WTI spread option volume is soaring… – Commodity Research Group

April 4, 2016 by Jim Colburn Leave a Comment

Volume in options on one month WTI spreads (symbols WA and 7A) soared in March to 22,459 contracts per day, up 57% from March of last year… Year to date volume is 26,634, up 60% from last year… Traders have been positioning themselves for expected backwardation (sometime in 2017) or deepening contango (front months)… The following chart shows the recent two way price movement of the front month spread in March:

The chart is from bar chart.com..

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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