Big Options Trades Will Pay Off at Lower Oil Prices

摘要

A couple of large players have been active in the options market recently -- one seeking to protect itself against the risk of a sharp drop in oil prices in 2016 and the other hoping to profit from the same scenario. In one transaction, a large North American producer -- rumored to be Mexico -- has bought put options on Nymex crude oil futures which give it the right to sell at a price of $55 per barrel in 2016. The move will only become profitable if prices drop below that level.