In the last few weeks volatility has returned to financial headlines with a vengeance leaving traders checking under their beds for asset bubbles and causing “panic” when VIX traded with a 17-handle for the first time since November 2016. So what’s really playing out in markets? * note that the volatilities shown are calculated using […]
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Entries by bantixauthor
The FTSE Russell 2000® has returned to the CME giving futures and options traders seamless access to mid-cap equities and margin offset benefits. Weekly volume has nearly tripled since the contracts were first listed on July 10th, and all positions will need to be transferred from the ICE to the CME once September expires (details […]
Did you know you can access the CFTC Commitments of Traders (COT) report in QuikStrike? Last week, for example, money managers continued to short precious metals with their first net short in silver since August of 2015: Such a crowded short trade might be viewed as a good entry point by contrarian bulls; a […]
In anticipation of the Fed announcement due out tomorrow at 2PM ET (press conference at 2:30PM ET) the market is pricing a one-and-done 25bp rate hike from a target range of 0.75-1.00% to 1.00-1.25%: For future meeting dates and additional details check out the CME’s FedWatch tool powered by QuikStrike. Using Weekly Options to Manage […]
For a product specific overview of recent moves in volatility, open interest, and volume all in one place, check out This Week in Options under Market Dashboard → TWiO Report. The symbols for the selected expirations with their respective expiration dates and days till expiry are on the left followed by the at-the-money (ATM) strike […]
You can think of QuikSkew™ as a snapshot of the shape of the volatility curve that normalizes for high/low volatility environments. The format is a number followed by the letter “P” and then another number followed by the letter “C” as shown here: This example is from the TWiO Report, so the QuikSkew ™ measure on top (bold, blue […]