As we discussed A Beginner's Guide to Crude Oil Options - Part I & Part II, there are four primary factors that determine the price of crude oil, as well as refined product, options: Prevailing price of the underlying future or swap relative to the...
Read MoreThis post is the second in a series on crude oil options. This first post in the series can be found via the following link: A Beginner's Guide to...
We're often asked to explain what determines the price of crude oil (as well as bunker fuel, diesel fuel, gasoil, gasoline and jet fuel) options....
Over the past couple years we have addressed various aspects of both basis risk and costless collars however, until now, we have not addressed the...
As has been the case many times in the past and certainly will be many times in the future, the debate regarding the advantages and disadvantages of...
Are oil prices poised to collapse again, as they did in 2008? We don't claim to know the answer to such a question as doing so would require us to...
Join Mercatus Energy Advisors and Allegro, Tuesday April 23, 2013 at 9:00 AM CT, for a 30 minute live webinar to learn about three strategies for...
Over the course of the past year, the price of prompt month NYMEX natural gas futures have doubled since bottoming just below $2/MMBtu. The reasons...
A few weeks ago, in a post titled How to Reduce Basis Risk by Hedging with Options - Part I, we looked at how a large fuel consumer, such as an...
As of yesterday, NYMEX heating oil futures and options are now ultra low sulfur diesel fuel (ULSD) futures and options. The transition is a long time...