Welcome to this episode of The Futures Rundown brought to you by T4 Futures and Options.
With your host Mark Longo and guest Dan Collins
The Trading Pit
- What’s catching our eyes in the futures markets this week
The Contract Specs Segment
- Let’s get crude and talk about crude oil (contracts/trading examples)
Futures Free For AllÂ
Answering your futures questions:
- What impact the new bitcoin etfs and options will have on the crypto futures products currently trading
TRANSCRIPT
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And now it’s time to break into the futures markets.
It’s time for the Futures Rundown.
All right, everybody.
That music means we are back once again with the latest addition to the network.
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See who’s joining us on the Futures Rundown for this week.
I’m pleased to welcome back to the network.
Our old friend hasn’t been on in a while.
Mr.
Dan Collins, the Futures man about town these days used to see his byline over there running Futures magazine, but he’s done pretty much a little bit of everything in the world of Futures.
Dan, welcome to your inaugural appearance on the Futures Rundown, sir.
Hey, Mark, it’s great to be here.
And Dan, I kind of get a quick overview, but this is obviously a new show and your first appearance for a lot of our listeners.
So give our listeners a quick overview of your background in the world of Futures.
Well, I’m old.
I’ve been around for a while.
I actually worked on the floor when there was a floor starting in the late eighties.
I was studying for journalism, so it took me a while to get there.
But in 2000, I started out at Futures magazine, had every editorial position up until editor in chief when we transitioned to modern trader magazine.
That’s what we went to and FuturesMag.com.
Did that about up until 2018.
And since then, I’ve been, you know, I did a lot of profiles.
I’ve been writing people for various different groups and Mr.
Topstep, different areas covering managed money and markets and, you know, step it away a little bit.
The old days of FuturesMag, man, I miss those days, sir.
Good times, good times out there in FuturesMag.
Maybe we’ll see it make a return someday, but you mentioned the trading pits.
Let’s dive into them now, listeners.
It’s time to break down all the action that’s lighting up the Futures markets this week.
What’s limit up and what’s crashing and burning?
Let’s find out.
It’s time to enter the trading pit.
All right, everybody.
Welcome to the trading pit where we break down what’s lighting up our collective tapes out there in the Futures market this week.
And a bit of a mixed bag out there this week kind of depends where you’re looking on the equity front.
Things are getting a little bit skittish this week, which is probably why one of our biggest gainers in the Futures market this week is actually in the vol space.
In fact, spoiler alert, I’m going to jump to the lead right now.
Over the past pretty much week, we’re seeing that October VIX future.
Again, I know vol fans get a little bit upset when they hear percent of a percent, VIX is a percent after all, but just have to make do with it.
9.6% to the upside for that future in VIX land.
Things getting a little bit skittish out there with this Middle East tensions ratcheting it up.
We saw the equity markets sell off to kick off the week and have been mostly listless to kind of retasting the red.
Today they’re flirting with the green, but they were red earlier today as well.
So that’s why we’re seeing VIX kind of taking the lead out there this week.
Again, that’s why I love this show.
We can kind of look at a broad gamut of products right below it.
We were talking about a little bit last week with Scott from Prosper.
It’s lithium, the Jan future in lithium up almost 7% this week, about six and three quarters percent out there.
So a bit of a run in lithium.
He was saying last week he’s not buying this run in lithium, but it’s been a nice little pop if you’re long some of the lithium stocks out there as well.
It’s been a pretty decent run.
So intriguing stuff below that.
Number three, we have the hard red wheat, the December contract up a little over six, about six and a half percent below that going out to the metals, but not the precious stuff you may be familiar with.
We’re going out to, as the Brits say, aluminum, the D’s contract up 6% and below that man, just stay what a gamut this week.
Spring wheat, the D’s contract up nearly 5% this week.
And there are some losers of course as well.
We’ll go in reverse order now the way we’re supposed to.
Vicks just kind of distracted me there, listeners.
Ether, the Ether futures, October future, taking it on the chin.
We talked about that a little bit on the crypto rundown on Monday off about four and two thirds percent this week.
Coffee right below it after having a nice run, the D’s coffee coming in nearly 5% this week.
