Sell Alert: February 7, 2014

Sell Alert:  February 7, 2014

 

Option Strategy:

Sell to close the US Oil Fund (USO) February 2014 $33.50 calls.

 

Commodity Outlook: Crude Oil

No doubt about it, crude oil is surging today…

In fact, the commodity is trading up $1.18 a barrel to $99.02 as I write. 

As you know, our second profit target in the USO call trade sits at the $100 mark, just a stone’s throw away.

But here’s the deal…

There are multiple technical resistance levels in the $99-$100 a barrel area that could turn WTI lower at any minute.  As a result, let’s not chance any of the hard earned gains we’ve made thus far for the relatively small amount of upside to our second profit target.

Go ahead and sell to close the USO February 2014 $33.50 calls.

As I write, these contracts are trading for $1.90… that’s a 118% gain from our buy price of $0.87.

Congratulations on a great trade!

 

Category: Commodity Trading