Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Crude Oil Options Advance With Futures on Budget Optimism

Crude oil options volatility rose with the underlying futures on optimism lawmakers will reach a last-minute budget deal that would protect all but top earners from a tax increase that threatens economic growth.

Implied volatility for at-the-money options expiring in February, a measure of expected price swings in futures and a gauge of options price, was 26.18 percent at 2:05 p.m. on the New York Mercantile Exchange, up from 25.46 on Dec. 28.

Crude oil for February delivery rose 68 cents, or 0.8 percent, to $91.48 a barrel on Nymex, reversing an earlier loss of as much as 0.9 percent. Futures gained as Democrats and Republicans discussed how to avert more than $600 billion of tax increases and spending cuts.

“It appears” a fiscal cliff agreement is “within sight,” President Barack Obama said today at a White House event with middle-class Americans. The U.S. can tackle the deficit “in stages,” he later added.

If no deal is struck, the changes would cause a recession in the first half of 2013, according to the Congressional Budget Office.

The most active options in electronic trading today were February $80 puts, which declined 4 cents to 11 cents a barrel at 2:07 p.m. on volume of 982 contracts. The second-most active, with 852 lots exchanged, were February $100 calls, up 1 cent at 15 cents a barrel.

Bullish Bets

Bets that prices would rise, or calls, accounted for 54 percent of electronic trading volume.

The exchange distributes real-time data for electronic trading and releases information the next business day on open-outcry volume, where the bulk of options activity occurs. deteriorating.

In the previous session, bets that prices would fall, or puts, accounted for 62 percent of volume.

February $85 puts were the most active options Dec. 28, with 4,586 contracts trading as they were unchanged at 53 cents a barrel. December 2014 $75 puts fell 4 cents to $5.60 a barrel on 2,000 lots.

Open interest was highest for February $105 calls with 37,001 contracts. Next were March $70 puts at 29,641 lots and February $100 calls with 26,746.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.