Someone Bought a ‘Relatively Cheap Lottery Ticket’ That Will Pay Off If Oil Hits $100
- December 2018 call single most-traded Brent option on Tuesday
- Investor optimism returning to oil markets after OPEC deal
Is the Oil Market Wrong to Rely on Increased Demand?
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Call it a pre-Christmas lottery ticket, but someone in the oil market has been busy making a bold bet, buying contracts that will be profitable if oil surges again to $100 a barrel.
The $100 December 2018 call option -- a contract that gives the right to buy Dec. 2018 futures at $100 per barrel -- was the most traded contract on Tuesday across the whole ICE Brent market, the latest sign of resurgent optimism in oil.