Friday, September 16, 2011

crude oil prices Drops september 16 2011

crude oil prices Drops september 16 2011 ; Oil options volatility declined as the underlying futures tumbled in New York on concern that European leaders meeting today haven’t taken sufficient steps to contain the region’s debt crisis.

Implied volatility for at-the-money options expiring in November, a measure of expected price swings in futures and a gauge of options prices, was 37 percent at 1 p.m. in New York, down from 37.4 percent yesterday.

Oil for October delivery fell $1.57, or 1.8 percent, to $87.83 a barrel at 1:11 p.m. on the New York Mercantile Exchange. Futures have fallen 3.9 percent this year. November futures retreated $1.50, or 1.8 percent, to $88.08 a barrel.

The most active contract in electronic trading today was November $75 puts, with 2,789 lots changing hands. The options rose 5 cents to 80 cents a barrel. November $110 calls, the next-most-active options, slipped 2 cents to 11 cents a barrel on volume of 1,386 lots. One contract covers 1,000 barrels of crude.

October options expired at the close of Nymex floor trading yesterday.

The exchange distributes real-time data for electronic trading and releases information on floor trading, where the bulk of options trading occur the next business day.

November $80 puts were the most active non-October options traded in the previous session, with 2,710 lots changing hands. They fell 25 cents to $1.36 a barrel. The next-most active options, December $85 puts, retreated 43 cents to $4.14 a barrel on volume of 2,671.

Open interest was highest for December $100 calls with 51,497 contracts. Next were December $70 puts with 45,627 and December $50 puts with 45,353. source www.bloomberg.com
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