Oil Options Volatility Declines as Futures Increase

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Oil options volatility fell as the underlying futures rose after Federal Reserve and Bank of Japan officials suggested the central banks would continue using monetary policy to bolster economic growth.

Implied volatility for at-the-money options expiring in June, a measure of expected price swings in futures and a gauge of options prices, was 26.96 percent as of 2:56 p.m. on the New York Mercantile Exchange, down from 28.24 percent yesterday.