Wti put option


This post is the third in a series where we are exploring how oil and gas producers can hedge their exposure to crude oil, natural gas and NGL prices. But if we put this up against the significant net-long postion currently being held by hedge funds in the futures market the option market is more a reflection of hedging actiCrude Oil options are option contracts in which the underlying asset is a crude oil futures contract.The holder of a crude oil option possesses the right (but not the obligation) to assume a long position (in the case of a call wti put option or a short position (in the case of a put option) in the underlying crude oil futures at the strike price.This right will cease to exist wti put option the option expire after market close on expiration date.

Crude Oil Option ExchangesCrude Oil option contracts are available for trading at New York Mercantile Exchange (NYMEX).NYMEX Light Sweet Crude Oil option prices are quoted in dollars and cents per barrel and their underlying futures are traded in lots of 1000 barrels (42000 gallons) of crude oil.NYMEX Brent Crude Oil options are traded in contract sizes of 1000 barrels (42000 gallons) and their prices are quoted in dollars and cents per barrel. Example: Long Crude Oil Put OptionYou observed that the near-month NYMEX Light Sweet Crude Oil futures contract is trading at the price of USD 40.30 per barrel.

Since each underlying NYMEX Light Sweet Crude Oil futures contract represents 1,000 barrels of crude oil, the premium you need to pay to own the put option is USD 2,90.Assuming that by option expiration day, the price of the underlying crude oil futures has fallen by 15% and is now trading at USD 34.25 per barrel. At this price, your put option is now in the money. With WTI now firmly reconnected to global energy markets, open interest continues to grow as customers hedge their oil market risk.

Choose the option that.




Put option wti

Wti put option