TWIFO 186: Bitcoin Breakdown and Equity Analysis

  • HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
  • CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL
  • CME HOT SEAT GUEST: TIM MCCOURT, MANAGING DIRECTOR AT CME GROUP, GLOBAL HEAD OF EQUITY PRODUCTS

ON TODAY’S EPISODE, MARK, SEAN AND TIM DISCUSS:

  • MOVERS AND SHAKERS FOR THE WEEK.
  • TOPICS FEATURED INCLUDE CRYPTO, EQUITIES, WTI AND COPPER.

CRYPTO

  • THE LAUNCH OF BITCOIN OPTIONS
  • DISCONNECT BETWEEN BITCOIN FUTURES VOLUME AND BITCOIN OPTIONS VOLUME
  • FACTORS DRIVING THE RECENT UPTICK IN BITCOIN OPTIONS VOLUME – 48 CONTRACTS TRADED ON MONDAY
  • CME’S PLANS TO GROW BITCOIN OPTIONS VOLUME
  • ARE THERE PLANS FOR A MICRO/MINI BITCOIN CONTRACT TO DRIVE MORE RETAIL ADOPTION?
  • WHEN CAN WE STOP QUOTING BITCOIN VOLUME IN NOTIONAL VALUE?

EQUITIES

  • VIX: 15 – DOWN 2.3 FROM LAST SHOW
  • VVIX: 91.3 – DOWN 10 FROM LAST SHOW
  • RVX: 16.5 – DOWN 2.75 FROM LAST SHOW¬†
  • VIX/RVX SPREAD – APPROX. 1.5 – .5 TIGHTER THAN LAST SHOW
  • OVERVIEW OF CME EQUITY OPTIONS COMPLEX IN 2019 – HIGHS AND LOWS, VOLUME TRENDS, DEVELOPMENTS, ETC.¬†
  • FACTORS DRIVING THE INCREDIBLE ADOPTION OF EQUITY MICRO FUTURES. ANY PLANS FOR MICRO OPTIONS?
  • THOUGHTS ON CURRENT EQUITY VOLATILITY LANDSCAPE AND HOW PANDEMIC FEARS ARE IMPACTING VOLATILITY/VOLUME.

WTI

  • DIPPED BELOW $50 THIS WEEK – FIRST TIME IN MORE THAN A YEAR
  • NOW OFFICIALLY IN A BEAR MARKET – NEARLY 25% OFF ITS 52 WEEK HIGH OF $66.60 FROM APRIL 2019
  • WTI CRUDE HAS DECLINED 20% IN THE PAST MONTH, AND IT COULD SHED ANOTHER 10%, BASED ON HISTORY.
  • WHEN CRUDE OIL FALLS BELOW $50, IT TENDS TO STAY DOWN, AND A NEGATIVE TREND IN THE S&P 500 FOLLOWS.
  • OPEC & RUSSIA CONSIDERING EMERGENCY PRODUCTION CUTS – WILL THAT BE ENOUGH?

COPPER

  • BIG MOVER THIS WEEK

FUTURES OPTIONS FEEDBACK

  • QUESTION FROM DEMOCAT: ARE THERE ANY PLANS FOR MINI (MICRO) RUSSELL OPTIONS?
  • QUESTION FROM ELLIE: ARE THERE STILL SIZE LIMITS ON HOW MANY EMINI S&P FUTURES YOU CAN TRADE ELECTRONICALLY ON GLOBEX?
  • QUESTION FROM BELDEN: WHAT ARE THE PLANS FOR THE ETHER REFERENCE RATE GOING FORWARD?

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