At-a-Glance

Key Takeaways with Craig

US Equity Indexes varied wildly today with the Nasdaq up sharply on the back of strong technology company earnings, the S&P 500 up moderately and the Dow Jones Industrials falling about .5%.  What didn’t vary was that implied volatility ticked higher in all indexes, regardless of whether the price rallied or broke.  This was particularly true of the options that expire tomorrow as the E-mini S&P 500 rose to over 32% and the Nasdaq-100 to near 50% in the options that expire after tomorrow’s January Employment report. 

US Treasury yields were little changed after falling yesterday, though the Micro 2-Year Yield futures fell below 4% earlier in the day before trading just above 4 in late afternoon action.  The 2s versus 10s inversion in the Micro Treasury future remains at just over 60 basis points.

In other CME Group markets, WTI Crude Oil futures prices declined again, Gold was down nearly 1% and the US Dollar gained relative to most major currencies.

Once again, we’ll leave our readers with a QuikStrike picture of the E-mini Nasdaq-100 volatility curve as it does a nice job illustrating the heightened vol in the options that expire tomorrow and after the potentially market-moving release of the January Employment report as well as the spike higher we saw today over yesterday (the blue over the orange lines). 

Have a nice evening and we’ll be back tomorrow to recap the first month of 2023.  

Today's Future Price Action

Traders Resources

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