We can garner a lot of market information from a snapshot of the CME’s excellent analytical tool, Most Active Strikes… For example, in the pic below, WTI options are ranked by changes in open interest… Note that total volume (from yesterday’s action) was heavy with over 200,000 trading… Also, open interest increased in puts but not in calls… Changes in implied vol show puts increasing in volatility more than calls, on a sharply higher price move… Can we infer that as a whole, the option paper (or flow) is counter to the price move? That is, call selling, put buying into a rally… Without knowing the motivation behind each trade probably not… But it does look like some option traders are selling into the rally…
Leave a Reply