Today, we continue with our spotlight on a product instead of a market recap due to vacation schedules. CME Group offers many products within its Energy products suite and we’ll showcase a couple here that are popular with active individual traders, specifically WTI Crude Oil and Henry Hub Natural Gas futures and options.
WTI Crude Oil
WTI Crude Oil futures (West Texas Intermediate) is a light, sweet crude oil that is stored and distributed in Cushing, Oklahoma and has long been a global benchmark for the price of crude oil. CME Group offers two different futures products on WTI Crude Oil:
Henry Hub Natural Gas
CME Group maintains a very liquid Natural Gas futures and options market and is the third largest physical commodity futures contract in the world by volume. Some traders find Natural Gas an interesting product to trade due to the seasonality associated with the price action and because it tends to be among the more volatile products at CME Group. As with CL, Natural Gas futures are physically deliverable so it is important (as with all futures contracts, actually) to know what the expiration date is. Also similar to CL, Natural Gas options are offered with both monthly and weekly expiries.
If you’d like to learn more, we’d encourage all of our users to check out the following resources for both standard and E-mini WTI Crude Oil:
Finally, we used QuikStrike to graph the 30-day implied volatility of products from several different CME Group asset classes. We intentionally used the same scale for all products to illustrate the fact that these Energy products (dotted lines in the graph) tend to trade a higher relative levels of implied volatility.