March Crude Oil is up 45 cents at $80.48 per barrel this morning as I write. The included chart shows that March Crude Oil continues to stay well supported and is testing the light blue down trend line coming down from the October/November consolidation pattern. The directional movement indicators are bullish and the ADX line is still edging lower to sideways. With no other news to go on, I would suspect that the near term support for crude oil is because of the citizen protests going on in Iran as some think that a revolution is near for that country. Reality versus what we hope for may be two different things. So far, not one barrel of crude oil has been affected by the riots in Iran. I recommend holding our current positions and not doing anything new today ahead of the holiday.
Followers of this letter should have the following positions:
Long one March Crude Oil ($69.00 strike) put option from $2.90
Short 2 March Crude Oil ($64.00 strike) put options from $1.65 each.
Long one March Crude Oil ($62.00 strike) put option from $1.51.
Short 2 March Crude Oil ($57.00 strike) put options from 83 cents each.
March Crude Oil options expire in 48 days.
The information and opinions contained herein comes from sources believed to be reliable, but are not guaranteed as to accuracy or completeness. The risk of loss in trading futures and/or options can be substantial. Each investor must consider whether this is a suitable investment. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results.
This newsletter is not intended for dissemination to the public without prior approval from David Hall.