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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
The near term crude options call skews have pulled back from the highs seen at the end of last week with no impact on physical oil flows from the Iranian strike on Israel over the weekend. The pull back follows the easing front month futures prices from a high of $92.18/bbl on Friday with the strikes publicized ahead of the weekend and already priced in.
- There remains a significant amount of uncertainty not only with regards to Israel's potential response, but to the impact of any action on the broader situation in Gaza.
- The Brent crude second month 25 delta call-put skew is today down to around +1.5% from a high within day on April 12 of +4.25%. The WTI second month skew is today at about +2.0% from a high of +5.2% on Friday.
- Interest in call options continues to outweigh put interest with a high Brent aggregate traded options volume of 380k on Apil 12, 267k of which was from call trades. The WTI option traded volume was up at 230k while crude aggregate traded futures volumes were also just above normal.
- The crude Dec24 call-put skews have also widened slightly from the narrow skew seen last week with Brent at -2.2% and the WTI Dec24 skew is -3.1%.
- Brent JUN 24 down 0.9% at 89.6$/bbl
- WTI MAY 24 down 0.9% at 84.89$/bbl
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.
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