WTI options comment…

by Jim Colburn • Thursday, July 12, 2018

Yesterday’s option volume was heavy with about 250,000 trading… As one might expect with a sharp price move, the heavy option volume occurred in August with $68 through $72 puts and $73 through $75 calls most active… However, the CME’s excellent “Most Active Strikes” tool shows the Dec 2020 $100 call moving into 14th place among calls for open interest!  In earlier podcasts we talked about how back month call buying was active and that the top open interest call strikes were in Dec 2009 perhaps playing the “strong demand/underinvestment in oil” idea… Add to this the talk of OPEC excess capacity declining and we could see more back month calls trading… Of course, lots of call buying means lots of call selling, too!

 

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