Implied vol for WTI crude options settled down to 46.1 on Friday, a more normal number whatever that means… Average volume for June was only 97,333 contracts, slightly better than May at 87,784 but lower than April, 156,586 and March, 204,834… When I first got into commodities, coffee was the market that the comment “whenever I get a view on trading coffee, I lie down until the feeling goes away” was about… Is it now about crude? Did we lose traders or is the market in a more balanced place? Both? Here is the long term chart based on the BS model:
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