26.03.2015 - Call option trades target return of $100 US crude oil
The prospect of a return to $100-a-barrel crude is tempting some to bet against the bearish consensus in the oil market. One or more traders have resumed buying call options that pay out if benchmark US crude futures surpass $100 by the end of 2018. Call options give holders the right to buy oil at a set price by a certain date. Open interest in these options has risen to the equivalent of 2.7m barrels, nearly trebling from the start of the month. The bullish positions run counter to the downbeat sentiment that pervades the oil market. Despite cutbacks in drilling, the price of West Texas Intermediate crude for December 2018 delivery was $64.25 a barrel on Wednesday. This specific futures contract last traded above $100 a barrel in mid-2011, while spot US crude oil was at that level last July...............................................Full Article: Source
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