Oil: Are Options Skews Reliable Price Indicators?

Off the Charts! by CME Group

May 21, 201910:13Business

Investors in the oil market seem to be more concerned over a market slump than a rally, as reflected in out-of-the-money options skews. Were they right?

Related Episodes

Continue listening to more episodes from Off the Charts!.

Copper's Supply-Side Story

Jun 15, 2021 - 05:30

Copper output has been stagnating or declining since 2015, with the pandemic causing mine closures in top...

Treasury Options Skews

May 30, 2019 - 08:37

Do options skews in Treasuries provide any guidance on market trend? We look into whether extreme downsid...

Oil: Are Options Signaling Long-Term Uncertainty?

Feb 5, 2019 - 12:06

Oil prices have bounced off their recent lows but the implied volatility in options is indicating uncerta...

Brexit: Classic Case of an Approaching Major Event Risk

Oct 1, 2018 - 08:04

Outcome of talks for UK's exit from the European Union under Brexit presents a classic case of event risk...

Trade War Fallout Reverberates Through Markets, Economy

Jul 12, 2018 - 07:58

Large-cap U.S. stocks are much more vulnerable to the fallout from the trade war between the U.S. and Chi...

Oil: As Price Tops $70, Will Shale Producers Ramp Up Output?

May 7, 2018 - 13:44

As crude oil prices top $70 per barrel amid escalating Mideast geopolitical risk premium, will shale prod...

Fed's Challenges as its Steers Away From Emergency Policies

May 3, 2018 - 06:01

The Fed faces several key challenges as it charts a new monetary course in the aftermath of the emergency...

Li Keqiang Index: China's Alternative Growth Barometer

Apr 9, 2018 - 18:39

An index named for China's prime minister seems to provide better insight into its growth than official G...