TWIFO 186: Bitcoin Breakdown and Equity Analysis

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?