At-a-Glance
Key Takeaways with Craig
Despite a higher-than-expected headline inflation number, US Treasury Yields fell today, with the Micro 2-Year Treasury Yield future falling by about 10 basis points and the 10 and the 10-Year falling by about 5. This brings the inversion between the two to about 20 basis points; down from nearly 50 bps at the end of December. The skew (in yield terms) in the 2-Year is trading decidedly more toward the Puts than it is in the 10-Year as well, according to CME CVOL data. US Equity prices were mostly lower, though the Nasdaq did manage a small gain. Implied volatility in CME’s Equity Index options fell slightly and continues to trade near 2+ year lows.
CME Energy markets remain active as Natural Gas prices, which we’ve discussed at length in this column this week, were up by about 2% and CVOL traded higher in the options market. WTI Crude Oil rose by about 1.75% in the midst of escalating tensions in the Middle East, though neither CVOL nor Skew in the WTI Crude Options market reacted dramatically.
Perhaps unsurprisingly, CME Cryptocurrency futures were active today after news broke yesterday that the SEC had approved spot bitcoin ETF trading in the US. Bitcoin futures for January expiration hit a high of 49,435 earlier in the day, before trading down to around 46,500 in late afternoon action. Ether futures, the price action of which has outperformed Bitcoin recently, rose to 2,714 and were trading around 2,630 in late afternoon activity. Somewhat interestingly, skew in CME’s Bitcoin options, using the 25 Delta Risk Reversal as a proxy, has shifted from a Call skew to a Put skew in the last couple of days, as you can see in the QuikStrike graph below. This graph depicts the implied volatility of the 25 Delta Calls minus that of the 25 Delta Puts with 30 days until expiration. The yellow line we drew on the graph is near the 0 level, so below that line represents the Puts trading slightly higher than the Calls. Remember, CME lists an an entire suite of Cryptocurrency futures and options including standard size Bitcoin and Ether futures, Micro Bitcoin and Ether futures, options on all of those futures and an Ether/Bitcoin future that allows traders to take a position on the price of Ether relative to that of Bitcoin.
Todays Featured Videos
Today's Future Price Action
Traders Resources
The information in the market commentaries have been obtained from sources believed to be reliable, but we do not guarantee its accuracy and expressly disclaim all liability. Neither the information nor any opinions expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts. The information on this site compiled by CME Group is for general purposes only. All information and data herein is provided as-is. Additionally, all examples on this site are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. CME Group assumes no responsibility for any errors or omissions. CME Group, its affiliates and any third party information and content providers expressly disclaim all liability with respect to the information and data contained herein including without limitation, any liability with respect to the accuracy or completeness of any data. You use the data herein solely at your own risk. All data and information provided herein is not intended for trading purposes or for trading advice. All matters pertaining to rules and specifications herein are made subject to and superseded by official CME, CBOT, NYMEX and COMEX rules. Current rules should be consulted in all cases concerning contract specifications.
Neither futures trading nor swaps trading are suitable for all investors, and each involves the risk of loss. Due to the leveraged nature of futures trading and swaps trading, it is possible to lose more than the amount deposited in a position. Therefore, traders should not deposit more funds than they can afford to lose without negatively affecting their lifestyles. A trader cannot expect to profit on each trade, and should only devote a small amount of their available funds to each trade. All references to options refer to options on futures.
Past performance is not necessarily indicative of future performance.
CME Group, the Globe Logo, Chicago Mercantile Exchange, Globex and CME are trademarks of Chicago Mercantile Exchange Inc. CBOT is the trademark of the Board of Trade of the City of Chicago, Inc. NYMEX is the trademark of the New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other marks are the property of their respective owners. Each of Chicago Mercantile Exchange Inc. (ARBN 103 432 391), The Board of Trade of the City of Chicago Inc (ARBN 110 594 459), the New York Mercantile Exchange Inc (ARBN 113 929 436) and Commodity Exchange, Inc. (ARBN 622 016 193) is a registered foreign company in Australia and holds an Australian market licence.
This site does not constitute a prospectus, product disclosure statement or legal advice, nor is it a recommendation to buy, sell or retain any specific investment or to utilise or refrain from utilising any particular service. Readers should consult their legal advisors for legal advice in connection with the matters covered on this site.
