Jump to navigation

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
Follow Futures          
       
more >>

We Asked Traders

We asked traders for their opinion on the launch of bitcoin futures

Sponsored Content

Trading

Equities.com launches unlimited trading via Tradier Brokerage, Transforming into a news & fintech portal

Featured Topics

more Commodities>>

Commodities

Energy demand steps back in play
Advertisement
more Volatility>>

Volatility

Volatility & opportunity in the energy sector
more Financials>>

Financials

Daily Price Action: E-mini S&P 500
more Options>>

Options

Trading Vertical Option Spreads

Oil options lure banks on lowest volatility in 17 years

“It’s a very good time to buy options.”

By Grant Smith

January 30, 2013 • Reprints

One Direction

“The market is moving in one direction with a lack of price variance,” said Schork. “But what happens when the buying stops? If momentum stalls, due to a lack of buying interest, then given that the market is already leaning in one direction, you risk a stampede as bulls look to exit their positions.”

Crude is unlikely to plunge as the nuclear dispute with Iran, attacks in Algeria and conflict in Syria support prices, said Torbjorn Tornqvist, chief executive officer and founder of Gunvor Group Ltd, an energy trading company.

The “geopolitical situation and particularly in the Middle East, Iran, Iraq, Syria, North Africa, is extremely worrisome,” Tornqvist said in an interview in Davos on Jan. 24. “All these factors will create volatility. Given the situation I don’t see a significantly lower oil price. The Iranian situation is the key.”

Iran will meet with officials from the International Atomic Energy Agency in Tehran on Feb. 13 to discuss access to its nuclear facilities, which western governments said are engaged in building an atomic weapon. The Islamic republic denies the charge, saying its nuclear program is for civilian use and that international sanctions on its oil exports are unfair.

Upside Risk

“The risks for oil prices are to the upside,” said Eugen Weinberg, head of commodities research at Commerzbank in Frankfurt. “There may be value in options on Brent crude climbing toward $130 a barrel in case of conflict escalation in the Middle East.”

Algeria’s In Amenas gas-processing plant was attacked by militants linked to al-Qaeda on Jan. 16 in a four-day stand-off that left at least 38 workers dead. Several European governments urged their citizens to leave the Libyan city of Benghazi on Jan. 24, citing a threat to westerners.

“Major risks have been priced out but the market has overshot,” Archbridge’s Kocayusufpasaoglu said of the drop in implied volatility.

Bloomberg News

<<< previous
Page 2 of 2

About the Author

Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Related Articles
CFTC charges New York resident with commodity pool fraud
Stocks drop as 10-year yield hits 3%
Will Kim’s denuclearization dethronize gold?
EUR/USD: Nascent signs of a potential top, will the ECB blink?
Elliott Wave Analysis: NZD/JPY & AUD/JPY
Previous
ISE increases focus on exchange-traded funds
Next
Dan Gramza: Fundamentals dampen market expectations
Related Terms
oil 6597bank 6455Bloomberg 5254Oil 4709energy 3807Standard & Poor 2008oil prices 1774New York Mercantile Exchange 1061Goldman Sachs Group Inc. 864New York 841U.S. Federal Reserve 491Pennsylvania 471options 445oil demand 436energy sector 393banks 275BNP Paribas SA 224oil exports 212Exxon Mobil Corp. 181Organization of Petroleum Exporting Countries 162Commerzbank AG 161oil futures 128al-Qaeda 121volatility 112International Atomic Energy Agency 77Total SA 65Eugen Weinberg 47energy trading 38Abdullah 27Stephen Schork 25Harry Tchilinguirian 21Schork Group Inc. 20lower oil price 17Jeff Currie 8Torbjorn Tornqvist 5Archbridge Capital AG 4Hakan Kocayusufpasaoglu 4oil volatility 2Gunvor Group Ltd 1lowest oil volatility 1gas-processing plant 1Diezani Alison-Madueke 1Fahd Death 1

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
images