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Oil at $120 Becomes Biggest Energy Bet as Futures Leave Forecasters Behind

Bloomberg

By Margot Habiby – Jul 25, 2011

The biggest bet in the oil market has become a 20 percent increase to $120 by the end of the year as global growth drives demand for raw materials.

The number of contracts held by traders in options to buy West Texas Intermediate crude at $120 a barrel in December totaled 45,502 lots on the New York Mercantile Exchange as of July 21,  4,226 lots more than the next-highest wager, which is for $125. Open interest in the two contracts  jumped 29 percent in the past four weeks, according to data compiled by Bloomberg.

 

Read More: Oil at $120 Becomes Biggest Energy Bet as Futures Leave Forecasters Behind

 


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TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR MONEY. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS UNLIMITED RISK OF LOSS IN SELLING OPTIONS. AN INVESTOR MUST READ AND UNDERSTAND THE COMMODITY TRADING ADVISOR'S CURRENT DISCLOSURE DOCUMENT BEFORE INVESTING.