oil volatility or the implied volatility of USO is nearing an extreme.the futures are still in a decent contango.
so what does that mean? the cost of options both on the upside and downside is dirt cheap, but the cost of carry spread is nearing a reversion.
in contango CL futures outperform vs USO or a future equivalent etp due to cost to carry/decay. however when...
Volatility is rising and we have confirmed higher lows in the 16.00/17.00 range with spikes higher.
It seems we are transitioning into a higher volatility environment, despite currently being in
no man's land.