This Week in Futures Options

TWIFO 196: THE WILDEST WEEK IN CRUDE OIL HISTORY  HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL CME HOT SEAT GUEST: RUSSELL RHOADS, EQ DERIVATIVES ON TODAY'S EPISODE, MARK, SEAN AND RUSSELL DISCUSS: CRUDE A HISTORIC, AND DANGEROUS, WEEK FOR CRUDE USO IS IN TURMOIL CRUDE CAN ACTUALLY GO NEGATIVE CME STARTED LISTING NEGATIVE STRIKES FOR CL OPTIONS BEGINNING 4/22 INTERACTIVE BROKERS TAKES $88M HIT FROM CRUDE FUTURES COLLAPSE EQUITIES THIS IS A GOOD TIME FOR SMALL CAPS.  THE RUSSELL 2000 HAS A LOWER WEIGHTING IN ENERGY THAN LARGE CAP INDICES LIKE S&P 500. CONSIDER THIS IF YOU ARE LOOKING TO DIVERSIFY AWAY FROM CRUDE OIL FOR A BIT. FUTURES OPTIONS FEEDBACK QUESTION FROM JLNE: HOW THE HECK CAN CL GO NEGATIVE? QUESTION FROM NEAL: DO YOU THINK WE WILL SEE NEGATIVE PRICES FOR THE FORESEEABLE FUTURE? COMMENT FROM 45T$: SO WE’RE LIVING IN A WORLD WHERE THERE ARE ACTUAL NEGATIVE STRIKES FOR CRUDE OPTIONS. JESUS! WHO EVER THOUGHT THAT WE’D GET HERE? QUESTION FROM PIERCE: IS THIS REALLY A CRUDE BLACK SWAN? PEOPLE THEORETICALLY THOUGHT THAT CRUDE COULD GO NEGATIVE. ISN’T A BLACK SWAN SUPPOSED TO BE COMPLETELY UNFORESEEABLE? QUESTION FROM JANPECK: WHAT IS HAPPENING TO USO? QUESTION FROM TMAL: WHAT DO YOU THINK OF USO AT THESE LEVELS? QUESTION FROM MM87: DID THE USO ROLL CAUSE THIS? QUESTION FROM DAMANATEE: IS USO JUST ANOTHER XIV? QUESTION FROM BANTAM: WHAT THE HECK IS USO NOW? QUESTION FROM SG90D: THOUGHTS ON THE 8-1 REVERSE SPLIT IN USO?  QUESTION FROM SAMUELPBOWIE: JUST STARTED TUNING IN...WHEN DO YOU SEE HIGH DEBT US SHALE PRODUCERS START DEFAULTING ON LOANS? QUESTION FROM JLC: WHY IS RUT SO VOLATILE COMMENT FROM MBOTT: IT ROLLED BECAUSE THE INDEX METHODOLOGY IS, OR AT LEAST WAS, TO SELL NEAR TERM CONTRACTS TO BUY NEXT TERM CONTRACTS.  THEY DID NOT FACTOR IN THE POSSIBILITY OF THESES EXTREME SPREADS BETWEEN THOSE CONTRACTS WHICH LED TO MASSIVE NEGATIVE ROLL YIELD.  THEY WILL PROBABLY NOW CHANGE THE METHODOLOGY TO GO FURTHER OUT THE CURVE, BUT IT’S TOO LATE IMO

TWIFO 195: Historic Crude Supply Cuts Vs. Demand Devastation HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL ON TODAY'S EPISODE, MARK AND SEAN DISCUSS: CME MOVERS AND SHAKERS FOR THE WEEK MARCH CME GROUP OPTIONS REVIEW ACROSS ASSET CLASSES EQUITIES CRUDE OIL FUTURES OPTIONS FEEDBACK COMMENT FROM OPTION SELLING MENTOR: @OPTIONS AND @CMEGROUP GREAT PROGRAM! COMMENT FROM TTO: I WISH GRAINS WERE DOING MORE SO YOU COULD DISCUSS THEM ON TWIFO.  QUESTION FROM OPTIONIMUS: WITH ALL OF THE MARKET VOLATILITY THIS YEAR, WILL THE ANNUAL RECONSTITUTION BY FTSE RUSSELL STILL MOVE FORWARD IN JUNE? IF SO, DO YOU ANTICIPATE MORE CHANGES THAN USUAL IN THIS YEAR'S REVAMP? QUESTION FROM GENJI3: WHY DO YOU DO TWIFO 30 MINUTES AFTER THE OPTION BLOCK PROGRAM? WHY NOT BACK TO BACK? THX AND LOVE ALL THAT YOU DO. 5 STARS!  QUESTION FROM MULVY: IS CME FLOOR GONE IN THE NEXT YEAR? QUESTION FROM BIG TODD: WHY IS DAIRY ALWAYS IN THE TOP 5 THESE DAYS? WHAT'S CAUSING THIS VOLATILITY? QUESTION FROM TURKINSTOCK: I AM AN OPTIMIST LIKE SEAN. HOPING THIS CORONAVIRUS STOPS CAUSING DAMAGE TO OUR ECONOMY. SHOULD I BET ON A SUSTAINED REBOUND IN RUSSELL 2000 BY THE END OF THE YEAR?

