Weekly Update: June 10, 2015

| June 10, 2015

Weekly Update: June 10, 2015


Big Picture Outlook:

Crude bulls are back!

West Texas Intermediate (WTI) is rallying to multi-week highs today after the EIA reported a steep downturn in US crude stockpiles.  For the week of June 5th, oil in storage fell by 6.8 million barrels.

The news has WTI closing in on the highs set in early May at the $62.50 a barrel area.

If bulls can take down that level, we’ll likely see a run to $65!

Let’s check in on our open positions…


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.

. . . . US Oil Fund $USO July 17, 2015 $20 calls

Our $USO calls are firmly in the money with today’s push to higher prices.  Bulls have control of the oil market now that EIA data shows the high-demand Summer driving season is kicking into high gear!

Keep holding these calls for higher prices.  Remember, our profit targets are at $21.50 and $23.00!

. . . . Newfield Exploration $NFX July 17, 2015 $37 calls

After tagging our $35.90 risk control line last Thursday, $NFX jumped back above our strike at $37 this week.

If you’re a conservative trader, you may have chosen to close this trade for a small loss- and that’s ok!  There are more trading opportunities coming your way.

If you’re aggressive and still holding these calls, keep doing so.  There’s a very good chance $NFX breaks above $38 with gusto in coming days.

. . . . iShares Silver Trust $SLV July 17, 2015 $16.50 puts

Bears are ganging up on silver in recent trading.  The metal fell below $16.00 an ounce this week, and looks poised for additional downside in coming days.

The recent downturn sent our July $SLV puts up to $1.29 a contract on Monday.

That’s a 93% gain from our entry at $0.67!

Remember, our first profit target at $15.50 has already been met.  That means conservative investors should have already locked in profits. If you’re aggressive, keep holding for our second target at $15.00!

. . . . Market Vectors Gold Miners $GDX July 17, 2015 $19 puts

$GDX is hanging on to the $19.00 support level for dear life.  However, I thing it’s just a matter of time before sellers send the gold mining ETF to the March lows.

Keep holding these puts for additional gains.  Our profit targets are at $18 and $17, while our risk control line is at $20.10.

. . . . US Natural Gas Fund $UNG July 17, 2015 $14 calls

Natural gas is rallying towards the May highs!  As a result, our $UNG $14 calls went back in the money today.  Remember, we already locked in gains of at least 100% when $UNG hit our first profit target at $15 last month.

If you’re still in a few of these calls, keep holding them until expiration next month!


Category: Commodity Trading