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

- April 22nd, 2013

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.

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.

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