Nat gas volatility update… – Commodity Research Group

October 7, 2021 by Jim Colburn Leave a Comment

Scott DiSavino, Reuters, points out that natural gas implied vol is at record levels, here…

” Volatility in U.S. natural gas futures jumped to a record on Tuesday on the back of an energy crunch in major world markets that has sent prices soaring globally.”

So, I went back and updated my long term chart of implied vol and found the top three spikes: In December, 2000, vol reached 140.3 (the first time in the futures era that gas reached $10); October 5th 2021, 129.3 (and it may not be done yet); November, 2018, 118.9 (an options investor with a very large short option position blew up)…

(132.9

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.

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