At-a-Glance
Key Takeaways with Craig
Once again, due to conference schedules, we’re writing the Key Takeaways section a bit earlier today but, as of early afternoon trading, US Equity prices had staged a strong comeback after yesterday’s sell-off and US Treasury yields were little changed. Another notable move in CME Group markets was Gold futures prices, which were down by about 2.5% at the time of this writing.
Given the conference we alluded to is the Bitcoin Conference, down in Nashville, where the enthusiasm for the cryptocurrency space is palpable, we thought it appropriate to touch on the market action in CME’s cryptocurrencies. There is a big divergence in the price of Ether vs Bitcoin futures today, where Ether is down by over 6%, while Bitcoin is down by just about 1%. CME’s Bitcoin options market reflects heightened price volatility as well as you can see in the images below. The blue line in the top QuikStrike graph below shows that, even though it’s come off of recent highs, implied volatility in Bitcoin options is trading well above the 3-month average. Moreover, the bottom graphs, which depicts the 25-Delta Risk Reversal, shows that the Calls are trading much higher, relative to the Puts, than they have on average during the last 3-months.
If you happen to be down here in “Music City” stop by CME’s booth and say “hi”!
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