Jan 19 (Reuters) – Futures exchange operator CME Group said on Thursday that open interest in its copper options hit a record high of 137,574 contracts on January 18.
Options contracts give buyers the choice to make a future transaction on an underlying security based on a previously agreed price, allowing investors to make bets without always paying for the entire security.
Open interest indicates the number of option contracts that have yet to be settled between buyers and sellers, a measure of investor participation in a market.
“As market participants navigate the ongoing risk of recession and China’s easing of COVID-19 restrictions, they are increasingly turning to our copper options products to manage potential price movements,” said Jin Chang, global head of metals at the Chicago Mercantile Exchange Group, in a statement .
The average daily volume (ADV) of copper options month-to-date was 12,513 contracts, up 410% YoY, while the month-to-date ADV in copper futures and options complex was 131,466 contracts, a 42% increase compared to the full value corresponds to -year 2022 ADV.
Additionally, Global Aluminum Futures currently saw the month-to-date ADV at 3,096 contracts, up 85% from the full-year 2022 ADV.
The group reported third-quarter earnings in October that beat expectations as volatility in global markets amid high inflation, aggressive rate hikes and recession fears boosted trading volumes. (Reporting by Seher Dareen and Bharat Govind Gautam in Bengaluru; Editing by Bill Berkrot)
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