Facebook Twitter
Now With Over 23,000 Reviews!
Sign up now

Chart of Day: Oil slips to $30, handing us 184% Win

Jan 12, 2016

On January 7, 2016, we issued this recommendation: 

  • Exxon Mobil (XOM) March 77.50 put [bought at $3.05]. It last traded at $4.20. Sell to close half.
  • Exxon Mobil (XOM) February 77.50 put [bought at $2.40]. It last traded at $3.65. Sell to close half.
  • Chevron (CVX) February 2016 90 put [bought at $3.50]. It last traded at $8.05. Sell to close half.

Let’s go ahead and sell to close the second halves here to secure gains. Both are finding support after sell-offs on hopes that OPEC will have an emergency meeting to cut production.

At least, that’s the hope…

But there’s very little reason to believe that meeting will take place, with some members already throwing cold water on the idea. Once the excitement over the OPEC rumor fades, oil is likely to resume its downtrend… and take oil majors back down with it.

Again, sell to close the above-mentioned trades… but look to reopen once reality hits.

  • The Exxon Mobil March 77.50 put last traded at $5.40 for gains of 77%...
  • The Exxon Mobil February 77.50 put last traded at $4.93 for gains of 105%...
  • And the Chevron February 90 put last traded at $9.93 for gains of 184%.

Not bad gains at all since the original recommendation on December 24, 2015…

Congratulations on the wins. 

 

Chart of Day: Oil at 12-Year Lows…

Jan 11, 2016

Over the last few months, insiders, billionaires, analysts, and investors alike have lost millions of dollars betting on oil upside… If you remember, T. Boone Pickens called for $70 oil last year, for example.

Diamond Offshore insiders bought $4.8 million worth of stock. They’d buy $695,000 worth of Occidental Petroleum at an average price of $69.50. Insiders bought Exxon at $78.07. Investors rushed to buy the U.S. Oil Fund with more than $379.4 million.

The USO has since fallen from $16 in September to less than $9.30.

Investors bet wrong…

Even Andy Hall has consistently said the world is not awash in oil… even though it truly is. All the bulls were wrong, as oil now pulls back to $31 a barrel… on its way to $20 a barrel.

Goldman Sachs…even Morgan Stanley believe oil is heading lower…

Do yourself a favor. Don’t buy oil here, or on any bounce. You’ll lose money. If you’re smart – and betting as we have – you’ll continue to short oil with put options on major oil companies, like Exxon and Chevron.

 

 

 

Chart of Day: Wal-Mart (WMT) Pays off Big Too…

Jan 07, 2016

The Dow has lost about 900 points, or 5% of value within days.

Things may get worse before they improve. But not every stock is taking a hit. Wal-Mart for example has jumped nicely since the New Year began…

And that’s great news for us.

On November 5, 2015, we noted the stock was oversold… tough to ignore, as RSI, MACD and MFI were all on the floor, indicating a potential swing higher for patient investors.

We recommended buying the WMT January 2016 60 calls, the WMT March 2016 60 calls… and even the stock up to $60 a share.

The WMT stock – picked up at $58.60 – now trades at $65.03. Sell half.

The WMT January 2016 60 calls – picked up at $1.35 – now trade at $5.20. Sell to close the position.

The WMT March 2016 60 calls – picked up at $1.20 – now trade just under $4. Sell to close just half of the trade.

 

Chart of Day: Oil continues to plunge…

Jan 07, 2016

This is really too easy…

For quite some time, oil insiders, billionaires, average investors… many bet on oil upside, strongly believing a bottom was in place. Unfortunately, we’re nowhere near a bottom for oil prices…

We must also realize there are about 100 million barrels of oil sitting off the coast of the United States, as well as fresh supply likely to come online from Iran.

Betting on oil upside was a fool’s bet, as it now pushes to lows of $33.77.

Those that played oil well are doing more than okay, like us.

In fact, we recommended buying the following:

Exxon Mobil (XOM) March 77.50 put [bought at $3.05]. It last traded at $4.20. Sell to close half.

Exxon Mobil (XOM) February 77.50 put [bought at $2.40]. It last traded at $3.65. Sell to close half.

Chevron (CVX) February 2016 90 put [bought at $3.50]. It last traded at $8.05. Sell to close half.

 

Chart of Day: Dow Jones Industrial Average (DJIA)

Jan 07, 2016

It really should not be this easy to make money…

As China makes a mess of the markets, the DIA March 2016 164 put, recommended on January 4, 2016, is already starting to move nicely. We recommended buying up to $4.50 that day. It traded as high as $3.94 that day.

At the moment, it’s up to $4.95 where we’d recommend selling to close half.

The fall is far from over… Hold the second half.

 

Page:   ... 56 ...