How can you make money on #oil into the Saudi Arabia news/protests tomorrow?

How can you play oil or How can you make money on #oil into the Saudi Arabia news/protests tomorrow?

Today news came out that Saudi Arabia was firing on protesters & oil spiked up in 15 minutes after that from $101.50 to $104+ initially

You could look to play oil ETF 's based on any news that comes out tomorrow or to play just the oil Futures ( CL_F) 


Here are some charts for you to look at :

Oil Futures is a good way — either playing long or going short ( but % gains or losses will be huge depending on your overnight margin)

Today we have to watch the key levels like $101-$100

and that $104 where it bounced up & had some initial resistance after the shooting news came out

double click to see chart clearer & notes — or right click & open in a new tab or window

CL_F or CLJ1 charts (5min. & daily charts) 




or you could play the ETF's which as you can see you can play based on key levels i've posted in the charts

$UCO & $SCO are ( the oil Bull & Oil Bear ETF's ) I've played $ & $ in the most recent oil volatility which is similar to playing UCO or SCO positions. You can see the key levels on UCO & SCO will be interesting to see where we end up tomorrow   


Double click on the chart to see the notes bigger & clearer or right click & open in a new page or tab

UCO & SCO (5min & daily charts ) 


To recap :

1 )if you think protests will be a non-event & oil drops back under $100 then go long $SCO 

2 )if you think the protests will get worse and oil will continue higher and over most recent highs then you should go long $UCO 

3) If you won't be able to sleep owning anything to do with #oil then i'd suggest not trading either positions or futures & just watch CNN and hope that not too many people die during the protests.  

4) if you think we get a major pop in either direction you could buy both the calls & puts on USO ( so a strangle or straddle option play – USO is currently at  $41.50  ) more aggressive is doing the weekly $42's which right are pretty close so major move would wipe out one call/put and you'd lose on the other match. If the protests are postponed then could look to do next week on them. Here are screen shots on USO and the weekly options. ( I'll get mmassassin to explain those in a future webinar –he's very knowledgeable on weekly options) 


Hope these charts are helpful 





Posted in General Trading