Sun, Apr 20, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Categorized | Fund Profile, Oil, Trading more

Oil traders hunger for lost years of volatility

Posted on 24 October 2013

Many hedge funds do not care how high prices are. They only want oil to move. Using complex options trades such as “straddles”, which gain value when markets go up or down, they “buy” volatility. A straddle involves buying both a bullish call option and a bearish put option at the same strike price – say, $110 a barrel.
Clive Capital has thrown in the towel. Deep into its third year of losses, what was once one of the world’s largest commodity hedge funds shut down late last month. The closure is symptomatic of a broader trend – or more accurately, the lack of one. Hedge funds once feasted on wild action in oil. Now, volatility has fallen to historic lows. Plodding prices have forced traders to experiment with new ways to make money. ……………………………………….Full Article: Source


 Article link

This post was written by:

VRS - who has written 34624 posts on Opalesque Commodities Briefing.


Contact the author

Comments are closed.

banner
banner
April 2014
S M T W T F S
« Mar    
 12345
6789101112
13141516171819
20212223242526
27282930