short-term crude

Discussion in 'Energy Futures' started by ogarbitrage, Jul 22, 2009.

  1. I'll try to update this daily w/ what I'm seeing on the floor and OTC.

    Charts suggest consolidation - tight range thru July, after that, probably breakdown. Options seem to support this for the short term.

    Paper interests are:

    -selling vol in front 5 months (Z 69.50 straddle traded 250x, U atm straddle traded several times throughout this morning)

    -buying puts and put spreads for size (ppr bought Z 68.50/60 put sprd 5,000x in the pit this morning; Z 30 p was bought 1,000x; U 55/60 put sprd traded 200x, etc.)

    -selling calls (ppr sold U 66 c 2,000x)
     
  2. SetDraw

    SetDraw

    very interesting ogarb. who is ppr?

    one of my friends who does energy trading for a hedge fund is calling for CL to retest lows. seems like a very bold call, but he's been right many times in the past.
     
  3. Looks like that Philip Verleger is gettin' busy!

    http://www.bloomberg.com/apps/news?pid=20601087&sid=auTu3RI8WC1A
     
  4. Lol...
     
  5. @setdraw, "ppr" is just an abbreviation I use for "paper" - meaning retail interests, like producers and hedge funds.

    @day4night, I honestly have no clue about the brt/wti sprds. I really only watch the option markets. And I am not on the floor actually, but I talk to locals and brokerage firms down there who feed me info.
     
  6. Vol still getting offered this morning. Would not be surprised to see an EOD sell off.
     
  7. My selloff call was a little off for the day.

    Not many noteworthy trades today. Only size trade was Z 60/80 fence traded about 1,000x total throughout the day. Not much else to report.
     
  8. sell off rarely happen in the summer.



     
  9. How often do you think directional options trades are on the right side of the market? Weren't a lot of $100 calls coming in when WTI was at $70?
     
    #10     Jul 24, 2009