
Market Conditions7 min
How Inflation Data Moves the Options Market
Every month, the Bureau of Labor Statistics releases the Consumer Price Index (CPI) report — and options markets respond in a predictable two-phase pattern.…
Bernardo Rocha

Every month, the Bureau of Labor Statistics releases the Consumer Price Index (CPI) report — and options markets respond in a predictable two-phase pattern.…

The options market's implied move for a major event is approximated by dividing the at-the-money (ATM) straddle price by the current price of the underlying.…