Exchange news, options. Along with the recent considerable increase in oil price, CALL options have also increased in value a lot.
Investors, seeing macroeconomic improvements, were inclined to buy oil, as demand for energy grows with the growth of production. Speculators have also had their hand in this, for yesterday’s growth from 75$ per barrel to 103$ can hardly be called an objective increase in demand.
With the growth of oil price CALL options get higher demand. This has considerably increased the predicted volatility of these options. On November 16 an important point of 100$ per barrel was passed; this has increased the predicted volatility even more.
However, the price failed to set at this point, and on November 17 it went down below 100$ per barrel. This has cooled the demand for WTI oil CALL options.
The chart of CALL option with a 100-dollar strike:
According to Department of Derivatives Trading, many investors have taken the opportunity to earn and were selling CALL options at a very high price, as there are no particular reasons for the rise to continue.
