FOCUS: LME options spike signals cautious optimism on copper

London Metal Exchange copper bulls are turning to the options market to make cautious bets that copper's price will continue its rapid rise into March 2020, Fastmarkets learned.

Open interest in March options has spiked and a total of 9,635 lots of call options - equivalent to over 240,000 tonnes of copper - are currently live with strike prices between $6,400 per tonne and $6,600 per tonne.
Call options give the holder the right to buy in the event of the underlying price hitting an agreed ‘strike’ price level; rising activity in the options markets underlines how the red metal’s recent gains have galvanized investors, but they are not ready to go all in at a flat price yet.

“Three of my customers today, all they traded...


Archie Hunter

January 14, 2020

12:30 GMT