Spread options are trading… – Commodity Research Group

March 18, 2020 by Jim Colburn Leave a Comment

Spread options on WTI are active due to the collapse of front to back spreads… Here is a look at the June20/Dec20 spread from barchart.com… Divide by 6 months and we see an average spread of close to minus $1 per month… This will highly encourage storage to start filling up!

And here is a snapshot of options on spreads from Tuesday’s trading showing a highly active market around the at the money level of $1:

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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