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EU Carbon Permit Options Trade at 50 Euros, CarbonDesk Says
2010-09-02 08:23:31.700 GMT
By Catherine Airlie
Sept. 2 (Bloomberg) -- Options to buy European Union carbon
permits for 2012 traded in London yesterday at a strike price of
as much as 50 euros a metric ton, according to CarbonDesk Ltd.
Some 1,000 lots of call options, which give the right to
buy permits at a given price, traded at 50 euros ($64), 2,000
lots at 40 euros and 1,000 lots at 30 euros, London-based
CarbonDesk said today in a research note.
Investors may have used a butterfly strategy, the research
note said. A butterfly spread combines three options with the
same expiration date and different strike prices, with half of
the contracts bought or sold at the middle strike price and the
rest divided among the top and bottom. The butterfly takes its
name from the strategy's payout diagram, which resemble the
insect's outstretched wings.
For Related News and Information:
Emission market news NI ENVMARKET <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
--Editors: Mike Anderson, Randall Hackley.
To contact the reporters on this story:
Catherine Airlie in London at +44-20-7073-3308 or
cairlie@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
