Free Trial

Brent Put Options Hold Steady Premium Over Calls

OIL OPTIONS

The Brent implied volatility skew remains relatively stable as the market weighs tight supply against economic recession fears. The Jan23 call-put skew is currently at -2.2% and has hovered between a skew of -0.5% and -3% in favour of the puts since early September.

  • Concerns for economic growth are keeping puts at a premium across the curve with Dec23 call-put skew currently around -8.5%.
  • ATM implied volatility is still at a historically strong level at 47.6% with high uncertainty over both supply and demand.

Source: Bloomberg

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.