The Gulf War created a mega mini bull run in crude oil futures, surging nearly 160% within a period of no more then 3 months
I was thinking with the recent russia Ukraine tensions, once it becomes fully clear an invasion is occurring, not just occupation of forces but fighting that is shown on all major outlets, crude oil futures could enter a tear in the next 3 months and surge 150-200% in a brief span
This could also prove a lucrative bet for option traders.
Main play= 4-6 month call option 15-25% out of the money, 50% for aggressive traders, hedged with a ITM or at market value put option with also the same expiration ( if the tensions prove to be a bluff , expect oil to retrace to the mid 60s low 70s , which would be a good buy opportunity )
In summary, I believe in this inflationary environment and specifically the war scenario, this makes a interesting play, and during the gulf war we saw a rapid surge in oil prices in a short time, which would benefit option traders as unlike other plays their is a much higher roi possible due to the huge volatility within a short time frame.
I was thinking with the recent russia Ukraine tensions, once it becomes fully clear an invasion is occurring, not just occupation of forces but fighting that is shown on all major outlets, crude oil futures could enter a tear in the next 3 months and surge 150-200% in a brief span
This could also prove a lucrative bet for option traders.
Main play= 4-6 month call option 15-25% out of the money, 50% for aggressive traders, hedged with a ITM or at market value put option with also the same expiration ( if the tensions prove to be a bluff , expect oil to retrace to the mid 60s low 70s , which would be a good buy opportunity )
In summary, I believe in this inflationary environment and specifically the war scenario, this makes a interesting play, and during the gulf war we saw a rapid surge in oil prices in a short time, which would benefit option traders as unlike other plays their is a much higher roi possible due to the huge volatility within a short time frame.