Are you doing any option plays for NFLX? Now that the right shoulder has matched the left shoulder, thinking about doing some March OTM put spreads.
The previous low held during the retest. However, it now appears to be forming another descending triangle having a base at 17.10 Looks like the apex of the triangle will be formed on Tuesday.
Looking at the one year chart, 450 would make for a balanced H&S pattern. Shorts would probably be jumping in at that level.
New article just out about this:
"The ECB's 4 QE Scenarios, And Why CS Thinks Waking From The "QE Dream" May Be The Worst Possible Outcome"
Looking at the 6 month chart, PVA is now near the top of the descending channel. Unless there is a rally in oil, what would be the possibility of PVA breaking out of this channel.
With GILD at 97.21, consider the Feb 90/100 call spread for a debit of around 5.45 ($545).
You will be paying nothing for time premium and actually gaining intrinsic value, giving you an effective cost per share of 95.45. Looking at the Head & Shoulders pattern, this would provide you with a good risk/reward play.
This article "The Battle Between WTI and Brent - Why the Oil Price “Spread” is Getting Tighter" explains the significance of the spread.
An alternative to owning shares or options on USO. Only if you are ready to go long oil.
The reason I had asked is because of this info from Wikipedia.
"Oil wells are generally classified as stripper or marginal wells when they produce ten barrels per day or less for any twelve-month period. In the United States of America, one out of every six barrels of crude oil produced comes from a marginal oil well, and over 85 percent of the total number of U.S. oil wells are now classified as such. There are over 420,000 of these wells in the United States, and together they produce nearly 915,000 barrels (145,500 m3) of oil per day, 18 percent of U.S. production."
What does it actually mean when an oil co. says their cost is $90? Does this include an amortized cost of the actual rig? Once a rig has been constructed and is operational, what would be the actual operational cost to extract each barrel of oil (ignoring the actual cost of the rig)?
Could be nice if this ends up being another double bottom.
Joe Terranova is long VXX, AAPL, COG, and MCK
This seems to be a balanced portfolio. He is in AAPL for the earnings play. He was not clear about VXX. Maybe he is expecting more volatility.
With PVA at 5.72, the June 5.00 put could be sold short for around 1.00
Think of this strategy as buying a very high dividend stock or even a bond. The effective annual yield would be 40%. In the event that the shares are "put" to you, your effective cost per share would be 4.00
In February 2009 after it had bottomed to around 35, crude then rose 7.4 percent while USO fell 7.4 percent.
This is from the article: "Is “Contango” Affecting Your ETF Performance?"
As the price of oil begin to rally, the spread between the futures prices and the cash price will begin to widen in anticipation of higher future prices. This in turn will cause the contango effect to become worse for each roll of the contracts.
Roll Dates are the expected dates on which the composition of the Benchmark Futures Contract is changed or ''rolled'' by selling the near month contract and buying the next month contract. The change occurs over four days.
I took another look at their prospectus. The shares will be redeemed after an acceleration event occurs. It is not clear what such an event would be, but this would appear to be better than just closing down and leaving the shareholders with nothing.
For now, the way to play this could be to just day trade the opening gap down, since this ETN is intended only for single day trades. It seems that there are now more traders coming in to play the long side. Maybe start accumulating shares when oil is in the mid 40s.