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Oil suffered its biggest one-day slump in three years. Trading desks attributed the move to options-related hedging flows known as negative gamma rather than OPEC or Trump comments.
Price moves driven by options positioning rather than physical fundamentals add volatility to energy markets, which can transmit to biofuel and feed-input costs.
bloomberg.comAlex LongleyNov 15, 2018Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Options-related negative gamma hedging flows amplified the one-day slump, a plausible technical contributor to the outsized z-score move, though the date is later and the attribution is debated.
