Crude oil options liquidity


Is crude oil options contract really liquid enough? I saw that OI has crossed 1 million barrels but I see I could only see few 100 open interest in my trading terminal. Any reasons?



The ATM contracts are reasonably liquid, however, as the contract turns ITM or OTM, liquidity dries. However, you can enter or exit the contract at a small impact cost.

Each lot of Crude Oil is 100 Barrels. That would mean an OI of 10k to reach 1 million milestone.
If you combine the outstanding OI of all strikes for all months for Crude, it would be more than 10k.

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