59 minutes | Oct 28, 2014

Futures Options Roundtable 15: Oil, Gold and Corn Skew Palooza

Futures Options Roundtable 15: Oil, Gold and Corn Skew Palooza The Grand Marketplace: What happened this month in futures options? Energy: Crude oil is taking it on the chine. No shortage of conspiracy theories for why crude is dropping. Crude option skew is increasingly steep. Brent/WTI spread and NADEX Binaries rundown. Metals: Gold and silver skews had been extremely put heavy, but now they are back to a more traditional smile shape. Ags: What’s happening in ags? Cocoa up on Ebola fears - Prices of futures could spike even higher if Ebola crosses the border into the Ivory Coast and Ghana - the main exporters of cocoa in the region. Corn: futures for December delivery climbed 2.2 percent to $3.56 a bushel, the biggest gain since Oct. 14. Soybean futures for November delivery rose 2.1 percent to close at $9.6425 a bushel, the largest advance for a most-active contract since Oct. 13. Wheat futures for December delivery rose 1.1 percent to $5.1925 a bushel, reaching $5.2375, the highest since Sept. 10.   The Scrolls: Listener questions and comments Question from Alexander King - Question for the esteemed FOR panel. What is the consensus on crude here? More protracted downside? Fight back to the upside? Worth paying for these crazy puts in WTI? Question from Vostro - I am an active GLD trader. Should I consider trading gold futures options instead of GLD options?
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