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Bullish Oil Options Wager on Rally Beyond $110 in Coming Months
A flurry of oil options contracts that would profit from higher prices in coming months changed hands, a sign that some traders are wagering on the continued risks of wider escalation to tensions in the Middle East. About 30 million barrels worth of Brent crude oil call option spreads for May and June have traded in recent days, according to brokers and exchange data. A buyer of the strategy, which is a so-called $110/$130 call spread, would profit if prices reach or exceed $110. That would be a massive jump from the current level hovering around $77. May options contracts expire in late March, while June contracts ... (full story)