And then going out to dairy, we’ve been talking about cash settled cheese and all these other dairy products for a while.
Butter, cash settled butter, not feeling the love this week, the October future off nearly 5%.
And going out to orange juice again all over the place this week.
That’s why this show is so fun.
No orange juice future off 5 and a third percent.
And then leading the list of losers.
So not a list you want to be at the top of.
It’s the D’s cocoa future off nearly 12% this week, 11 and three quarters percent.
So a lot of living being done out there.
But Dan, you are our guest.
I will turn the spotlight over to you now, sir.
What’s catching your eye in the futures markets this week?
Well, I’ll tell you, you could have stopped right at the beginning right there because it’s been a little bit while.
So I’m kind of looking what we talk about.
There’s only one word, right?
Volatility.
We have an election upcoming that may be pretty vital.
We have a war in the Middle East that’s just getting hot.
We have another war in Europe.
We had some major hurricane hit the United States.
So volatility is a number.
What they ever just remind you, there are no losers, right?
And futures, cause you can be sure all these contracts.
That’s how I could tell you’re a hardcore futures guy.
Cause whenever I say winners and losers on this show, the hardcore futures, people always bristle at that.
They say, well, I can talk for a year.
I’m making corrections.
And obviously, you know, you, you go to crude oil cause you go to energy with, with the wards and you know, it had a little bump, but, but you know, not the type of bump you necessarily expect.
It’s actually been pretty stable.
Um, because I remember the last, very last time I talked to you, I was making the point of following the technicals on crude oil because there’s some huge trend lines.
And this is going back a few years that they followed.
But I think right now we’re in a spot where, um, the, you’re following the fundamentals cause there are a lot of them out there.
Speaking of fundamentals, you know, a lot of people are asking, going back to, you mentioned the vol, the flip side of vol, of course, is what’s going on from an overall broad equity market valuation perspective.
That’s a big driver of volatility for a lot of people.
People are starting to look a little bit skittish at these levels out there right now.
I was just recording a show with our buddy, Mr.
Matt from ORATs yesterday on the advisors option.
He was saying his models are starting to look a little bit dire out here.
What are you feeling about these, these latest dips to the dark side we’re seeing in the equity space?
I think this is a, maybe a sign of things to come.
Is it, as you mentioned, just kind of all of the vol that’s being baked in right now with the election in the near future.
And of course the hurricane in the middle East, is this just kind of the table stakes for being in the market right now?
Or are you thinking maybe we have a little bit of a, a sea change to come in the market going forward?
I don’t know if we have a sea change, but we’re sitting there at our near all time highs.
Right?
So I mean, that’s always a place to be cautious at.
And you know, you have surprises and not, not to sugarcoat it.
This is, you know, what’s being offered our choices in the election are pretty stark.
People in America tend to discount that, but that has the ability to create a lot of volatility.
And just if you, I was thinking about this and I was just writing down and it just keeps on dropping.
You know, you have volatility drivers because especially in the commodities and energy, the escalating war in the middle East, which I mean, 180 missiles were sent from Iran yesterday.
That’s a huge thing.
The conflict in Russia and Ukraine, Russia took over a major city yesterday.
That’s related to energy.
Ukraine is one of the biggest suppliers of grain to Africa.
That creates volatility, doesn’t it?
I looked up Ukraine’s harvest, 224 harvest is projected at 54.6 million metrics tons, which is down from 60, which is down from pre-war quite a bit, I believe.
And to talk about, so that that’s all the ag markets.
Going a little bit more obscure if you want to see, I saw hurricane Helene shut down quartz production, high quality quartz production in North Carolina, which is the biggest driver of semiconductors, which, you know, some of that high tech, that’s almost like the new copper if you think about it.
So there’s, there’s, there’s a lot to keep your eye on volatility wise.
That there is, let’s see what’s lightened up our tape out here for this week.
We talked about the winners and quote unquote losers, even though I do agree you can be in either direction in the world of futures.
We got some volume winners this week, shall we listen?
Let’s lighten up the tape out there today.
Let’s do a quick top 10, breaking it down by month out here.
Number 10, we got a kind of a representative sampling again out here this week.
