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From this article, http://www.zerohedge.com/news/2017-01-22/oil-speculators-have-never-been-long,

"I get what you're saying about the price risk which is always the danger of shorting crude oil it's always a bit of a negative gamma trade."

How is shorting crude oil (futures) a negative gamma trade? Im assuming there is some shadow gamma there somewhere.

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  • $\begingroup$ With oil prices where they are nowadays, they could fall a little bit, or they might jump up quite a bit (say a war in ME, or an OPEC agreement...). So there is a certain asymmetry there when you are short CL. $\endgroup$
    – nbbo2
    Jan 23, 2017 at 19:17
  • $\begingroup$ @noob2 I will accept ^^^ if you make it an answer $\endgroup$
    – Trajan
    May 9, 2018 at 17:55

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