TWIFO 186: Bitcoin Breakdown and Equity Analysis

Feb 7, 2020

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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:

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

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?