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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 call options continue to show a premium over the puts amid concern for an escalation in Middle East tensions although the skew has eased slightly since reaching a peak on Friday. The easing skews reflects the slightly softer tone from the futures market which is holding small losses on the day so far.
- The Brent second month 25 delta call-put skew reached the highest since April 2022 at +8.1% but is now back at +3.85%. The Dec23 WTI skew is today at +2.9% and down from a high of +6.65% from last week.
- The Dec24 25 delta call-put skews have widened again today after seeing a general narrowing trend since mid September. The Brent Dec24 spread closed in to the narrowest since Dec 2022 at -5.4% on 20 Oct but is back at -6.15% today. The Dec24 WTI skew is at -6.25% compared to -5.75% on Friday.
- Brent crude second month ATM implied volatility is today down slightly at 39.3% and WTI at 39.8%.
- Brent DEC 23 down -0.7% at 91.47$/bbl
- WTI DEC 23 down -1% at 87.21$/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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