Number 10, we’re going out to December wheat, about 74,000 contracts on the tape.
Number nine, going out to the Dow futures E-mini 85,000.
By the way, you might be asking, where’s VIX fall on this list?
We were talking about it.
It’s right outside the top 10 with that October future coming in right below it, maybe number 11 or 12 at about 63,000 contracts for that AUC futures.
So VIX not quite there yet, but continuing to grow in volume.
Number eight, going out to the beans, Eno soybeans 94,000 contracts on the tape there.
Number seven, Nat gas, no over Nat gas, 100,000 contracts, pretty much exactly on the tape for them.
Number six, gold going out to December right now, 104,000 contracts on the tape.
These are pretty much today as of Showtime listeners.
Number five, going out to corn as the Dec corn contract, a buck 52.
So again, kind of all over the place today, which is kind of fun.
Number four, Dan’s favorite, it’s crude oil WTI, no contract, 279,000 counter.
Now we’re getting into a list of number three is the NASDAQ E-mini, the D’s contract as well a 305,000 fascinating to see so much D’s when everyone’s fixated on zero day these days.
It’s a conversation for another day.
Number two off to the S and P E-mini, because of course it is D’s contract, 765,000 contracts on the tape there.
And the big dog December in the 10 year note, once again, 1.27 million contracts on the tape out there.
So a lot to unpack Dan, anything else catching your eye in the trading pit before we move on into your favorite product for some contracts backs, which is crude, sir.
Well, I, we could talk about wheat obviously, because that’s, that’s, that’s a global product.
And when we’re talking about the volatility, that’s global.
When we were talking about a Russian Ukraine war, Ukraine has become the, you know, the bread basket to the world’s in a certain respect, especially outside the US.
And what occurred to me when you talked about VIX, it’s like, we were talking volatility in a broad sense.
All those commodities markets we’re talking about may be at risk of higher volatility than equities at this point.
I’d get your opinion on it because I mean, you’re a little bit closer, but you know, the volatility drivers in the world is, is really more commodity based.
And maybe we can even talk about currencies because they’re based on commodities as well.
Yeah, you’re right.
You know, when we tend to talk about volatility, we tend to fixate on domestic and on equities.
For a lot of people, that’s the lens through which they view the market.
But you’re right, you know, looking internationally, look at just what happened a few years ago with the disruption with Ukraine.
We saw wheat exploding, we saw Nat gas exploding.
So a lot of the commodities out there really felt the brunt of that shock out there.
And you’re right.
If we see another, let’s say escalation in the Middle East, which does unfortunately seem to be the way we’re heading with the conflict now spilling out into Lebanon as well, Iran getting involved, that does pose broader implications for shipping crude throughout that region, shipping all sorts of commodities in and around that region.
You’re right.
We look at VIX and we kind of get fixated on VIX because it’s the quote unquote fair gauge people have played around with and they do exist listeners.
If you want to see volatility indices for the rest of these products we talk about, CME does distribute them.
If you just look up CME and then CVOL, C-V-O-L-S stands for pretty much the CME volatility indexes.
They have them on pretty much all of these products.
We’re talking about the AGs, the metals, FX rates, etc.
We break them down every week on this week in futures options.
So I definitely encourage you to check those out.
But those have been starting to percolate and been starting to be intriguing out there.
So a lot of interesting things to watch.
Speaking of interesting things, I think it is time to break down some of the nuances and one of the more popular and certainly one of the products that’s getting a lot of mindshare out there these days.
I think it’s time to get a little bit crude.
It is time for the contract specs.
Have you ever looked at a futures product and said, “What the heck is that?”
Let’s find out together.
It’s time to get the contract specs.
All right, everybody.
Welcome to the contract specs, the portion of the show where we dig a little deeper into a popular, maybe a not that popular trading product, explain what the hell it is and then give you some examples of how it works in the real world.
And Dan, a little birdie told me here that you’re a big fan of all things WTI and crude oil.
Is that the case, sir?
Well, it’s one of the markets you follow.
It’s one of the most interesting markets out there.
I will say from an explanation perspective, I like crude oil because it’s easy for people to make sense of it.
The notional value is easy to calculate.
