Open interest in WTI put options remains most concentrated around the $30 level for futures months in 2016 (there had been some talk about large size $20p buying)… The most open interest is on the Dec16 30 put, with 55,012 contracts (each contract is for 1,000 barrels of oil), in second place, March16 30p, 36,617; Dec 30p, 26,996… The lowest struck put traded so far is the July $12 put and the Dec16 low is the $14 put, but only two contracts, each, are open (a visionary?)… Some interest rates have gone negative in Europe, could WTI go negative? How could that happen? Storage filled to the tip top in Cushing, a large long only fund tries to get out (needs to sell), throw in a pipeline problem???… (Hmmm… Can someone make me a market for $0 puts in Dec16?) Since there is not even a $10 put trading yet, let’s put the market’s probability of such an event as very close to zero (but positive?)…
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