At-a-Glance
Key Takeaways with Craig
US Equity Index prices were slightly lower today and Treasury yields were little changed during a relatively quiet day in CME’s Financial and Commodity markets. Implied volatility in CME’s Equity Index options markets traded lower and is trading near 5-year low levels.
Notably, the spot price of Bitcoin traded over 100k for the first time in overnight action, though was back below 99k in mid-afternoon action. In CME’s markets, implied volatility was trading just above the 1-year average in the Bitcoin options markets.
Finally, this morning, CME announced the launch of a new 1-Ounce Gold futures product, scheduled for January 13th, pending regulatory review. This new product, which will be financially settled, will complement CME’s existing GC futures, which provides exposure equal to 100 ounces of Gold, as well as the MGC (Micro Gold), which provides for exposure of 10 Ounces of Gold.
For sake of example, hypothetically, if a trader bought one contract each of the new 1-Ounce Gold, MGC and GC at the current offered price of 2,632, and the price moved $10 higher to 2,642, the P&L impact, excluding fees and commissions, would be as follows:
- 1-Ounce = $10.00
- MGC = $100.00
- GC = $1,000
As you can see in the top CVOL image below, the price of Gold futures has fluctuated in the month since the US Presidential election, but is currently about 3.5% lower than it was at that time. The lower graph below shows that CVOL fell immediately following the election, rallied slightly, but currently sits at about 15, down from 19 a month ago.
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