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
The crude options maintain volatilities skewed to the puts as the market looks for downside cover due to economic recession concerns. New Chinese covid related restrictions may also limit the oil demand recovery following the fall in apparent oil demand this year.
- The Dec22 contracts in WTI and Brent are showing 25 delta puts at around a 4% premium to 25 delta calls. The skew has maintained relatively unchanged since Aug 23 despite significant changes in the futures market. The skew remains in favour of the downside across the forward curve with the Brent Dec23 skew still as high as 10%.
- ATM implied volatility has ticked higher this week up to 49% from 41% mid last week.
- Open Brent crude option interest shows volumes covering both large potential downside and upside moves. Significant open interest across contracts out to Dec24 sits on the downside between 55$/bbl and 80$/bbl and on the upside between 120$/bbl and 150$/bbl.
- Brent NOV 22 down -2.4% at 93.31$/bbl
- WTI OCT 22 down -2.4% at 87.43$/bbl
Source: MNI / 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