It trades in nice, easy round numbers.
It’s a lot easier than some of these other products that have really funky ticks and all sorts of crazy notional values.
It’s pretty straightforward.
So let’s get to it, listeners.
Of course, we’re talking about WTI, which stands for West Texas Intermediate.
That is the big kind of domestic crude contract here in the US.
Of course, if you go international, Brent is very popular as well.
We’re focusing right here on the WTI contract.
A ticker symbol you’re going to see it on most platforms, CL out there.
Let’s get into some of the specs, shall we, listeners?
And again, this is why I like this one, a nice, easy to understand round number contract.
For example, the size of the contract.
This is a big boy.
This is a big boy.
And it’s a thousand barrels of WTI listeners.
So WTI, that’s a lot of crude at the end of the day out there.
So if that’s a little bit too much size for you, don’t worry.
We have an alternative coming up for you in a little bit.
Trading hours going to be pretty much the same we see across the board with a lot of the products we’re going to talk about here.
You’re talking your pretty much your Sunday to Friday, 5 p.m. to 4 p.m. central.
You get a 60 minute break every day to reset the clock out there.
And obviously not a lot of trading really there on Saturday.
So not a full 24/7, but a pretty active trading week nonetheless.
Tick size is pretty much a cent.
So it can tick in a cent, $70 and one cent, $70 and two cents.
So it’s very easy to wrap your head around.
It’s very standardized pricing.
And that’s going to be a tick size of one cent per barrel.
Now remember, your contract size is for a thousand barrels.
So that’s going to be one cent times a thousand.
So you can do the math pretty quickly.
The tick value, the value of one tick per contract, it’s going to be $10 per contract.
Now Dan, one of the things that spooks people about futures, and we kind of joke about it in our intro, they’re afraid if they trade a product, they hit the wrong button, they’re going to get a truckload of whatever it is.
Wheat, soybeans, crude dumped on their lawn in the middle of the night.
Is that the case for crude, sir?
Is this a physically or a cash settled contract?
It is physically settled.
I don’t think you need to worry about that if you’re trading, you know, lumber.
I’m trying to think of some of the more obscure, oh, that’s an issue.
Anything is liquid, it’s crude, although you do not need to worry about that.
Yeah, we joke about that, listen, but most of your brokers are not going to let you take delivery anyway.
They’re not set up for that.
So it is a physically settled contract, but you don’t have to worry about the proverbial truckload of a thousand barrels of crude being dumped on your lawn in the middle of the night.
And I’ll get into some of the other nuances, margin, of course, the devil is in the details with any of these futures products.
And we talked about it before, there’s intraday, there’s overnight, there’s initial, all types of different margin.
We’ve explained a lot of that in our earlier episodes.
If you missed any of those, go back and check them out.
We try to get a nice representative sampling of what the brokers are offering for kind of that intraday initial margin.
That’s the way a lot of you are going to engage with these contracts.
And also it’s the way a lot of these futures and brokers market themselves.
They compete on intraday initial margin and trying to make it as reasonable for you as they can.
Looks like a good average for intraday initial margin for crude oil.
The big contract is going to cost you $1,641.
Dan, an interesting little nuance we noticed here.
I’d be curious to get your thoughts on this as a long time futures guy as well.
One of the things that we like and we pointed out with a lot of the contracts we’re talking about here on the show and you mentioned earlier in the show, you can go either way with futures.
You can go long or short.
And the margin usually reflects that.
Usually the margin for long overnight, short overnight positions, it’s going to be the same.
And what we’re seeing here looking across the board here in crude oil is actually a little bit different.
We’re seeing the long overnight margin is a little bit higher than the short overnight margin, which is kind of intriguing.
Have you noticed that?
And do you have any reasoning as to why that might be, sir?
Well, there’s kind of an optionality to that, isn’t there?
There’s more risk on one side.
You usually see that with puts and calls, that kind of difference, but not necessarily with futures.
But I think it goes back to the global risk we’re seeing right now.
Though, it seems to me that crude oil is at a pretty stable level right now.
US is pumping more than anyone else.
But I mean, when you have bombs flying in the Middle East, you’re going to have more risk to the upside.
