Freight derivatives for capesize bulk carriers have seen an almighty sell-off over the past week, but now options holders are quickly finding themselves exposed to losses.
It is a situation that would have been unthinkable just over a month ago.
The kryptonite in the capesize forward freight agreement (FFA) market is the relatively large volumes of call options that have been struck in the last couple of weeks at prices between $27,000...
