May/June WTI spread collapses, again… – Commodity Research Group

April 10, 2020 by Jim Colburn Leave a Comment

Here is the chart from Barchart.com… May/June declined by $.98 on Thursday… Lots of spread options are going in the money… Open interest on the -$4 put, 19,500; -$5, 5,400; -$6, 7,500… Another 5,000 contracts are open on the
-$6.50… Congratulations to the original -$4 put buyer, a trade that we highlighted earlier as one of many recent “wtf?” moments in the crazy world of commodities…

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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