WTI Oil/US Oil retreated from the high of $46.85 to $45.97 on Monday, thus leaving a lower high formation on the daily chart. The front-month contract currently trades around $46.16/barrel.
The options market activity suggests the traders are seeing oil roughly in the range of $43-$50 over the next couple of weeks.
The CME data shows the open interest in the out-of-the-money (OTM) - 43.00 put option rose by 5552 contracts. On the higher side, big additions are seen in the OTM calls - 50.00 call option +3148, 52.00 call option +2762. The total open interest in the call options jumped 11,943 contracts, while the open interest in the put options rose by 18,621 contracts.
The build up at the extremes - deep out-of-the money options as mentioned above - is likely to be call/put writing. Meanwhile, a big jump (+4449 contracts) in the OI in at-the-money (ATM) - 46.00 put option, suggests a bearish bias. Furthermore, the in-the-money (ITM) call options have not seen any notable jump in the open interest. Thus, traders could be betting on consolidation with a downside bias.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.