Oil Options Lure Banks on Calmest WTI Since ’95: Energy Markets
This article is for subscribers only.
The lowest oil volatility in 17 years is pushing down options costs, setting up trades that BNP Paribas SA and Commerzbank AG say will profit when Mideast supply disruptions send prices swinging again.
BNP in Paris recommends buying contracts that pay should crude advance and financing them by selling bearish puts. New York-based Goldman Sachs Group Inc. said the drop in oil volatility is “too much too soon.” Commerzbank sees value in bets on Brent climbing toward $130 a barrel.