At-a-Glance
Key Takeaways with Craig
On the Friday of an already volatile week, US Equity index prices fell, Treasury yields rose, Gold prices were down by over 2% and WTI Crude Oil fell by over 3%. As we usually do on Fridays, below is a recap of weekly net price and volatility changes in some of CME’s major products, using QuikStrike and CVOL data to compile.
- Consistent with our theme this week, we added a column for the E-mini Russell 2000 to this week’s recap. On a weekly basis you can see the divergence in the three indexes we showcased, with the S&P 500 and Nasdaq-100 declining on the week while the Russell 2000 managed a 2% gain. Implied volatility rose in the options markets of all three.
- Mostly due to today’s price break, WTI Crude Oil futures prices were down by about 3% on the week. CVOL in the options jumped, albeit from historically low levels.
- Gold futures prices were down by about 1%, though, again, that came after a 2% decline today. CVOL rose in Gold options as well.
- Bitcoin futures prices rallied this week and implied volatility in the options rose to highs last seen in Mid-May.
- Soybean prices fell, while volatility in the options rose this week.
And speaking of CME’s Agricultural products, we wanted to call our reader’s attention to the video that can be found here (or in the video reel below), that provides an interesting perspective on CME’s futures and options from the lens of an Illinois farmer and the value he gets from CME’s short-dated, weekly and “new crop” options.
So, even as we march through the “dog days” of summer, volatility in almost all the products we looked at traded higher this week. Among other reports, next week will bring us US GDP on Thursday morning and, of course, the market will continue watching for developments in what is shaping up to be an unprecedented Presidential election here in the US.
Have a great weekend, as we said yesterday, we hope those in the Chicago area can enjoy this beautiful weather and we’ll see you all on Monday.
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