22.06.2015 - Oil market buzzes in the wake of big options trades
The oil market is buzzing with intrigue over two derivatives deals last week that bore the signature of a large producer guarding against a price collapse. A public database showed purchases of put options that pay out if crude falls below $53 a barrel in 2016. “Everybody was talking about it,” said Sean Ryan, co-head of oil options at ICAP, the broker. Put options, common in commodity markets, give their owners the right to sell something at a given price by a future date. These two deals raised eyebrows because they were consistent with past transactions associated with Mexico’s programme for hedging its oil exports, the largest of its kind in commodity markets...............................................Full Article: Source
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