Vol411 for Wednesday, September 16, 2020

Host: Joe Tigay, Chief Trading Officer, Equity Armor Investments
  • September VIX options and futures settled at 26.12 earlier this morning. October is now the front month in the VIX futures curve and has been leading the volatility curve for some time.
  • The final FOMC meeting happened today with discussion of inflation. If the inflation rate is too hot, the Fed may have to raise rates faster than anticipated.
  • Due to the Fed talking up inflation, the U.S. dollar is trending lower, but the rates are not moving the same way to reflect that. This may be due to the idea that a cheaper dollar makes the treasury less attractive for foreign governments to buy. Therefore, it is losing the bid to make those rates go higher.
  • The market is trying to anticipate vaccine and stimulus news where bets and pricing are being made before any major updates.

To learn more visit Cboe’s website.

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