metal outlook

There is some interesting data on the LME exchange with regards to put & call options.

Simple explanation of the below data.

Open interest (kinda like shares on issue for a company converted to a dollar amount as a guide)

(x2204 multiples)
1. Copper $1,729,045
2. Nickel $1,311,621
3. Aluminium $1,243,467
4. Zinc $383,149

This shows me that zinc is the 4th most traded metal from the complex.

The real interesting bit of data though is how traders feel about the future for each component.

Zinc = 66% bullish, 33% bearish
Copper = 39% bullish, 61% bearish
Nickel = 75% bullish, 25% bearish

The data is 4 days old but will be interesting to track changes to this data over time. In particular, if the zinc bullish position continue to improve. This data excludes backorders too which shows zinc to be more bearish and copper to be more bullish. I put them all together next time.