Oil Option trading in the current markets is a risk. Even though the volatility has fallen, one piece of news tends to panic the market. It may be an embargo , a change in the geopolitical landscape or a local government degree. Image what the markets would have been like in the post world war 2 era. Colonies were becoming Independent. The first thing they would do is nationalize the Oil Industry. Overnight companies such as Shell in Indonesia had to work out new arrangements. Venezuela nationalized and crated its own Oil Companies and the list goes on.
Oil Options Volatility Falls as Oil Gains on Iran Plans
“The most active options in electronic trading today were December $117 calls, which fell 2 cents to 62 cents a barrel at 3:37 p.m. with 3438 lots trading. August $82 puts were the second-most active options, with 2801 lots changing hands as they …”
Despite this , the savvy trade can make good trades in this market. Read the above article to get an idea of today, and think ahead a little.