Interesting stuff out there.
So yeah, listen, this is one of the first products we’ve broken down.
And the very admittedly short history of this program where we are seeing a little bit of a discrepancy out there right now, that average of that long overnight margin, $6,564 versus short is about $5,700.
So you’re talking almost $1,000 difference out there, which is not insubstantial.
So again, kind of reflecting where the risk is in the market right now.
Let’s walk through an example.
Then Dan, I want to get your thoughts on this as well.
Are you coming into crude oil?
You’re bullish crude oil, because why not, listeners?
You come in right now, as we kicked off the show, crude oil again, performing well, was trading at pretty much right exactly an even level, right around $70.
If you know, if you’ve been listening to this show or some of our other shows on network for a while, crude oil has been flirting.
WTI has been flirting with the mid 60s for a while and people were starting to get a little bit skittish.
We’re obviously above that now.
So coming into the start of the show, crude oil right around $70 bucks, exactly.
So remember the notional value of that contract, 70 times a thousand barrels, $70,000, pretty straightforward stuff when it comes to how you calculate the note.
That’s why I like WTI.
Listen, it’s very easy for newcomers to wrap their heads around it.
Now we mentioned those intraday margin levels.
That intraday margin for WTI is $1,641 out there.
So again, you don’t have to put down the full $70,000, not even close, $1,641, because you’re only looking at an intraday trade.
You’re looking to take a nice little swing for the fences to the upside in WTI.
So you buy one contract, you deposit $1,641.
Then it’s your lucky day.
The Saudis announced a massive, massive production cut, crude spikes across the board.
And you know what?
Crude rips up, WTI rips up to $75 by the end of the day.
Not going to see that too often.
But you know what?
Say, LaVie, that’s the case out there.
We mentioned it’s one penny increments out there.
So obviously a penny, every full point in WTI is going to be 100 pennies or 100 ticks.
We moved five full dollars in WTI at the end of the day.
So you can do it a couple of ways.
Five bucks times 1,000 barrels is of course $5,000.
Or you can look at 500 ticks.
That’s a lot of ticks. 500 ticks.
And again, these are $10 per tick in value.
So that’s $5,000 as well.
Either way, you made $5,000, which is a nice return on that 1,641, over 300% you made out there on that intraday initial deposit.
Dan, kind of an extreme example.
We’ve been outlining some losers lately on the show as well.
So we thought we’d turn it up to the bright side and have some winners.
But what are your thoughts on that example for crude oil?
Is there anything you want to add?
Yeah.
I mean, I wanted to pull up and whenever it’s important.
And now it doesn’t move tick for tick.
But you have to look at the US dollar because it’s traded in US dollars.
So that needs– it doesn’t trade inversely, but it informs the price of crude.
In the middle of July, the dollar was above $105.
And it dipped below a couple of days ago par.
It’s back up there.
So that gives you a– it defines high and low.
And you cannot trade crude without an understanding of what the dollar is doing.
So I just wanted to make that point because that’s really crucial because it really– it informs it.
Like I said, it doesn’t move inversely to the dollar.
But if the dollar is very high, that’s giving you a high price regardless of what the actual price is.
An excellent point, sir, as we keep on rolling out there.
And maybe you’re saying to yourself, that sounds great.
But that’s a lot of crude, 1,000 barrels to get exposure to.
Maybe that’s a little bit too much for me.
You know what?
CME agreed.
So they have a micro for you as well.
Now when we say micro, it’s still a pretty big contract.
That’s 1/10 the size of the other contract.
Obviously 1,000 barrels.
This is going to be, therefore, process of elimination, 100 barrels out there.
So pretty much take everything we just said and divide by 10 for the most part.
Contract size, that of 1,000.
Now you’re talking 100 barrels. 70 bucks, same current trading price.
So 70 times 100.
You’re talking a notional contract value now of $7,000 versus $70,000.
Tick size is going to be a cent again.
So now you’re talking about one cent times 100.
So that means $1 worth of tick value per contract.
And we have the exact same move.
You come in and you buy a micro future out there, which by the way, the margin is not going to be 1/10.
