04/01/2025
Strategy Idea...Buy June Crude Oil Puts.
News of potential "secondary" tariffs on Russian oil and other measures threatens to remove substantial barrels of supply from the market. Accordingly, we have seen oil rally from what was previously a stark technical support level in the mid-$60.00s. Perhaps the bulls have received a stick-save by politicians, or maybe this is just another rally that gets sold. We are leaning toward the latter, but selling calls at what are unattractive prices due to low volatility doesn't seem like a good idea. Instead, we like buying cheap puts. Crude oil puts are relatively cheap; we like nibbling on them.