Commodities Report: WTI & Flow Analysis

$SLV $GLD $USO $COPX

Hello Traders,

WTI continues to weaken, and this move was anticipated by options positioning well in advance. The build-up of USO ITM put delta and negative dealer exposure signaled growing downside risk, meaning that as price started to fall, hedging flows would accelerate the drawdown rather than absorb it. That’s exactly what we’ve seen.