TWIFO 194: Trade Futures Or Be Stuck In The Past HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP GUEST CO-HOST: ANDREW GIOVINAZZI, OPTION PIT GUEST CO-HOST:  MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT ON TODAY'S EPISODE, MARK, ANDREW AND MIKE DISCUSS: CME MOVERS AND SHAKERS FOR THE WEEK EQUITIES CRUDE OIL METALS: GOLD AND SILVER FUTURES OPTIONS FEEDBACK QUESTION FROM COCL: WHEN YOU SEE THAT THE CALL SKEW IN A STOCK IS BID OVER THE PUTS IS THAT A SIGN THAT YOU SHOULD IMMEDIATELY SELL THAT SKEW?

TWIFO 193: Has the Crude Worm Turned HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: SEAN SMITH, FTSE RUSSELL ON THIS EPISODE, MARK AND SEAN DISCUSS: CME MOVERS AND SHAKERS FOR THE WEEK CME GROUP’S MARKET STATS FOR MARCH 2020 EQUITIES CRUDE OIL FUTURES OPTIONS FEEDBACK QUESTION FROM STIPOD: HAVE YOU HEARD ABOUT ANY MORE MARKET MAKERS BLOWING UP OUT THERE RIGHT NOW? QUESTION FROM ERIC: WHAT WAS IT THAT FORCED CME TO LIQUIDATE RONIN CAPITAL LAST WEEK? JUST A RISK ISSUE? COMMENT FROM MARKBRANT15: ANYBODY NOT BUYING IS FINE WITH ME! KID IN A CANDY STORE SCENARIO. NO JOY IN A PANDEMIC HOWEVER. QUESTION FROM TACK3: HOW DOES VOL IN RUT COMP TO SPY RIGHT NOW? MORE? LESS? QUESTION FROM ZANE: I SEE PEOPLE INCLUDING BLOOMBERG WARNING ABOUT USO EVEN THOUGH IT’S CHEAP. WHY? QUESTION FROM MARYC: WHY DON’T YOU GUYS SPEND MORE TIME ON SOME OF THE SMALLER NAMES ON YOUR LIST THAT TEND TO HAVE THE MOST EXTREME MOVES EACH WEEK? COMMENT FROM THORNTON: DEFINITELY NO #HOGLOVE THIS WEEK! QUESTION FROM DARCY: CAN YOU DISCUSS WHAT CME IS DOING TO FIX IT FX OPTIONS?

TWIFO 192: Fading the Apocalypse HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CME HOT SEAT GUEST: SCOTT BAUER, PROSPER TRADING ON TODAY'S EPISODE, MARK AND SCOTT DISCUSS: CME MOVERS AND SHAKERS FOR THE WEEK THE PANDEMIC’S IMPACT ON FUTURES OPTIONS TRADING CRUDE OIL EQUITIES GOLD FUTURES OPTIONS FEEDBACK QUESTION FROM BRANDON:IS THIS VOL COLLAPSE FOR REAL? QUESTION FROM TOLLAND: CAN I GET ACCESS TO THE TWIFO REPORTS OUTSIDE OF THE LIVE SHOW STREAM? THX AND KEEP UP THE GOOD WORK.  QUESTION FROM BUD FOX: HUGE PUT VOLUME ON SPY 3.27 250’S. THOUGHTS? BUYING OR SELLING PUTS? QUESTION FROM LOU: WHY ISN'T RUT LEADING THE CHARGE TO THE DOWNSIDE AGAIN THIS WEEK? WHAT HAPPENED?

TWIFO 191:  THE ENDLESS DRAMA OF THE MARKET HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL CME HOT SEAT GUEST: RUSSELL RHOADS, HEAD OF RESEARCH AND CONSULTING, EQ DERIVATIVES ON TODAY'S EPISODE, MARK, SEAN AND RUSSELL DISCUSS: CME MOVERS AND SHAKERS FOR THE WEEK CRUDE OIL NAT GAS EQUITIES: RUSSELL 1000 METALS: COPPER AND GOLD RATES: EURODOLLAR FUTURES OPTIONS FEEDBACK QUESTION FROM AJB_2010: I WONDER IF GOING FORWARD, THE EXCHANGES WILL USE THIS MOMENT TO REPLACE HUMANS.... QUESTION FROM NATURAL-EASE: DO THEY (MARKET MAKERS) MAKE ANY DIFFERENCE? QUESTION FROM ROB MORRIS: IGNORANT QUESTION, BUT ARE THEY REALLY NEEDED ON THE FLOOR? WHAT IS THE BENEFIT TO THEIR PRESENCE? QUESTION FROM RIC: ANY THOUGHTS ON FX AFTER BREXIT VOTE?

