Biggest Trading in Copper Options Ever Signals Supply Troubles

Spread trade worth $6.5 million was posted on Comex Monday
Bulk trade was a “pretty aggressive bullish bet:” BMO’s Wong

Copper tubes lay on the floor at the Kamani Tubes Ltd. plant in Wada, Maharashtra, India, on Saturday, Nov. 3, 2012. India's manufacturing growth accelerated in October for the first time in four months, a private survey showed, adding to signs that the worst of Asia's economic slowdown may have passed.Photographer: Brent Lewin/Bloomberg

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By Michael Roschnotti and Justina Vasquez

March 18, 2019 at 3:14 PM EDT

Updated on

March 18, 2019 at 7:00 PM EDT

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The biggest trading volume in copper call options on record signals supply troubles brewing in the market.

A spread trade worth $6.5 million was posted just after 7 a.m. on Comex in New York in a bet that the price of the metal used in wires and pipes will surge past $3.05 in a few months, from Monday’s settlement price of $2.909.

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