At-a-Glance
Key Takeaways with Craig
US Equity prices charged out of the gate to begin the last full week of July trading, as CME’s E-mini Nasdaq-100 was up by about 1.5%, the Russell 2000, which we wrote extensively about last week, was up by about 1.6% and the S&P 500 was up by about 1%. Implied volatility in the Equity index options markets, which had risen last week, declined a bit with today’s price rally. US Treasury yields rose just slightly on the day.
It was a relatively quiet day in other CME markets, though the Agricultural markets saw some price movement. Corn futures were up by about 2.5%, Soybean up by about 3.2% and Wheat was up by just about 1%. CVOL levels in the Ag options markets rose with today’s price move. However, taking a different look at implied volatility in the Corn options, yields a different perspective. As you can see in the image below that was generated using QuikStrike data, current implied volatility in the December Corn expiry, as indicated by the dotted red line, is as low as it’s been at this time of year in any year since 2019 with the exception of 2020. The graph shows implied volatility in Dec Corn each year since 2019, with the number of days to expiration on the X-axis.
And staying on the Ags theme, we are including 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.
Todays Featured Videos
Traders Resources
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