Weekly Update: April 15, 2015

Weekly Update: April 15, 2015

 

Big Picture Outlook:

Believe it or not, WTI crude closed Tuesday’s trading session near the top of a multi-month range near $54 a barrel.

Now listen closely.  Since I’m writing this update early Wednesday morning, I don’t yet know the results of the EIA’s weekly crude inventory report schedule for 10:30 AM EST today.

This morning’s report could be a game changer for investors’ sentiment towards oil.

If the report shows a smaller storage build than expected, we could see a technical breakout above $54 a barrel.

If this situation comes to fruition, I expect investors to start pouring money into energy stocks.

With that said, let’s get to this week’s updates…

 

Portfolio Highlights:

Editor’s Note: I won’t update every open position in every update.  I focus on the positions with significant news or price movement.

. . . . EOG Resources (EOG) April 17, 2015 $95 calls

EOG came within a whisker of our second price target at $97 yesterday.  The recent upturn in EOG sent our April $95 calls up to a $1.90 bid yesterday- that’s a 62% gain from our entry.

If you’re still in these calls, make sure you exit them by Friday’s close of trading.  If you don’t, you’ll own 100 EOG shares for every call contract you have in your account on Friday’s close.

This trade is officially closed.

. . . . Oasis Petroleum (OAS) May 15, 2015 $15 calls

OAS is turning into a very nice winner!  Shares of the Bakken producer hit our first profit target at $18 in yesterday’s session.  The strong rally off the March lows sent our $15 calls up to a $3.10 bid, which is a 138% gain from our entry.

If you’re conservative, be sure to take some profits off the table.  If you’re aggressive, keep holding for our second profit target at $22.

Congratulations on a nice trade!

. . . . WPX Energy (WPX) May 15, 2015 $12.50 calls

WPX is pressing multi-month highs at the $13.50 area in recent trading.  If oil rallies strongly above $54 after today’s EIA report, I expect WPX to make a run for the $16 area.

Keep holding your call contracts for higher prices!  Our profit targets are at $16 and $18.

. . . . Oneok Inc. (OKE) July 17, 2015 $50 calls

OKE is on the verge of a technical breakout.  Shares of the pipeline and storage operator closed at multi-week highs just over $49 in yesterday’s session.  One more day of strong bullish action and this one could be on the road to much higher prices!

We have plenty of time left until expiration so keep holding your calls for higher prices!

 

Category: Commodity Trading