Free Trial
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.
OIL OPTIONS
No clear directional signal from the options market with puts trading at a slight premium to calls throughout most of 2022.
- Jul22 Brent expiry takes place tomorrow
- Implied ATM volatility in Brent continues to fall with Aug22 now down to 45.4%.
- The Aug skew is showing 25 delta puts just 0.9% higher than 25 delta calls. The spread has come back towards parity after demand concerns pushed puts to a 3% premium earlier this month.
- EU delays in reaching a Russian oil embargo agreement and the gradual nature of the proposed ban have reduced the short term significant upside risks and call premiums seen back in March and April. If an EU agreement is reached, then this could increase upside risks later in the year. Dec22 calls and puts are currently trading near parity with economic growth concerns offsetting additional supply risks.
- The volatility to cover tail risks on both the upside and downside in Brent have increased over the last week. The 5 delta calls and puts have both ticked higher by 1-1.5% relative to closer to the money options.
Source: Bloomberg
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok