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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
Puts strengthen as Brent implied volatility back around 50%.
- Brent ATM implied volatility is near 50% having fallen toward 40% earlier in June. Uncertainty over both oil supply and the economic risks to future demand are resulting in large price swings and high intraday volatility.
- The vol skew has gradually trended back to puts over calls since the start of March. Dec22 25 delta calls had spiked to a premium of approximately 5% over 25 delta puts back in March but now puts are trading at a 3.5% premium to calls. The gradual increase in economic risks has driven the move as outright futures have traded lower despite the continuation of global supply disruptions.
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.
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