Oil options cheapest in 3 years as OPEC meeting approaches - BBG

According to data compiled by Bloomberg, the implied volatility of options (betting on price swings in oil) on second-month West Texas Intermediate (WTI) futures sank to 20.94% Friday, the lowest level since October 2014.

Key Points:

“Volatility has been sinking as futures move steadily higher, with prices reaching $59/bbl for the first time in more than two years.

This week’s cheap options may prove a good deal if the OPEC/non-OPEC meeting next week brings any surprises that send prices gyrating.”