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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
The last month has seen an increase in volatility skew and open interest in put positions
- ATM volatility in WTI has increased from below 50% late last week to over 56%, after significant futures price swings in recent days.
- The skew to puts has also increased with Dec22 Brent 25 delta puts now nearly 6% over calls. The skew was only 2% last week.
- Since this time last month, the open interest in Brent puts options has increased while interest in calls has fallen. The volume and price of puts have both increased as the market focus has switched to recession fears leading to lower demand growth over the ongoing supply issues.
- The chart below shows the change in significant Brent options in the last month, since 7th June, across the main contract expiries:
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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