Here are some ways small investors can profit from the volatility in crude oil prices without having to store a few barrels of oil in the backyard (Not an exclusive list) :
If you think oil prices are going up (Which I do) :
1) Buy stocks of companies that engage in oil exploration and drilling such as Exxon Mobil (e.g. XOM, BP, SNP, PBR, STO)
2) Buy Exchange Traded Funds that are directly proportional to oil prices (e.g. USO, OIL, DBO, UCR)
3) Short sell (Borrow to sell) the stocks of those in the airline, transport or courier industry (e.g. UPS, FDX, UAUA)
If you think oil prices are going down :
1) Invest in alternative energy, such as the Guinness Atkinson Alternative Energy Fund or First Solar (FSLR)
2) Buy the UltraShort Oil & Gas ProShares
If you think oil prices are either going up or down by a huge magnitude:
Buy a straddle (A put and a call option at the same price) for a oil ETF
