Our Latest Resources

HO Options May Ease ULSD Buyer Fears Over Winter Price Spikes

…OPIS on Thursday asked Elaine Levin, president of Powerhouse brokerage, to look at some HO options.

While the HO term has its legacy in heating oil, it applies to the ULSD specification for New York delivery and is an imperfect but appropriate “insurance” for marketers and end-users worried about a winter price spike.

Levin said she is seeing some interest in $5/gal options. An outright $5/gal call, each of which represents the right, though not the obligation, to take delivery of 42,000 gal of ULSD, carried a cost of 17.5/cts/gal on Thursday morning, or roughly $7,350.

read more

Platts – NYMEX Henry Hub tests out lower ranges as winter supply concerns ease

Elaine is quoted in an article by Kelsey Hallahan from Platts Market Center.  Read the full artile here

… Elaine Levine, president of Washington-based brokerage PowerHouse, had a similar take, saying “I think that the interconnectedness of the world is showing up in the prices – we’ve got a great liquid benchmark.”

“Traders need a place to express their fear and greed,” Levine continued. “So if [traders] are concerned about supply in Europe – at least in my opinion, it will show up here. Where else can you put that concern in the market but into the liquid benchmark?” …

read more

Fuel Options Continue to Move Sharply Higher – OPIS

A Sept. 30 story in OPIS mentioned an upwelling of interest in options, and
specifically in “calls” as a consequence of natural gas prices on other
continents that fetched the equivalent of $150-$200/bbl oil. Offshore natural
gas in Europe and China has continued to flirt with new all-time highs, and a
check of some options’ strategies shows some tidy price appreciation.

Example: Ahead of that story, Powerhouse president Elaine Levin acknowledged an
acceleration of ULSD options or “calls” to guard against budget-busting winter

read more

Options Action in ULSD Grows – OPIS

September 30, 2021 – Elaine is quoted in an article by Tom Kloza of OPIS.

‘Powerhouse president Elaine Levin told OPIS that interest in ULSD options or
“calls” has been accelerating for weeks. But the fears have increased with
clients now worried about a repeat of the 2007-2008 environment where futures
across the energy complex became untethered.’

read more

S&P Global

“David Thompson, executive vice president at brokerage firm PowerHouse, added to the technical perspective.

‘Measurements of overbought had gotten to extreme levels,’ Thompson said. ‘There are moments where you get too exuberant in the market, and then you get a selloff.'”

read more