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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 call-put spreads have pulled back to reverse much of the bullish move seen in early August. Upside pressure from the supply risks due to a potential escalation in the Middle East has eased slightly to add to ongoing global demand concerns. There has been no impact of actual flows from the region amid ongoing Gaza ceasefire talks and with no retaliatory strike by Iran so far.
- A rise in put volatilities has taken the WTI second month 25 delta call-put spread back into negative territory at -1.0% today after reaching the most bullish since April at +3.5% on Aug 12.
- The second month Brent is today back to +0.7% today from a recent high of nearly 3.9%.
- The Brent Dec24 call-put skew has also pulled back to -0.8% from a high of just over +1.4%on Aug 12 while the WTI Dec24 spread is back down to -1.64%.
- Crude implied volatility is holding steady after pulling back following a surge higher in July. WTI second month implied volatility is today around 27.8% and Brent at 26%.
- Daily Brent crude option traded volumes reduced during last week but remained above normal at 265k on Aug 16 with call volumes still greater than puts.
- Brent OCT 24 down 1.1% at 78.82$/bbl
- WTI SEP 24 down 1.2% at 75.74$/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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