Copper’s Options Paradox
- Copper options implied volatility is trading near record lows
- While copper prices track China’s growth, options follow US monetary policy
- Continued tight US monetary policy could elevate copper implied volatility
- If Fed decides to cut rates, it could keep a lid on Copper options prices
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Oil: Three Signs of Prices Hitting Bottom
- Oil prices are down by about 20% from the April peak, have they hit bottom?
- Soybean Oil and Crude Oil options skews are often leading indicators of oil prices
- Both are pointing to prices for oil and oil products stabilizing after the decline
- Rising US oil output, slowing global growth are not favorable for oil prices
- Escalating tension in the Persian Gulf shipping lane remains an upside risk
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