The Black Gold: Crude Oil

This post will be structured in a time series order. I will showcase how I trade the fundamentals of this commodity and also the volatility for this commodity.

To hedge my exposure to oil, I sell upside call spread and buy downside put spread, and I continously rolled over my options position weekly

Sept 5th, 2023-Sept 20, 2023

Saudi just announced a daily one million barrels cut on supply. Entered CL Oct contracts betting on the rise of curde oil prices. Entered 91.5 put expiring Oct 2nd. Positions were fully exited upon expiration date of the futures options.

ET jumped on news of supply cut. I sold 14/18 call spread on ET expiring in 2024, and partilally exited the positions on Oct 2nd.

Oct 2nd, 2023-Oct 6th, 2023

Oil reached 95 and came down sharply, triggering huge demand for downside put protections as it failed to meet traders’ 100$ expectations. I jumped in a long skew positions briefly and fully exited the positions on Friday.