The margin is not quite a third, a little bit more than that. $659 for the intraday initial margin on micro WTI.
So again, these margin numbers, they do vary by broker.
And it’s kind of a bit of a dark art how they calculate these.
But still interesting.
We want to give you representative numbers here on the show listeners.
So you come in, you want to do a one lot of the micro, the micro WTI.
You deposit $659.
Again, you’re only going to be doing an intraday, taking a nice intraday bite of the apple.
Again, same thing happens.
Saudis OPEC kicks in a nice aggressive production cut.
Crude rips to $75.
Again, you made $5.
You can do it a couple of ways. $5 per barrel times 100 barrels, $500.
Or you can look at your 500 tick example again, which seems to me to be a little bit more confusing way to do it, $500.
But then again, teach their own out there at the end of the day.
A 500 ticks times $1 tick, $500.
Either way, at the end of the day, you deposit at $659.
You made $500.
So pretty good.
About 75% return.
Not bad for a few hour long trade out there at the end of the day.
Dan, anything you want to add on the micro versus the, I guess you can call them the macro futures, even though when we look at micros, I think people are expecting these really, really small, let’s say the S&P micros.
The micro WTI is still 100 barrels.
So they’re not messing around, Dan.
Okay.
No, because there was a mini on the stocks, you know, and the S&P side, then a micro, which was like one tenth over again.
Yeah, there’s an important point because let’s say you can trade.
You may be just able to trade one regular contract or maybe it’s too big.
You could only trade a half of one.
That means you can trade five for the micros right now.
That’s really important in the volatile market because that means you can get in using your example, set a relatively close stop.
You get the $5 bump.
You can take that profit on one or two of those.
Then you move your stop off.
Then you’re able to play a little bit.
And that flexibility in trading is really, really important.
You don’t want everything to, you don’t want to turn every winner into a loser and you don’t want to lose opportunity by, you know, getting stopped out or getting scared and taking a small profit by using the micro and being able to trade, let’s say five of them you can take small profit.
You can move your stops up and you can let something run.
And then you can keep, you know, if it’s going in your direction, you can keep on lifting that stop up.
So that’s, I think that’s probably one of the most important elements because that’s what the large traders would do with the bigger contract, right?
Well said sir.
And speaking of how we say things, listen, as it’s time to get your feedback in a segment we call the futures free for all.
Ring the bell.
It’s time to take on all comers in an epic Q and A battle royale.
All questions can enter, but none can leave without an answer.
It’s time for the futures free for all.
All right, everybody.
Welcome to the futures free for all Dan.
I’m just taking a look at our live chat while we’re going.
And it seems like you have some fans in here, a live chat saying fun show today.
Good to hear Dan back on the network.
So there you go, Dan.
You got some fans.
What do you say?
Oh, it’s good to be heard.
Good to be heard.
Let’s see what else our listeners have on the brain this week, Dan.
Let’s see really quickly here.
Let’s pay off our actually our poll question from last week first because it kind of plays right into the question we got this week from Nico last week.
Our poll question was asking you shall receive after months of waiting, the SEC finally approved options trading on the Bitcoin ETFs.
In this case, it’s the first and the biggest one.
It’s the BlackRock ETF, which is I bit.
We asked you folks out there, do you plan to trade I bit options when they are listed?
Heck yes.
Hell no.
Or I prefer Bitto or Bit X or something else.
And as we expected, 63.2 percent of you said, heck yes.
Hell no.
31.6.
It was much higher for heck yes, until right in the end, some negative Nancy’s got in there right at the end and turned it up to 31 percent.
But you know what?
For the most part, you folks still are really excited about these.
And then 5.3 percent saying you prefer other products like Bitto or Bit X, which actually do utilize the Bitcoin futures, which gets us to our question of the week this week from Nico.
He wants to know, hello.
Well, hello, Nico.
So just discovered this show and the network on iTunes and I’m blown away.
Well, welcome to the party.
You’re 17 and a half years late, Nico.
But you know what?
That’s why we keep launching new shows to get new folks like you and maybe your future is curious.
You weren’t options curious, so we didn’t really have an offering for you.
Now we do.
And now you’re discovering the whole network as a result.
So welcome to the party.
