Weekly Update: March 5, 2014

| March 5, 2014

Weekly Update: March 5, 2014


Big Picture Outlook:

Crude oil is declining today thanks to a slightly bearish EIA oil inventory report.  The closely watched data release revealed crude stocks rose by 1.4 million barrels for the week of February 28th.  While it’s not an overly large storage addition, it’s enough to convince oil bulls to step to the sidelines for the time being.

As of this writing, WTI is crossing the tape at $101.58, down $1.76 per barrel on the day.

On the other hand, precious metals are holding their ground…

In spite of the solid February gains for gold and silver, both metals are still trading near their recent highs.  From a technical perspective, that’s a good sign these metals have an opportunity to rise further in coming weeks.

Be on the lookout for a gold miner based option trade in your email inbox soon!

Let’s look at our other open positions…


Portfolio Recap:

 . . . . Encana (ECA) July 18, 2014 $19.00 Calls

Encana ran to a mid-session high of $19.80 today as investors jumped at the opportunity to ride shares to a potential technical breakout.  However, as crude prices weakened, Encana gave up much of its early day gains.  As of this writing, ECA is trading at $19.53.  Our July $19 calls are trading at $1.60 x $1.80. 

Remember, our maximum buy up to price for this trade is $1.75.

We have plenty of time until expiration, so keep holding this trade for higher prices!

. . . . Oasis Petroleum (OAS) April 17, 2014 $45.00 Calls

Oasis shot out of the gate with big gains on Tuesday.  However, like much of the exploration and production industry today, Oasis gave up yesterday’s gains and more.  As of this writing, Oasis is trading at $44.29.  Our April $45 calls are trading at $1.80 x $2.00.  Our maximum buy price is $2.20.

Keep holding this trade for a rebound and further gains through March.


Category: Commodity Trading