility level than the Puts. 

Today's Future Price Action

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