Options skew is bearish… Bloomberg… – Commodity Research Group

November 24, 2018 by Jim Colburn Leave a Comment

Alex Longley, Bloomberg, has a nice chart showing the degree to which out of the money put options are in demand relative to out of the money calls… This is not surprising given the price move… It would be nice to see more historical data… I recall talking to a market maker who said the skew moved out to 12… This was in 1988, also when OPEC was in a bit of disarray…. The article is here… I don’t think this is news, but more another way of saying crude just moved down a lot… What would be news and more interesting would be to see a sharp move down in crude and a decline in the skew or a decline in vol…

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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