WTI options market “ho-hums” the OPEC/non-OPEC meeting…

December 9, 2016 by Jim Colburn Leave a Comment

Here is a chart of the oil vix, a measure of volatility derived from options trading weighted to indicate expected volatility over the next 30 days:

Note that the current measure (from around 11am, today) is only around 34 which is more than 20 vol points lower than the recent high made during November’s OPEC meeting… The oil market is clearly less nervous now, going into the OPEC/non-OPEC meeting… There are still around 110,000 contracts open in January 60 calls and almost 40,000 contracts open in January 55 calls… These go off on December 15th…

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.

Reader Interactions

Leave a Reply Cancel reply