Per my comments in yesterday’s webinar, oil has now reached the $40 to $41 resistance level, and is subject to a short-term pullback, sideways consolidation period with a slight upward bias, before heading higher into May.
You have an open gain of as much as 43% on the April 2016 $9 call options, but are in the losing column on the April 2016 $12 calls. And you are on the sidelines with UWTI now.
Here’s what I recommend:
Roll forward the April calls to the July 2016 UCO $10 calls. This gives you plenty of time to take advantage of the bias to the upside in the short-term, and the acceleration expected higher to the $50 to $53 level come late April/early May.
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To do this, please follow these instructions … For Members Who Own Either the 1. SELL ALL of your April 15, 2016 ProShares Ultra Bloomberg Crude Oil (UCO) call options, with a strike price of $9, symbol UCO160415C00009000, at $1.85 or better, to close, good till cancelled. 2. SELL ALL of your April 15, 2016 ProShares Ultra Bloomberg Crude Oil (UCO) call options, with a strike price of $12, symbol UCO160415C00012000, at $0.40 or better, to close, good till cancelled. 3. Using the proceeds of the above sales, if executed, or no more than 4% total of your trading funds, BUY TO OPEN, the July 15, 2016 ProShares Ultra Bloomberg Crude Oil (UCO) call options, with a strike price of $10, symbol UCO160715C00010000, at $2.25 or better, good till cancelled. |
For UWTI, I will recommend a new long position, but wait for my signals.
Gold is now down some $17 from its spike higher on Wednesday’s Fed meeting announcement. So far so good. As noted in the webinar yesterday, most, if not all the action you saw after the Fed meeting announcement was nothing but background noise in the markets.
A close in gold back below $1,245 will be a minor sell signal, but would indicate the resumption of the downtrend.
Hold all other positions and stay tuned …
Best wishes,
Larry
