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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 maintaining skew over calls as bearish sentiment pushes crude lower
- WTI Dec22 implied volatilities show 25 delta put options approximately 5% over 25 delta calls. The skew has been around this level since the second week of July during which time Dec22 Brent has fallen from a peak of near 100$/bbl to 93$/bbl and front month has fallen from 108$/bbl to 96$/bbl.
- Puts remain at a premium to calls across the forward expiries with Dec23 vols showing the skew as high as 10% for Dec23.
- ATM implied vols for WTI are bouncing between 45 and 49% which is above levels of between 30 and 40% for much of last year. Low liquidity and ongoing uncertainty over both supply and demand are keeping vols elevated although well down from the spike of 99% seen in March.
Source: MNI / BloombergWhy 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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