Crude Oil Options: Understanding Volatility and Time Value
Volatility and time are just as important to understanding option premium as intrinsic value. This is especially true for a hedger who uses out of...
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Optimizing Oil & Gas Producer Hedge Portfolios with Call Options
In our last post, Can Activity in Crude Oil Options Provide Insight into Crude Oil Price Trends, we explored the definition of delta, as well as it’s...
Can Activity in Crude Oil Options Provide Insight into Crude Oil Price Trends?
In a recent Bloomberg article, “In a Risky World, Oil Traders Bet on $100 a Barrel” the author explored how, “Some oil traders have started to gear...
Will Your Oil Hedging Strategies Sustain Another 2008-Like Crisis?
Will oil prices going to continue to decline or is yesterday's correction the end of the recent sell-off? Are we in the early stages of a 2008-like...
An Introduction To Crack Spread (Refiner) Hedging
Over the course of the past year, refining profit margins have been all over the map. As an example, over the course of the past year, the WTI-NY...
Common Oil & Gas Hedging Errors & How to Avoid Them
As energy risk management advisors, we're often called in to help clients "stop the bleeding" caused by flawed energy risk management methodologies,...
Top Energy Hedging Failures in the Current Market Environment
As energy hedging advisors, we often see many market participants, make significant, if not catastrophic, errors related to their hedging strategies....
Oil & Gas Hedging: What Can be Learned From the Past?
While not nearly as unnerving as the decline from $13 in the summer of 2008 to under $3 in 2009, the recent volatility, amid a low price environment,...
Government Oil & Gas Hedging Update
Over the course of the past few months we've met with numerous government ogranizations and state owned companies, both producers and consumers,...