TWIFO 175: A Gang of Volatile Products

Published: Nov. 1, 2019, 5:43 p.m.

  • HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
  • CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL

WHAT WERE THE MOVERS AND SHAKERS IN FUTURES OPTIONS THIS WEEK?

RATES

  • FED CUTS RATES FOR THIRD TIME THIS YEAR
  • FED CUT BY A QUARTER POINT
  • WAS EXPECTED BY THE MARKET - FEDWATCH TOOL WAS AT 95%
  • QUESTION FROM NEIL: What is fedwatch saying now about cut in Dec?
  • QUESTION FROM NTILL: Did you guy see the recent issue with eurodollar quotes? Maybe this is what’s driving some of the volume in the options lately? RE: THIS STORY - Futures Exchange Reins In Runaway Trading Algorithms

 

 

EQUITIES

  • DOUBTS ON THE TRADE DEAL SPOOK THE MARKET IN THE WAKE OF FED DECISION
  • VIX 13.35 - UP .35
  • VVIX: 86.5- UNCHD FROM LAST SHOW
  • VXX: 19.95 - NEARLY UNCHD FROM LAST SHOW 
  • RVX: 17.40 - DOWN .3 FROM LAST WEEK 
  • VIX/RVX SPREAD - 4.05 - SLIGHTLY WIDER THAN LAST WEEK

WTI

  • Oil falls 1% as US inventory rises

NAT GAS

  • Natural Gas Experts: 'Follow The Money, Forget The Cold' 

METALS

  • Gold futures climb above $1,500 to log highest finish in 5 weeks

FUTURES OPTIONS FEEDBACK

  • QUESTION FROM JAKE: Why do products like dairy and iron ore that move quite a bit have such light or nonexistent options volume?
  • QUESTION FROM LILEANTHAL: What’s the answer as to why weekly WTI options don’t trade?
  • QUESTION FROM BEAMS: I think the long-term russell 2000 put trader is a seller taking advantage of inflated put skew to generate higher premiums than comparable spy strikes. Thoughts?
  • QUESITON FROM ELTIM: Do you buy that metals only selloff when the calls are bid?