Crude Vol a tickin' up

J

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?
 
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.
 
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.
 
Quote from achilles28:

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.
More...

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: "
 
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