With oil prices trading close to their highest level in 2 yrs, some traders are betting which the price rise could have more area to run.
A total of forty eight, 000 contracts have traded during the last few days that would profit most when Brent spikes before Christmas, which includes several large individual trades. They will include 14, 000 options offering traders the right to buy February Brent at $71 a barrel, in addition to 22, 000 for $85 plus 12, 000 for $80. All of them expire on Dec. 21.
Oil costs have rallied in recent several weeks as OPEC supply cuts assist to rebalance an oil market affected by oversupply. More recently, growing tensions between Saudi Arabia, OPEC’ s largest oil producer, and a few of its neighbors helped prices crack above $60 a barrel the first time since 2015.
Against that backdrop, the particular crude options market has usually been looking brighter. The alleged place skew , the difference in demand pertaining to bullish call options versus bearish put options, has also fallen within recent days. That gauge shut at its least bearish degree since late-August on Thursday, bolstering oil’ s rosy outlook.