Weekly Update: September 9, 2015
Weekly Update: September 9, 2015
Big Picture Outlook:
No doubt about it, there’s still an unusually high level of volatility in the marketplace right now. Stocks are getting whipped around like a pitchfork in a tornado as investors decipher incoming global economic news.
Here’s the thing…
One wrong move in these wild markets and your portfolio can get stabbed with the business end of our hay-tossing friend. The high volatility, mixed with a trendless environment, is a bad mixture for our style of option trading. That’s precisely why you haven’t seen a new trade in this service since the 28th of August.
Folks, there’s no sense establishing new trades when the odds of success aren’t in your favor.
When can you expect a new trade?
I have my eye on a few technical setups that are forming as I write. If the technical factors are present for a buy recommendation, you’ll have new trades in your email inbox by the end of this week.
Until then, hang on to your hat!
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.
. . . . Silver Wheaton $SLW October 16, 2015 $13 puts
$SLW just can’t catch a break…
Shares of the silver streaming company are sinking below $11.50 in recent trading as investors factor in ongoing weakness in the price of silver and seemingly never ending equity market volatility.
Remember, we already collected gains of around 120% on our $13 puts when $SLW collapsed to our first profit target at $12.
If you’re aggressive, keep holding these October puts for further weakness in $SLW. Our second profit target is at $10.00!
. . . . Goldcorp $GG October 16, 2015 $14 puts
Thanks to today’s $14 an ounce downturn in the price of gold, shares of $GG are sinking back to the 52-week lows near $12.50. While we may see a slight bounce for $GG from this technical support area, the strong bearish trend still supports further downside in this gold miner.
Remember, aggressive traders should have collected partial profits when $GG hit our first profit target at $13 on August 26th. With the price of gold likely to keep falling in coming sessions, there’s a very good chance $GG breaks to new yearly lows soon.
Our second profit target is at $11.00!
. . . . US Oil Fund $USO November 20, 2015 $14.50 calls
WTI is back under pressure today as investors continue pricing in Chinese growth worries. The commodity is sinking under $45 a barrel and looks as though it has the potential to drop back to the $40 area.
Remember, we already collected a quick 50% profit when $USO hit our first profit target at $16.00 on August 31st.
We still have plenty of time left until expiration in this trade so don’t be afraid to hang on to these calls a bit longer.
. . . . Oasis Petroleum $OAS October 16, 2015 $11 calls
Due to today’s crude oil downturn, $OAS is back under $10 a share- not what we want to see.
Since these calls didn’t react the way we expected when $OAS was breaking over $11 a few days ago, I suggest everyone close this trade if the Bakken oil producer falls under today’s low of $9.80.
Until next time,
Justin Bennett
***Editor’s Note*** I’ve recently joined the Twitter revolution! In case you’re unaware, Twitter is a remarkable tool for distributing timely market information. Throughout each trading day, you’ll find me posting commodity related articles and information that will help you get a handle on the markets.
If you’re interested, you can follow me by searching for my twitter handle: @CommodityRes
See you in the Twittersphere!
Category: Commodity Trading
