
This Week in Futures Options
Gold, crude oil, corn, soybeans and more - with so many tradeable products the futures options market is an intimidating place. How can you possibly keep track of the latest trading activity across so many different products? Don’t worry - we’ve got you covered. Welcome to This Week in Futures Options - the program designed to help active futures options traders stay on top of this ever-changing marketplace. Each week we’ll break down the top trades, hot products, volatility explosions and much more. Whether you’re an experienced veteran or a newcomer looking to separate the wheat from the lean hogs, This Week in Futures Options has the information you can’t find anywhere else...
Latest episodes

Jan 24, 2020 • 44min
TWIFO 184: Pandemics Boost Gold and Spook Crude
HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CME HOT SEAT GUEST: SCOTT BAUER, PROSPER TRADING ACADEMY ON TODAY'S EPISODE, MARK AND SCOTT DISCUSS: CMEGROUP RECORD INTERNATIONAL AVERAGE DAILY VOLUME IN 2019. MOVERS AND SHAKERS FOR THE WEEK. TRADES IN EQUITIES, CRUDE, GOLD AND SILVER. STRANGE SHIFTING NARRATIVE ON THE WEEK IN CRUDE - SUPPLY REDUCTION FROM LIBYA TO START THE WEEK AND THEN ONE-TWO PUNCH OF A SUPPLY GLUT AND DISEASE FEARS. OIL: IS MIDEAST RISK PREMIUM TOO LOW? GOLD FUTURES MARKED THEIR HIGHEST SETTLEMENT IN OVER TWO WEEKS AS THE SPREAD OF THE CORONAVIRUS IN ASIA FED RISK-OFF SENTIMENT AMONG TRADERS, PRESSURING GLOBAL STOCK MARKETS AND U.S. BOND YIELDS, AND BOOSTING HAVEN DEMAND FOR THE PRECIOUS METAL. AND MUCH MORE...

Jan 17, 2020 • 1h 4min
TWIFO 183: Bitcoin Options Are Finally Here
TWIFO 183: Bitcoin Options Are Finally Here HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL GUEST: NICK HOWARD, BANTIX TECHNOLOGIES CRYPTO CME BTC FUTURES CRAZY WEEK LEADING UP TO OPTIONS LAUNCH FRIDAY - 13,522 THURSDAY - 10,500 WEDS: 17K TUES: 12K MON: 6,600 OI HIT 7 MONTH HIGH OPTIONS - 54 CONTRACTS OPENING DAY EQUITIES VIX: 12.2 - DOWN .75 FROM LAST SHOW VVIX:89.25 - DOWN .25 FROM LAST SHOW RVX: 14 - DOWN 1 FROM LAST SHOW VIX/RVX SPREAD - APPROX. 1.8 - SLIGHTLY TIGHTER THAN LAST SHOW SOYBEANS -2,15% THIS WEEK SOYBEAN OIL DOWN NEARLY 5% VOL CRUSHED THIS WEEK AFTER TRADE DEAL SIGNING LOOKING AT AG VOLATILITY RATES INSANE STUFF GOING ON IN EURODOLLARS DOWNSIDE RIGHT NOW. BREAKING DOWN SOME FUNKY EURODOLLAR PUT SPREADS FUTURES OPTIONS FEEDBACK QUESTION FROM TAMISH: THE FTSE REP ON THE PROGRAM MENTIONED THE STRONG INTERNATIONAL DEMAND FOR RUT OPTIONS AND FUTURES. THIS SURPRISED ME BECAUSE THE INDEX IS PRIMARILY DOMESTIC. WHAT ARE THE BIGGEST INTERNATIONAL MARKETS FOR THE RUSSELL 2000? QUESTION FROM ZAKI: ANY IDEA WHEN WE WILL HAVE SOME REGULATORY CLARITY ON CRYPTO? QUESTION FROM NEAL: ANY THOUGHTS ON EARLY CME BTC OPT VOLUME? SEEMED SOMEWHAT LIGHT TO ME? QUESTION FROM JACK: WHY DOES EVERYONE QUOTE CRYPTO IN NOTIONAL? EVEN CME IS DOING IT NOW? QUESTION FROM 5ROUND: ARE COVERED CALLS AS POPULAR IN RUT AS IN S&P?

