Striking Insights: WTI Crude Oil Options (LO) Volume Trends

  • 30 Mar 2021
  • By CME Group
  • Topics: Energy

Trending product: WTI Crude Oil Options (LO) Volume Trends

  • LO ADV is 122k QTD, which is up 22% from Q4 2020 as sustained OPEC production cuts and positive vaccine rollouts have led to an increase in options activity.
  • LO ADV during non-US hours was 19% of total LO ADV in February, up from 18% in January.
  • LO ADV executed as spreads is 63% of total ADV in 2021 YTD, up from 55% in 2020.

Directed Request for Quote (DRFQ)

DRFQ utilization is increasing as traders look for improved and streamlined efficiencies to safekeep compliance audit-trails. DRFQ optimizes block trading in privately negotiated, exchange-eligible futures, options, and strategies.

  • Utilize CME Direct to connect and privately negotiate block trades.
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Learn more about DRFQ


QuikStrike Spotlight: This Week in Options

This tool provides information about each expiration’s ATM strike, underlying futures price, ATM and 25 Delta risk reversal volatilities, open interest, and volume – including most active strikes and put/call ratios.


Trending Product: Crude Oil Weekly Options

This product scope demonstrates the application and flexibility of Weekly options on WTI Crude Oil futures. Weekly options offer a low-cost tool to mitigate risk associated with physical or financial positions.

How are traders using WTI Weeklies in their hedging strategies?

PRODUCT

EXPIRATION

CME DIRECT

BLOOMBERG

REUTERS

Crude Oil Weekly options Wk 1

01 Apr 2021 – Thu

LO1

CLWA Comdty

0#CLW+

Crude Oil Weekly options Wk 2

09 Apr 2021 - Fri

LO2

Crude Oil Weekly Options Wk3

16 Apr 2021 – Fri

LO3

Crude Oil Weekly Options Wk4

23 Apr 2021 – Fri

LO4

Crude Oil Weekly Options Wk5

30 Apr 2021 - Fri

LO5

Pro tip: bookmark the options expiration calendar for future use

What trading strategies do traders use for LO?

Our article Hedging with WTI Crude Oil Weekly Options provides a range of use cases and strategies for weekly WTI options for storage, upstream, and downstream risk management.

Additional questions?

Contact us at energyoptions@cmegroup.com


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