TWIFO 190: When Correlation Goes to One HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL CME HOT SEAT GUEST: JEFF WHITT: CO-FOUNDER,  SIMPLY DERIVATIVE ON TODAY'S EPISODE, MARK, SEAN AND JEFF DISCUSS: CME CLOSING TRADING FLOOR DUE TO CORONAVIRUS FEARS SO MUCH RED ON THE SCREEN THIS WEEK EQUITIES: RUSSELL 2000 LEADING THE CHARGE TO THE DOWNSIDE, BEAT DOW INTO BEAR MARKET TERRITORY BY 2 DAYS ENERGY: WTI/CRUDE OIL - RUSSIA/OPEC PRICE WAR HAS ANNIHILATED CRUDE METALS: WHEN IT ALL HITS THE FAN CORRELATION GOES TO 1. GOLD POTENTIALLY UNDERPERFORMING EXPECTATIONS RATES/FX: EURODOLLAR - THE EURO WEAKENED ON THURSDAY AFTER THE EUROPEAN CENTRAL BANK ANNOUNCED MORE STIMULUS TO FIGHT THE CORONAVIRUS IMPACT BUT DID NOT LOWER INTEREST RATES, WITH THE SINGLE CURRENCY FALLING TO THE DAY’S LOW AS INVESTORS RUSHED FOR DOLLARS. FUTURES OPTIONS FEEDBACK QUESTION FROM SELAMY: WHY ARE THE SMALL CAPS BEING HIT HARDER THAN THE LARGE CAPS IN THE CORONAVIRUS STOCK MARKET SELLOFF? QUESTION FROM COLBY: WITH GOLD DOWN, IS NOW A GOOD TIME TO BUY? WOULD IT BE BETTER TO BUY OPTIONS ON GOLD?

TWIFO 189: Fed Surprises as Volatility Rises HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL ON TODAY'S EPISODE, MARK AND SEAN,  DISCUSS THE IMPACT OF THE SURPRISE FED RATE CUT ON THE MARKETS,  EXPLORE WHAT THE FEDWATCH WAS PREDICTING COMING INTO THIS WEEK,  DO A DEEP DIVE INTO EQUITY VOLATILITY RESEARCH, ANALYZE THE EXPLOSION OF EURODOLLAR OPTIONS VOLUME HITTING THE TAPE, LOOK AT THE CORONAVIRUS IMPACT ON CRUDE, AND MUCH MORE.

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL ON TODAY'S EPISODE, MARK AND SEAN DISCUSS: MOVERS AND SHAKERS FOR THE WEEK. TOPICS FEATURED INCLUDE ENERGY, NAT GAS, WTI, CRUDE OIL, EQUITIES, RBOB, AND RATES. WE LOOK AT MICRO EMINI FUTURES AND THE CME FEDWATCH TOOL. FUTURES OPTIONS FEEDBACK QUESTION FROM JLD: IS SKEW DATA ON CME BTC RELIABLE WHEN THERE’S SUCH LOW VOLUME? QUESTION FROM BILLBEANZ: WHY DO PEOPLE LOVE 3-MONTH FAR OTM PUTS SO MUCH IN RUSSELL? QUESTION FROM JACK SCHWARTZ: HOW IS IT POSSIBLE THAT THE RUSSELL 2000 IS LEADING EQUITIES DOWN ON SUCH MACRO-DRIVEN NEWS? QUESTION FROM ELL87: IT SEEMS LIKE DEMAND WEAKNESS IS HERE TO STAY FOR CRUDE IN THE NEAR TERM. LOOKS LIKE THOSE CALL WING TRADERS WERE ALL CORRECT WHEN THEY FADED EVERY RALLY. CORONAVIRUS WAS THE REAL RISK LURKING IN THE SHADOWS.

TWIFO 187: The Zone of Annoying Volatility HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CME HOT SEAT GUEST:  ANDREW GIOVINAZZI, THE OPTION PIT ON TODAY'S EPISODE, MARK AND ANDREW DISCUSS: MOVERS AND SHAKERS FOR THE WEEK JANUARY OPTIONS NUMBERS FOR CME GROUP & OPTIONS COMPLEX OVERVIEW TOPICS FEATURED INCLUDE NAT GAS, WTI, EQUITIES, SOYBEANS, RBOB, AND CRYPTO FUTURES OPTIONS FEEDBACK QUESTION FROM RACQUEL: WHAT ARE SOME OTHER MARKETS THAT EXHIBIT SIMILAR SKEW TO EQUITY INDICES (E.G.- CHEAP CALLS AND EXPENSIVE PUTS)  QUESTION FROM DALY: UPTICK IN CME CRYPTO THIS WEEK? QUESTION FROM MARCUS T.: I THINK CRUDE DEMAND WILL RECOVER IN THE NEXT 1-2 YEARS. WHAT IS THE BEST WAY TO BE A LONG-TERM OIL BULL? FUTURES? OPTIONS? ETF? SOMETHING ELSE?