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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 are maintaining a bullish skew after a switch to a call volatility premium earlier this month reflecting the upside risk sentiment from escalating tensions in the Middle East.
- The second month Brent 25 delta call-put spread is today at +2.65% after reaching the most bullish since April at +3.89% on Aug 12. The WTI second month spread is showing a skew of around +2.2% today ahead of the Sep24 option contract expiry tomorrow.
- The Brent Dec24 call-put skew has turned positive to a high of just over +1.4% this week from -2.4% on Aug 5 while the WTI Dec24 spread is up to near parity.
- Crude implied volatility has pulled back from the highest since January seen earlier this month with WTI today at 27.95% and Brent volatility at 26.2%.
- Brent crude call option traded volumes remain high at almost double the 50 day average at 208k yesterday from a total Brent option volume of 300k. Total WTI option volumes were also above normal at 225k yesterday.
- Brent OCT 24 down 0.2% at 80.56$/bbl
- WTI SEP 24 down 0.3% at 78.15$/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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