Crude Options Volatility Slumps as Underlying Futures Rally on Japan Stimulus Program

Bloomberg reported that US crude options volatility slumped as futures rallied to highest in a week on speculation that Japan’s stimulus program has been approved, which in turn, will boost fuel demand in the country.

As quoted in the market news:

Implied volatility for at-the-money options expiring in June, a measure of expected price swings in futures and a gauge of options prices, was 23.48 percent at 3:45 p.m. on the New York Mercantile Exchange, down from 24.77 percent on April 19.

Click here to read the full Bloomberg report.