Nov 102009
Hey guys. Based on what I’m seeing in the energy markets, I’m looking at selling some WOOM calls on crude oil. Probably the April contract. There are good premiums available at 50% or more out of the money, and I think this is a fairly conservative play based on the economic fundamentals that are in-play out there at the moment. As always though in the energy markets, keep a close eye on things and don’t hesitate to use credit spreads if you are a little more risk-averse, or make sure you stick to your buyback price (e.g., double or triple) if you’re selling naked.
Good trading!