Nico and everyone else who’s just discovering us for the first time, he says, been thinking about the new Bitcoin ETFs and the options on them.
What impact do you think this approval will have on the crypto futures products currently trading on U.S. exchanges like CME?
I can’t imagine this will be a good driver for volume.
Do you think we’ll see volume start to dry up in these futures as people opt for ETFs that hold the physical instead?
Well, a lot to unpack.
Dan, let’s start.
I’d like to get your thoughts on the whole Bitcoin ETF, brouhaha, we’ve been seeing for the better part of this year.
They approved the ETFs back in January and then kind of stealthily going into the weekend, snuck out an approval for the options on said ETFs a little over a week ago now.
So first off, what are your thoughts on those that kind of that whole evolution of the crypto ETF landscape?
And then as as Nico wants to know, what do you think the impact is going to be on some of the futures based products like the biddos or of course of the futures on CME that the biddos and others are drawing on, sir?
I have to say I’m a bit apprehensive of the whole crypto universe.
I think it kind of crept up on the regulatory world and they were too slow to do anything about them.
Now they’re stuck with them.
But and people will trade if you have a good idea of what’s going on, I’d say trade actively.
I wouldn’t want to hold it because you’ve seen the big extensive moves that could really end you.
But on the future side, they have a clearinghouse that that stands behind everything they do.
So typically, additional products is good for the futures product.
You know, it is not a competing futures product.
So people will always have the the clearinghouse to lean on.
And and and typically, you’ll have a lot of traders, you’ll have a lot of arbitrageurs.
So typically, these additional products will be good for the futures product.
That was a one dry up.
It would create more trading, more arbitrage opportunities.
And it might be beneficial for the whole market itself because then you have a little bit more liquidity.
I like your optimistic outlook on all things on life and on on the Bitcoin options here as well, because you’re right.
Usually more products at the end of the day, the rising tide does lift all boats.
It will be interesting to see, again, the products like Bitto and others are driving a lot of the volume in the futures right now at CME through the rebalancing out there will be interesting to see if some of the volume does get siphoned off of Bitto into products like I bit if that has some impact at the end of the day.
But at the end of the day, Dan is right.
Volume does be get volume folks are driving volume into one product they need to hedge.
They need to get exposure with another.
So it does usually tend to spill over into other products.
I’m going to choose to go the Dan route, the optimistic route and say that a rising tide lifts all boats.
All right.
That is going to do it for us on the futures rundown this week.
Before we go, Mr.
Dan, I want to thank you.
Did an excellent job on your return here to the network.
I will have to get you on again in the near future, sir.
Certainly, Margaret.
It was good to be here.
I had a lot of fun.
And if folks want to keep up with what you’re thinking and looking at in the futures world, where should they go?
What should they do, sir?
Oh, well, I’m going to have to just say stay tuned.
I have a couple of projects in the works with a few groups out there, but nothing out there right now.
We’ll have to stay tuned to your next appearance on the show then.
What do you think about that?
Sounds good.
All right, listeners, stay tuned for his next appearance coming up on the network soon.
And of course, you know where to go in the meantime to check out more information, maybe kick the tires on some of these futures for yourselves.
A T for futures and options is the thing to type into your browser or just go to ctsfutures.com to learn more.
That’s going to do it for us on the network today.
Back again tomorrow for our usual Thursday doubleheader, kicking off in the morning with the option block and our friends over there at SIBO, followed by this week in futures options with our friends over there at CME talking about all the futures options side of the fence.
So very much the sister program to this one.
If you’re listening to this, you should be listening to Twi-Fo.
Friday, of course, a lot of Val, Dan said at the top of the show, Val is kind of the name of the game.
We have a whole show all about it.
Listeners called Volatility Views every Friday, noon central 1 p.m.
Eastern.
Of course, you can get all these on demand shows just by listening to our full network wherever you get podcasts.
It’s all available out there.
Then, of course, you want to go above and beyond, get additional content, additional exclusive programming.
The optionsinsider.com/pro is the place to go.
And we’ll see you back here next week, all the way through to next Wednesday.
Another episode of the Futures Rundown.
Stay safe out there, everybody.
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