Trader Touts The "RBOB Gasoline Crack"

When the price of gasoline is going up but oil is falling, it’s time to trade the "RBOB Gasoline Crack," according to Eric Bolling, of CNBC’s "Fast Money."

So what is the Crack? “It’s the value of gas over the value of crude oil, and it’s really the refiners’ gross margin,” said Bolling on CNBC’s “Morning Call.” He explained, “They take a barrel of oil, they run it through a refinery, and it comes out gasoline and heating oil.”

Following Tuesday’s $2 drop in the price of crude, the gasoline crack is getting wider and wider, says Bolling.

With the U.S. driving season about to take hold, Bolling thinks that now is the time for gasoline to rally, making an attractive margin for the Gasoline Crack. “Really, this time of year gas drives the market … It’s been on fire, it’s been up, up, up,” he said.

Bolling told CNBC's Liz Claman that if there is a break in the price of gasoline Wednesday, investors should use it to buy gas against their crude contracts.

Along with the RBOB Gasoline Crack margin, “refiners are doing phenomenally,” said Bolling. “They’re making a lot of money for every barrel they run through the refinery and the retailers,” he added.