Some investors in the United States began to bet that oil prices will rise to $100 a barrel on the horizon to four years, says Bloomberg, citing data from the new York Mercantile exchange (NYMEX). Over the last month on the stock exchange were registered by the occasional purchase of call options on WTI crude oil with the execution until the end of 2018, 2019 and 2020 at prices ranging from $80 to $110 per barrel. The holders of these contracts will be able to profit if oil prices rise above the respective exercise prices of the options.
A call option entitles the holder to buy the underlying asset (in this case — crude oil futures WTI) at the agreed contract price (the strike) within a specified period. If at the time of exercise of the option, the market price of an asset will be above the strike price, the investor can profit on the difference.
As follows from NYMEX data, as of June 9, the number of open positions in call options which can be exercised until December 2018 at a price of $100 per barrel, is 4057 (equivalent to 4 million Barr.). More open positions — 10 thousand — in options with a strike of $125. Among the options performance to December 2020 has open positions — 302 that will be a plus, if the price of oil be above $91 per barrel, and 128 positions that will benefit when the price of oil above $100.
Bloomberg notes that in early June, one of the investors purchased options equivalent to more than 4 million barrels. with strike prices of $110 and $80 a barrel in 2019 and 2020, but the data exchange does not identify the buyer. Such transactions, which can be compared with a lottery ticket are typically found in hedge funds.
The profit from these rates you can get, and not expecting the return of oil prices to three-digit values. The cost of the options will increase as growth in oil prices, so they can be profitable to resell.
World oil prices rose from January’s lows doubled and now range around $50 per barrel. As of 17:00 GMT July futures on WTI traded at $49,8 per barrel, while August contract Brent — $51.