Jan 10, 2020 • 1h 1min
TWIFO 182: Kicking Off A New Decade of Futures Options
TWIFO 182: Kicking Off A New Decade of Futures Options HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL CME Group Reports 2019 Annual Volume and Monthly Market Statistics - https://www.cmegroup.com/media-room/press-releases/2020/1/03/cme_group_reports2019annualvolumeandmonthlymarketstatistics.html Average daily volume (ADV) of 19.2 million contracts during the year and 15.5 million contracts during the month of December. Open interest at the end of December was 113 million contracts. Market statistics are available online in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume. Annual highlights across asset classes include: Record 40 trading days with volume over 25 million contracts, up 29% from 35 days in 2018 Record Interest Rate ADV of 10.3 million contracts per day, up 4% from 2018 Record Metals ADV of 668,000 contracts per day, up 5% from 2018 Record Options ADV of 4 million contracts per day, up 2% from 2018 EQUITIES VIX: 12.95 - UP .45 ROM LAST SHOW VVIX:89.5 - DOWN 9.25 FROM LAST SHOW RVX: 15 - UP .75 FROM LAST SHOW VIX/RVX SPREAD - APPROX. 2 - AROUND THE SAME AS LAST SHOW RUSSELL 2000 2019 PERFORMANCE UP NEARLY 24% IN 2019 OPENED THE YEAR AT 1346 ENDED THE YEAR OVER 1600 - CLOSED AT 1668 In 2020, Equities Are Partying Like It's 1999 By Erik Norland - https://www.cmegroup.com/education/featured-reports/in-2020-equities-are-partying-like-its-1999.html At the beginning of the 1990s, the US economy was heading into a recession, plagued by a crisis of small banks (saving and loans) and bad real estate loans. The Federal Reserve (Fed) was slashing rates, from 9.75% to 3%. At the beginning of the 2010s, the US unemployment rate was nearly 10%. The banking system was just beginning to recover from its most severe crisis since the 1930s. Housing prices had collapsed nationwide. The Fed was experimenting with zero rates and quantitative easing. Superficially, the beginning of the 2020s looks a great deal more like the state of the world in 2000 than in 1990 or 2010. Unemployment is below 4%. There are no obvious problems with the banking system. Real estate prices are on a modest upward trend but don’t appear to be in bubble territory (at least not in most of the US). Energy and materials prices are far from historical highs. METALS 2019 In Review: A Record Year for CME Metals Products - https://www.cmegroup.com/education/metals-update/2020-q1-metals-update.html Combined Futures and Options Average Daily Volume (ADV) was 668,327 contracts in 2019, a new record. Metals F&O have now set annual volume records in 4 consecutive years. Metals ADV increased 20% from December 2018, driven by 22% growth in precious metals futures and options and 15% growth in base metals futures and options Average combined Metals Open Interest of 3,662,788 contracts also set a record in 2019, showing consistent growth as volume increased. Gold Futures Open Interest set a record on December 31 of 786,166 contracts. GOLD Gold Prices Rise Above $1,600 on Simmering U.S.-Iran Tensions Shanghai Gold Futures Contracts Debut with Deep Liquidity and Robust Volume Since their debut on October 14, a combined 42,719 contracts have traded in the SGU (USD Denominated) and SGC (CNH) contracts. Use COMEX Copper Options to Manage Copper Price Risk Copper options average daily volume in 2019 was 2,812 contracts, up 101% YoY. COMEX Aluminum Suite Continues to Grow CME’s physically deliverable Aluminum Futures contract continues to gain traction, with Q4 average daily volume reaching 139 contracts (3,475 metric tons), 2019 Average Daily Volume across CME’s suite of Aluminum Futures contracts was 671 contracts, up 9% vs 2018 (Q4 1,057 up 82% vs Q4 2018). CRUDE Oil prices jumped 5 per cent after Iran launched strikes against US military bases in Iraq in retaliation for the killing of commander Qassem Soleimani. But by Wednesday afternoon gains in crude had reversed, with prices trading lower than before the Iranian general’s assassination. BRENT CRUDE: Having jumped when markets opened to as high as $71.75 a barrel, crude later dropped to below $66 a barrel, a near 9 per cent peak-to-trough swing in the course of a day. WTI: TOPPED OUT AT $63.27 - BEFORE DROPPING BACK BELOW $60 AGAIN. Oil tanker groups are taking a wait-and-see approach - Saudi Arabia, the world’s biggest crude exporter and a key US ally, has temporarily suspended shipments through the Strait of Hormuz, the narrow waterway separating the Gulf from Iran where 20 per cent of global oil supplies pass daily. However, Frontline, the world’s largest oil tanker operator, said that while it was “monitoring the situation closely” it had not “suspended trading in the area”. Opec and allies can ALWAYS increase supplies - “Not a single drop of oil supply has been lost due to the recent incidents and this is why the oil price has fallen back down again so quickly,” said Bjarne Schieldrop, chief commodities analyst at Norwegian bank SEB. CRYPTO Options on Bitcoin Futures. Coming January 13, 2020 - https://www.cmegroup.com/cme-group-futures-exchange/options-bitcoin-futures.html?utm_source=pardot&utm_medium=email&utm_campaign=bitcoin_options_launch&utm_content=email4_prelaunch FUTURES OPTIONS FEEDBACK QUESTION FROM ABHISHEK JAIN: dear sir, can you share a fee source of U.S. commodity option chain preferably gold and crude oil QUESTION FROM STEVE WIM: What was a weird trend that came on your radar in 2019? QUESTION FROM BKL61: What is the proper time frame for trading futures options? In case you can’t tell i’m pretty new to trading. Just discovered the program and I’m loving it and learning a ton. Thank you so much!. QUESTION FROM DEMOCAT: Are there any plans for mini (micro) russell options?

