This Week in Futures Options

We're going back into the TWIFO archives to bring you a best of episode. This one was a fan favorite: How to Trade Commodity Volatility.

This week in the CME hot-seat we have special guest Dan Passarelli, Market Taker Mentoring. Topics this week include: WTI What's the word on the street for futures traders? Aggressive return to old skew? Fed week came and went Treasuries Eurodollars Futures Options Feedback/Weekend Flash Poll: These are crazy times for all markets from commodities to equities and volatility. Which crazy level will we hit first? VIX Below 9 SPX Above 2500 WTI Below 40 AAPL Above $160 Listener questions: What do you want to know? Question from Paul - Mark, What is your take on the timing of an investment in silver right now? I just got out of the market and I am thinking of investing in silver - either the traditional options or an ETF that tracks physical bullion like SLV or SIVR. I am leaning towards SIVR for its lower expense ratio. Question from Lawrence T. - You guys (I think it was Nick) talked about rent a while back. You should make that into a regular segment or report. Maybe who is paying the rent report? Question from Charles Allenby - Can I not just do most of this stuff in my stock portfolio using USO, GLD and other ETFs? Do I really need to open a futures account?

Topics this week include: WTI Gold Soybeans Futures Options Feedback Listener questions and comments Question from LlillyPod - What is up with Soybeans? Good collar territory again? Comment from Tommi - I think WTI weeklies struggle because producers are focused on the longer portion of the curve. Question from Neil Avere - Can you rundown Quikskew again. Still not really sure how to read it. Comment from Stallon - Why so much concern about low crude volatility? We are just in a new volatility regime for crude right now. Just because crude Vol is low does not meant that selling it is not a winning trade. Seeing the same thing in broad equity volatility right now.  

Topics this week include: WTI Gold Futures Options Feedback: Listener questions and comments Question from Silvan - Does Quikstrike actually quantify the rent? So you could collect X rent in product Y if you sold it, etc. Also how do I read that quickskew graph? Not sure I'm looking at it correctly. Question from Meravol - Interesting piece in Modern Trader about selling breakeven strangles. Have you seen? What are your thoughts of this technique? Is it me or are there new techniques for selling strangles all the time that always tend to blow out? Are you not better off selling IC or IB due to limited risk? Comment from Tom S. - The barrel of oil question was cute. Maybe worth a show about the actual delivery process?

Originally posted on January 23, 2017, this "Best Of" This Week in Futures Options features Blu Putnam Chief Economist of CME Group. Topics in this episode include: The election, inauguration WTI/Brent spread QuikStrike Future Options Feedback: Listener questions and comments Question from Jeff Myers: What is the prediction for platinum options? Question from Eddy: Is the trade in crude more cautious right now, or are the bulls all in? Is it an all-in trade? Question from Sean: When it come to currency options, is there a market, like Euro, that trades more smoothly?  

Topics this week include: WTI/Crude Oil Gold Skew Futures Options Feedback: Listener questions and comments Question from Andrew L. - On the note of your oil sulfur question here is another weird one that's been bugging me. If I buy a contract for a barrel of oil and take delivery do I actually get the barrel? Question from SillyPuddy - I am a newly minted FO approved trader but yet to make my first trade. What product and strategy is your go to for noobs. Question from NoizeFun - Can we get a silver recap on the show this week? Plz?

In the CME hot seat for this episode, we have Tim McCourt, Global Head of Equity Products, CME Group. Topics this week include: QuikSkew Index Options Crude Oil/WTI Futures Options Feedback: Listener questions and comments Question from A Joban - When are we gonna have weeky options expiring on every day of the trading week? So affectively I am asking when are we gonna have daily options? Question from StockAce - Does the CME Futures Institute offer options education as well? If not, can you recommend any good outlets that do futures options education? Question from AM85 - How can you guys tell, when you are looking at the reports, if a trade is opening or not? Thanks and love the show - wish it was daily.

This week we have special guest Andrew Giovinazzi. The gang discusses: S&P/E-Mini Skew Skew WTI Futures Options Feedback: Listener questions and comments Question from ALV13 - What the heck makes crude sweet? Slightly off topic but its always bothered me. Question from Henry VII - How closely related are the fundamentals of ES and ES Mini options vs. SPY and SPX? Are the volatility, skews, OIs and the rest always very similar or do they sometimes trade as their own products? Question from Burton - Man these FO symbols are killing me. Z for Dec, etc. Why don’t they just start from A and go alphabetically through the months? I can never remember these things. Any tips for a new convert?

Topics this week include: Showing signs of life in WTI/Crude Oil Follow along at cmegroup.com/twifo Gold Low vol/high gamma What's paying the rent? Futures Options Feedback: Listener questions and comments Question/Comment from John Pagnola - Looks like you were right about a selloff lifting OIV in the short term. But that's obviously coming off now. Now that we are in this new paradigm what do you think it will take to budge the needle again? Question from Haymaker - Maybe Fluid Milk as a surprise product for next show? Question from Amy - What is the shortest expiry available for plain vanilla options?

Topics this week include: What would it take for a crude selloff? Oil/WTI: Updates, strikes, open interest, paying the rent Gold: December 1400 calls? Want more: check out cmegroup.com/twifo