Crude Vol a tickin' up

Discussion in 'Energy Futures' started by J-Law, Feb 16, 2012.

  1. J-Law


    WTI Crude IV by measure of the CBOE OVX has been upticking from the beginning of this month from a 2/6 low of 30.11% to almost 35% today.
    Spike is probably coming. Direction? Anyone's guess...

    Although I am inclined to be bullish. WTI calendars have bottomed out & Brent calendars have broken to upside. Spring approaching seasonal in play.

    But, doesn't vol usually sell off into a rally?
  2. Pretty much guaranteed Israel and/or the US strike Iran.

  3. J-Law


    Just watched tonight's world news on DVR. Yes, Israeli/Iranian tensions. Yep, up.
    Wondering how to trade it. Long vol in crude is usually an expensive trade.
  4. Go long CL, futures. Buy long-dated calls...? Sell puts?

    It's an easy trade. Oil will bounce at least 50% to the upside, if and when.
  5. are you rec'ing all three trades at once or giving options (pun intended)? when i read this my first thought was "so he's putting on a a texas hedge - i'm glad to know there's another trader out there like me:cool: "
  6. ahha giving options...