Market Insights

Market StrategyApril 27, 2026Matt Marshall2 min read

Hedging structure recommendations Nov 5, 2021

Hedging structure recommendations Nov 5, 2021

Recent Recommended Trades and Structures

Commodity	Tenor	Recommended Structure	Notes
NYMEX WTI	Bal 2026	Collars	Producer: The ongoing war in the Middle East has severely altered global crude flows and forecasted oil balances for the rest of the year. A lack of progress in peace negotiations point to higher prices for longer. Elevated option volatility and skew favoring call options mean collars are attractive for oil producers.
NYMEX WTI	Cal 2027	Collars or Swaps	Producer: A downward sloping forward curve is hurting producers hedging into years two and three. We recommend clients that are more price-sensitive to utilize swaps to lock in favorable economics. Producers that can tolerate a lower floor can fight backwardation with a collar.
NYMEX Henry Hub	Bal Summer	Swaps or Tight Collars	Producer: Weather throughout the past winter and spring has been a drag on prices. Fundamentals still look positive when you adjust for the weather-related demand. Even at lower prices options markets are still providing producers with asymmetric upside on costless collars.
NYMEX Henry Hub	Nov26-Mar27	Collars	Producer: While this strip is down significantly from recent highs, we remain bullish. LNG demand should continue to move higher as Exxon Golden Pass and Cheniere Corpus Christi continue to add export capacity. We continue to favor upside friendly structures to allow for upside participation.
NYMEX Henry Hub	Apr27-Oct27	Swaps or Tight Collars	Producer: AEGIS holds a bullish view on prices for this tenor, and with call skew elevated even for summer months, producers may find value in costless collars.

Commodity Interest Trading involves risk and, therefore, is not appropriate for all persons; failure to manage commercial risk by engaging in some form of hedging also involves risk. Past performance is not necessarily indicative of future results. There is no guarantee that hedge program objectives will be achieved. Certain information contained in this research may constitute forward-looking terminology, such as “edge,” “advantage,” ‘opportunity,” “believe,” or other variations thereon or comparable terminology. Such statements and opinions are not guarantees of future performance or activities. Neither this trading advisor nor any of its trading principals offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program.

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