Dec 20, 2019 • 1h 3min
TWIFO 181: The Highs and Lows of 2019
TWIFO 181: The Highs and Lows of 2019 HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL CME HOTSEAT GUEST: RUSSELL RHOADS, HEAD OF DERIVATIVES RESEARCH, TABB GROUP WHAT WERE THE MOVERS AND SHAKERS IN FUTURES OPTIONS FOR THE YEAR? TOP 5 PALLADIUM: + 58% NASDAQ 100 EMINI: + 35.8% CLASS 3 MILK: +35.5% EURODOLLARS: 34.5% WTI: +31.5% EQUITIES TRADE WAR OPTIMISM LIFTING MARKETS, CRUSHING VOLATILITY VIX: 12.5 - DOWN 2 FROM LAST SHOW VVIX: 98.75 - DOWN 4.75 FROM LAST SHOW RVX: 14.25 - DOWN 2.75 FROM LAST SHOW VIX/RVX SPREAD: 1.75 - MUCH NARROWER FROM LAST SHOW DON'T LOOK NOW BUT SMALL CAPS ARE BREAKING OUT CRYPTO CME Bitcoin futures (BTC) turn two on Wednesday, December 18. FUTURES OPTIONS FEEDBACK QUESTION FROM AVAST!: What were your surprises for the year in fut-opts? QUESTION FROM ANGEL: Is there a level at which the rvx/vix trade becomes particularly attractive.

Dec 13, 2019 • 1h 8min
TWIFO 180: Metals Mysteries and Yield Curve Conundrums
TWIFO 180: Metals Mysteries and Yield Curve Conundrums HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CME HOTSEAT GUEST: ERIK NORLAND - EXECUTIVE DIRECTOR AND SENIOR ECONOMIST WHAT WERE THE MOVERS AND SHAKERS IN FUTURES OPTIONS THIS WEEK? RECENT CME RESEARCH METALS QUESTION FROM MELTIM: Do you buy that metals only selloff when the calls are bid? QUESTION FROM ELION: Any follow up data on the cme metal skew study? I find that one somewhat perplexing. Gold and Silver Options Pointing to a Pullback https://www.cmegroup.com/education/featured-reports/gold-and-silver-options-pointing-to-a-pullback.html Silver and gold options achieved exceptionally positive skewness late this summer. Exceptionally positive options skewness often precedes corrections. Even as of mid-October, gold and silver options skews remain unusually positive. Industrial Metals: Can Demand Meet Supply Challenge https://www.cmegroup.com/education/featured-reports/industrial-metals-can-demand-meet-supply-challenge.html Two decades ago, the main problem in base metals markets was insufficient supply to meet rising demand, particularly from China. As a result, prices soared. Copper prices rose 440% between 2000 and 2011. For aluminum, prices doubled between 2000 and 2008 despite a growth in supply. RATES/YIELD CURVE Which Yield Curve Foretells Growth Best? https://www.cmegroup.com/education/featured-reports/which-yield-curve-foretells-growth-the-best.html The private sector US yield curve remains inverted while the public sector curve flipped positive. Private sector yield curves have been better indicators of growth in the past 20 years. Yield curves misfired in the mid-1990s, predicting a slowdown that didn’t happen. Soaring equities could enable the economy to defy the yield curves’ suggestion of slower growth ahead. A larger budget deficit, however, could make it harder for the US government to fight off any slowdown. What Global Yield Curves Signal About 2020 Growth - https://www.cmegroup.com/education/featured-reports/global-growth-outlook-for-2020.html Yield curves are pointing to stronger growth in China, India, Chile and Brazil. Yield curves are pointing towards sharp slowdowns in the US, eurozone, Japan and Israel. All 23 yield curves examined have a positive correlation with growth 3-5 quarters in the future. There is a wide variance in the forecasting accuracy among the yield curves. FUTURES OPTIONS FEEDBACK QUESTION FROM DM75: What are you expecting when bitcoin options launch on cme next year? Happy Holidays to the OIR crew. You guys are the best.

