What to Expect From Last CPI Report of 2022

The video discusses market volatility, focusing on CPI days and the impact of upcoming events like the Fed meeting and options expiration. Chris Murphy from Susquehanna Financial Group provides insights into S&P options pricing, market reactions, and expectations for the FMC decision. The discussion also covers market positioning, hedging strategies, and future outlooks, highlighting the consensus on potential market lows in the coming year.

What are the two major events discussed that are expected to influence market volatility?

• Trade agreements and oil prices

• Earnings reports and GDP data

• CPI and Fed events

• Interest rate cuts and inflation

How are S&P options typically priced ahead of macro events?

• They are not affected by macro events

• They match the expected market move

• They are consistently underpriced

• They are usually overpriced

What is the consensus in the market regarding the upcoming FOMC decision?

• A 25 basis point hike

• A 75 basis point hike

• No change in rates

• A 50 basis point hike

What is the expected market reaction if the CPI results align with expectations?

• A significant market drop

• A stabilization of market prices

• Increased market volatility

• A market rally

What trend is observed in the derivatives market for the first half of next year?

• Decline in market interest

• Stable market conditions

• Increase in hedging activities

• Decrease in hedging activities