Options update… – Commodity Research Group

March 7, 2020 by Jim Colburn Leave a Comment

As one would expect, options volume was heavy yesterday with over 450,000 trading, and about 100,000 more puts than calls… Implied vol exploded upward with April settling at 64.3 +11, and May at 58.8, +10… A failed OPEC meeting will do this… Here is an updated vol chart:

And here is the CME’s Most Active Strike tool showing open interest growing more in calls (despite the volume difference)… I’m guessing there are some bottom pickers out there speculating that the virus effect on demand is temporary expecting to see higher prices by the end of the year… There are a lot of varied views, strategies and reasons for trading 450,000 options, so I always proceed with caution when interpreting this stuff…

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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