Dec 6, 2019 • 1h 2min
TWIFO 179: DIRECTIONALLY INTIMIDATING CRUDE AND AGS
TWIFO 179: DIRECTIONALLY INTIMIDATING CRUDE AND AGS HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CME HOTSEAT GUEST: ADAM WEBB, FOUNDER OF MACROHEDGED WHAT WERE THE MOVERS AND SHAKERS IN FUTURES OPTIONS THIS WEEK? WTI OPEC MEETING BEGINS - OPEC AND ALLIES AGREE TO DEEPEN OIL OUTPUT CUTS OPECWATCH TOOL - https://www.cmegroup.com/trading/energy/cme-opec-watch-tool.html THERE'S NO DREAMY UPSIDE TO BE FOUND IN CRUDE RIGHT NOW. AGS SOYBEAN MEAL: DECENT OPTIONS VOLUME - ABOUT 40K ON THE TAPE THIS WEEK SRW: AKA SOFT RED WINTER WHEAT (AKA CHICAGO WHEAT) - ABOUT 80K CONTRACTS ON THE TAPE THIS WEEK CLASS 3 MILK: TRADING A WHOPPING 7500 CONTRACTS THIS WEEK EQUITIES TRADE WAR OPTIMISM LIFTING MARKETS, CRUSHING VOLATILITY VIX: 14.75 - UP 1 VVIX: 99 - UP 3.25 FROM LAST SHOW RVX: 18.50 - UP 1.75 FROM LAST WEEK VIX/RVX SPREAD: 3.75 - WIDER THAN LAST WEEK FUTURES OPTIONS FEEDBACK QUESTION FROM JACKSON KNIGHT: WHY IS IT SO HARD TO TRADE FUT OPTS WITH MOST MAJOR BROKERS IN 2019? SEEMS LIKE ITS STILL 2009 FOR A LOT OF THESE FIRMS WHO ONLY EXPECT YOU TO TRADE APPLE AND SPY? QUESTION FROM ANALYSIS1: WHY DO YOU GUYS TALK ABOUT SKEW SO MUCH? I FIND IT CONFUSING. QUESTION FROM MLLRTZ: CAN YOU DISCUSS OPEC WATCH ON THE SHOW? QUESTION FROM ELION: ANY FOLLOW UP DATA ON THE CME METAL SKEW STUDY? I FIND THAT ONE SOMEWHAT PERPLEXING. QUESTION FROM ELLIOTT: WHY DO SOME PRODUCTS DO LARGE FUTURES VOLUME BUT SMALL OPTIONS VOLUME? DOESN’T ONE USUALLY LEAD TO THE OTHER?

Nov 22, 2019 • 1h 2min
TWIFO 178: Corn, Conspiracy and Crude Oil Theater
HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CME HOTSEAT GUEST: RUSSELL RHOADS, TABB GROUP WHAT WERE THE MOVERS AND SHAKERS IN FUTURES OPTIONS THIS WEEK? RATES Eurodollars FedWatch Tool - https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html WTI HOW ARAMCO IPO WILL CHANGE OIL DYNAMICS by Blu Putnam AGS CORN Demand helps turn corn market green, soybeans turn lower EQUITIES Talking Russell2000 with Russell Rhoads TRADE WAR OPTIMISM LIFTING MARKETS, CRUSHING VOLATILITY VIX 13.75 - ALMOST UNCHD FROM LAST SHOW VVIX: 95.75 - UP 1 FROM LAST SHOW RVX: 16.74 - DOWN .01 FROM LAST WEEK VIX/RVX SPREAD - 3 - EXACTLY THE SAME AS LAST WEEK METALS Looking at Lower Gold Prices FUTURES OPTIONS FEEDBACK COMMENT FROM RCOUT: Corn baby! COMMENT FROM EKG3: What are some of the biggest futures options markets outside of the u.s.? QUESTION FROM ELLIOTT: Why do some products do large futures volume but small options volume? Doesn’t one usually lead to the other?

