Please see the previous game plan articles:
August 25, Sept 1, Sept 8, Sept 23, Sept 30, Oct 12, Oct 19
Wow, the oil market is changing fast. It’s only been a week since I wrote my last game plan article, and the bullish price action I noted in oil has translated into reality. Brent hit a new high on Friday at $117.41, and while prices have pulled back over the last 2 days, I don’t see that trend persisting.
In the last game plan article, I issued two (not) trade alerts in the chat (personal portfolio). One trade was to go long BNO Nov 6 $70 strike calls for $1.70. I bought 230 of them and subsequently sold 80 of them last Friday (also alerted to paid subs in the chat) at $3.57. I sold them to recover 73% of the original cost basis and let the rest ride.
It was a good short-term trade, and as Le Shrub always says, “We should give thanks.”
So why am I writing another oil trading game plan article just a week after the last one? Because I think we are approaching a critical juncture in the oil market. I want to share what I’m hearing on the oil front and how it could affect the oil trade. I also want to share my thinking on how this oil trade unfolds.