Sell Alert: November 19, 2013

Sell Alert: November 19, 2013

 

Option Strategy:

Sell to close the US Oil Fund (USO) December 2013 $36.50 puts.

 

Commodity Outlook: Crude Oil

Time is of the essence this morning…

Even though oil hasn’t hit our second target of $90 a barrel for this trade, now’s the time to take our gains to the bank! 

You see, Middle Eastern violence could be on the verge of heating up again.  In case you’re unaware, the Iranian embassy in Beirut was bombed early Tuesday morning, killing at least 23 people.

Another uptick in Middle East uncertainty will likely put a floor under crude for a while.  If things really start heating up, we could see oil jump back towards the $100 a barrel mark.

Go ahead and sell to close the USO December 2013 $36.50 puts.

As I write, these contracts are trading for $2.80… that’s a 103% gain from our buy price of $1.38.

Congratulations on a great trade!

*** Editor’s Note*** Be on the lookout for another trade in your email inbox soon!

 

Category: Commodity Trading