Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

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.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Crude Volatility Falls as Oil Reaches Lowest Level Since Dec. 24

Don't Miss Out —
Follow us on:

March 1 (Bloomberg) -- Crude options volatility slid as underlying futures fell to the lowest level since Dec. 24 amid concerns that fuel demand will decline.

Implied volatility for at-the-money options expiring in April, a measure of expected price swings in futures and a gauge of options prices, was 20.76 percent at 4:50 p.m. on the New York Mercantile Exchange, down from 20.93 percent yesterday.

West Texas Intermediate crude for April delivery dropped $1.37, or 1.5 percent, to settle at $90.68 a barrel on the Nymex as reports showed manufacturing contracted in China and the euro area. Prices touched $90.04 after trading in an intraday range from $91.57 to $94.92 for the previous six days.

The most-active options in electronic trading today were April $83 puts, which rose 7 cents to 14 cents a barrel on volume of 5,771 contracts at 4:52 p.m. in New York. April $95 calls were the second-most active with 3,517 lots. They declined 25 cents to 19 cents a barrel.

Puts accounted for 53 percent of electronic trading volume. In the previous session, bearish bets made up 58 percent of the 116,220 contracts traded.

June $80 puts were the most active options traded yesterday, with 6,071 contracts changing hands. They were down 7 cents to 77 cents a barrel. June $97.50 calls fell 42 cents to $1.77 on 4,545 lots.

Open interest was highest for December $105 calls with 35,244 contracts. Next were April $110 calls at 34,233 and June $90 puts at 32,440.

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.

To contact the reporter on this story: Barbara Powell in Dallas at bpowell4@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

Please upgrade your Browser

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

Chrome, Firefox, Safari, Opera or Internet Explorer.