Wild Commodities Run Gives Options Their Moment
- Options open interest in WTI up 15% vs this time last year
- Traders are having to manage unprecedented risks, ICE Says
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Commodities traders are increasingly turning to the options market to hedge their risk, as surging volatility reshapes derivatives markets for the world’s raw materials.
Open interest in U.S. West Texas Intermediate crude options is 15% higher compared to this time last year, while for Henry Hub Natural gas options it is up 44% according to data from CME Group Inc. There have been seen similar booms elsewhere, with CME’s rival in the energy space, Intercontinental Exchange Inc., saying its oil options open interest is up 15% since the start of the year.