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I trade the December 2020 crude oil options. Today the underlying Dec. 2020 futures contract had a relatively small gain, up $0.27, less than half a percent. The settlement price on the Dec. 2020 100 calls, that had no volume, went from .58 to .56, a loss of 0.02 or 3.45 percent. I did see a bid of a single option at 0.50. At the same time, the settlement price on the Dec. 2020 150 calls, again with no volume and no bids and asks showing, went from 0.08 to 0.11, a gain of 37.5 percent! This seems irrational/suspicious to me, and I'm even wondering if I should report this to the CFTC.
EDIT: I also noticed that the settlement values did not appear until after 4:30 PM Eastern. Usually the settlement values show up by 4:00.
Can you help answer these questions from other members on NexusFi?
Did you see this settlement on your platform? Or you went to the CME website and saw the settlement there?
Matt Z
Optimus Futures
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Based on the above, I suppose that having the settlement higher for the 150s and lower for the 100s can be rationalized by the 300 volume for the 125 calls, which may mean that the market is bidding up the 125 strike and higher strike options while the lack of volume for the 100s may be interpreted as its price remaining relatively stable. However, increasing the settlement for the 130s by an amount greater both in abslolute and percentage terms than the 125s does not make sense.
ok. I saw the 150 option you are referring to and it does have an OI. otherwise, it would not be reported.
Keep this in mind:
"Settlement prices on instruments without open interest or volume are provided for web users only and are not published on Market Data Platform (MDP). These prices are not based on market activity.
Matt Z
Optimus Futures
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Today the settlement price on the Dec 2020 150 calls spiked from .13 to .22 with no volume and no bid and ask at the time of the settlement, and the highest bid I saw for the whole day was .06. There was an insignificant rise on the underlying December 2020 futures. I wouldn't be surprised if a short squeeze develops on those options on Monday when the market opens. Maybe the person who set the settlement to .22 wants to take advantage of a squeeze.
