JonnyBoi
03-09


$United States Oil Fund LP(USO)$  

$Energy Select Sector SPDR Fund(XLE)$  

A bit wary of such parabolic move on prices, which typically precedes an eventual plunge. 

A bit FOMO though, so I am considering trading some short term long call options to hopefully ride the upside as the conflict continues on.

A better trade might involve a put ratio spread, where we sell a 25 delta short put and use thepremium to finance two 10 delta long puts, a convexity play banking on the eventual crash in oil prices if the conflict reaches some form of resolution.

I already have some long call contracts on XLE in my Saxo account, also considering to TP on those positions.

DYODD. 🙏

Modified in.03-09
Would Oil Hit $150 Before Going South?
The conflict between the U.S.-Israeli alliance and Iran has entered a "scorched-earth" phase for energy infrastructure. Following reports of drone strikes on key processing plants in the Northern Gulf, U.S. Natural Gas futures surged 6% to $3.26/MMBTU, while Brent and WTI crude rose again.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Carmenz
    03-09
    Carmenz
    It seems like XLE hard to go up again
Leave a comment
1
94