Oil traders are taking advantage of geopolitical uncertainties by making big bets in the options market. Speculators recently snapped up 3 million barrels worth of options contracts, with 3,000 lots of June $250 call options in US crude oil traded for just 1 cent each. Described as akin to a lottery ticket, these trades were reportedly paired with $25 put options.
The surge in bullish oil options can be attributed to the rising tensions between Israel and Iran, pushing prices to record levels. Currently, the Brent crude oil benchmark is trading near $90 per barrel, while WTI is above $85. However, oil prices took a hit on Tuesday following comments by the Federal Reserve Vice Chair and the Biden Administration’s announcement of additional sanctions on Iran.
The market is now eagerly awaiting Israel’s response to Iran’s recent attack to determine the risk premium for crude oil. As the situation continues to unfold, oil traders remain on thin ice, carefully watching every move in the market to maximize their profits. Stay tuned to Celebrity Beauty Buzz for more updates on this developing story.
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