Oil options still active post OPEC/non-OPEC…

WTI oil options trading volume yesterday was 405,214, not quite the record of over 500,000 during the OPEC meeting but still a hefty number… More calls traded, 224,107 than puts, 181,107…  January options go off on December 15th… Open interest in January call options is massive with the 53, 54, 56 and 57 calls all over 10,000, the 55 at around 37,000 and the monster 60 call at 110,000!  Most of these positions were initiated by option buyers anticipating a much stronger move than we see so far…  Concerns of OPEC and non OPEC compliance are probably keeping the market from getting ahead of itself, but if I am bullish and already bought calls at 53 to 60, I might just wait until my call position goes off the board before buying again…  The market has perhaps over anticipated the rally… The other side of this, of course, is that market makers are mostly on the short side of these calls… Should we trade up close to the 60 call, we could see a “gamma rush” as traders who had given up their short call options for dead, now need to come in and cover by buying back the call or buying futures… So far, the Jan 60 call is asleep, but not yet comatose…