Boiler Room: The Official Stock Market Discussion

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Brady Hoke's Artery said:
I think there is more downside to oil and the EIA keeps revising oil forecasts downward... I'm not bullish on oil recovering any time soon, unless the Saudis surprise with an emergency meeting or in December's meeting decide they (+OPEC) can't take the pain anymore or more shale drillers go out of business next year after hedges roll off the books. Supply needs to be cut.

CVX is screaming buy right now technically, so maybe a short term bump.... and I think if you're buying stock outright, although it could go down more, it's still a great entry point. I'm not liking the options right now though. I buy long term options, preferably LEAPS and volatility is still too high, which causes premiums to be too high. I'd prefer to see oil be rangebound at these levels for awhile, so volatility and options premiums drop, then buy a bunch of out of the money calls for 2017 with a strike that equates to where CVX was trading when Brent was around $65... so maybe some CVX 2017 options at $90 strike. I think Brent at $65 next year and a half is reasonable and who knows... could far exceed that.
Click to expand...

Why don't I listen to my own advice?

:francis:

If I would have bought a $90 2017 strike in August

:mjcry:
 
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