Nov 14, 2019 • 57min
TWIFO 177: FUTURES OPTIONS QUESTION PALOOZA
TWIFO 177: HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL GUEST: RICK ROSENTHAL - DIRECTOR OF BUSINESS DEVELOPMENT, FTSE RUSSELL INDICES - Cboe WHAT WERE THE MOVERS AND SHAKERS IN FUTURES OPTIONS THIS WEEK? EQUITIES TRADE WAR OPTIMISM LIFTING MARKETS, CRUSHING VOLATILITY VIX: 13.75 - UP 1.35 FROM LAST SHOW VVIX: 95.75 - UP 6.75 FROM LAST SHOW RVX: 16.75 - UNCHD FROM LAST WEEK VIX/RVX SPREAD: 3 - MUCH TIGHTER THAN LAST WEEK FUTURES OPTIONS FEEDBACK (FULL EPISODE) QUESTION FROM LIKEME: How do I create the movers and shakers report that starts the show each week. Also - can I get some burgers? COMMENT FROM INGENUOUS: I love the network and twifo is my favorite show. I tune in every week. No one else talks small cap vol let alone crude and metals vol. It’s a must-listen! QUESTION FROM NICO: Why does eurodollar trade so many options? QUESTION FROM HOYLER: How far out can I trade russell 2000 options? How is liquidity beyond one year? QUESTION FROM ADAM SAM: Hello, I have been using futures options recently to stay in trades longer. My main trade is to sell the opposite of the direction that I think the future is going. So if I think it is going up I sell puts. I used to sell calls further otm as a hedge. This decreases my profit significantly when I am right. Would it be better to buy further otm puts as a hedge with same expiration date or go further in the future for hedging? Thank You for your input. QUESTION FROM DLISTER: Since atm implied volatility is structurally higher in russell 2000 does that mean I’m getting better returns for covered calls in small caps than in spy? QUESTION FROM MICHAEL SHEEN: How about some gp/usd with all the brexit nonsense going on? 5 STAR REVIEW By Rocket Labs: Great show, dynamic and educational! Greatly enjoy listening to your guys show, I am just getting into trading futures and am finding your show educational as well as entertaining! Keep up the great work :) COMMENT FROM KEANU3: I greatly appreciate your information on the dairy markets. We need more info on these marketplaces. Please continue. QUESTION FROM JACTAN: What’s more volatile these days- WTI or nat gas? QUESTION FROM GLIO: What about a product complex report where you break down the most active options in each complex. So an Ags compex report then a Metals complex report and so on. QUESTION FROM BELOW: Can you provide any information on upcoming russell volatility products?

Nov 8, 2019 • 1h 1min
TWIFO 176: Taking a Deep Dive into Nat Gas, Crude, Equities and more
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? WTI POTENTIAL TRADE WAR END GIVES LIFT TO CRUDE THE RETURN OF GLOBAL DEMAND DRIVING UP PRICES CRUDE PRODUCTION SHIFTING TO SHORTER TERM? NAT GAS Ready For NatGas' Biggest Bull Market This Year? The biggest bull market of the year in natural gas is shaping up, with huge stakes riding on an intense freeze forecast in the eastern two-thirds of the United States — the country’s most-closely watched heating market. EQUITIES TRADE WAR OPTIMISM LIFTING MARKETS, CRUSHING VOLATILITY VIX 12.4 - DOWN 1 VVIX: 89 - UP 1 FROM LAST SHOW RVX: 16.70 - DOWN .7 FROM LAST WEEK VIX/RVX SPREAD - 4.3 - EVEN WIDER THAN LAST WEEK FX EURODOLLAR OPTIONS FUTURES OPTIONS FEEDBACK QUESTION FROM LLJ: What are the tickers for the russell 2000 buywrite indices? QUESTION FROM YTI97: Are the puts in rut options more bid than the similar term puts in s&p?

Nov 1, 2019 • 1h 3min
TWIFO 175: A Gang of Volatile Products
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?