Striking Insights: Energy options trends and tools

  • 24 Feb 2021
  • By CME Group
  • Topics: Energy

Trending product: Weekly WTI options around the March 4 OPEC meeting

This update provides answers to common questions asked on trading WTI Weekly options around the upcoming March 4 OPEC meeting.

How are traders using WTI Weeklies in their hedging strategies?

Product

Expiration

CME Direct

Bloomberg

Reuters

Crude Oil Weekly options Wk 1

05 Mar 2021 - Fri

LO1H1

CLWA Comdty

0#CLW+

Crude Oil Weekly options Wk 2

12 Mar 2021 - Fri

LO2H1

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.


Trending tool: CME OPEC Watch Tool

Industry leaders continue to lean on the CME OPEC Watch Tool as a method to measure portfolio risk and market volatility from uncertainty around OPEC meetings. This tool uses NYMEX WTI Crude Oil options pricing from weekly and monthly contracts expiring closest to the meeting to provide a calculated probability of outcomes.  

This QuikStrike powered tool features:

  • A calculated probability of outcomes, updated daily, for the next OPEC meeting
  • A history of the tool’s results since April 2016
  • Weekly WTI options open interest

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.
  • Access a single electronic platform for the entire negotiation lifecycle, from inception to block submission.
  •  Save exportable audit trails for recordkeeping requirements.

Learn more about DRFQ


Subscription spotlight: Chart of the Week

Every two weeks, CME Group publishes exclusive insight from oil market analysts at PVM. Each chart looks at a lesser-known aspect of the global oil markets, coupled with a sharp, succinct explanation.

Our current Chart of the Week reviews OPEC+ output ahead of its next meeting.

Sign up to access the report

Contact the team

Contact us for any questions on trading Energy options at CME Group.

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