Oct. 10, 2016

Options Backtesting Results

Historical average return: +$238.72 (backtested over 1.8 years)
Historical success probability: 36.0%

Summary

As crude oil breaks out of the $50 level, implied volatility has dropped and call skew has increased, creating an environment for the cheapest upside call spreads since 2015. With favorable options backtesting results, call spreads may be attractive for those expecting the breakout to continue.

Sign up to view the full trade details and options backtesting analysis