NYMEX_DL:CLK2024   Crude Oil Futures (May 2024)
There is something insightable happening with WTI oil.
90 strike and trade volume are attracting attention.
Check out Monday's trading data below. But to properly interpret it, we need to look at the data in the context of how the price of the asset has moved.
Comparing when the highest option trading activity was at the 90 strike and how the asset moved, the question becomes why the 90 option strike is being handoffed as prices move higher.
It's critical to note that open interest at the 90 strike did not increase, but the option flow from previous owners to new owners did (the amount of open interest did not increase, it actually decreased slightly).

Someone started buying at the 90 strike about 3 weeks ago and is now taking profits by selling their portfolio into the market, taking advantage of the rising price of call options. Our statistics show that such a scenario indicates a strong resistance level around the 90 strike and a likely bounce.
Evaluate two slides that show activity at the strike 90$ and 95$ in nearest Wti May's option series, expiring in 7 days (including weekends). The first slide shows the traded volume, and the second slide shows a change in the open interest on the specified strikes. It is easy to see that the trading volume on strikes 90 and 95 strikes has not translated into open interest, indicating that contracts have changed hands from previous holders to new ones. Now, focus on the chart, as it is the most important part. This is a crucial moment for understanding the concept of what is happening. Contracts are being transferred from more to less informed participants in a growing market. Will Wti reach the 90 strike level? Yes, probably. Will it break through in this option series with such activity? Hope it's clear now.


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