Cross-Commodity Options - Leon Reilich

With the options market being relatively heavy at present with subdued volumes and elevated implied and realized volatility levels combined with a tough macro environment, higher flat price action on TTF and it being summer as well, it was a great outcome to have traded a 20 MW 120/110 Aug-22 Put Spread hedged on the last trading day of June.

Not only has this shown to the market that ARRACO is well set up to broker options from the operational side of the business but also that putting client service and care first and truly understanding the needs of our counterparties and their price tolerances, can yield results in a tricky market, especially for options given a decrease in risk taking capabilities by many market participants with the unprecedented spikes in vol the last few months.