Thursday, February 16, 2006

Slick City

Big Oil morning, if you caught the bottom last night.

Our NYMEX trades proved to be a good bet but being in "risk averse" mode we're booking profits with the QM futures up about $0.70

OIH did better then the spot (I suppose because OIH has an equities element in it and the equities market is up) and gifted us with a nice $2 gap open with a follow-through higer. We're liquidating our March 135 calls at these levels.

Oil stocks individually are probably the best of the bunch and we're either liquidating our long calls here or watching our ITM puts shrug off evil short gamma.

Yes, Oil needed to bounce. I think the bounce isn't over yet but there's likely more downside afterwards. Since I am now talking out of both sides of my mouth we have no money commited to the slick sector (aside from some remaining short gamma).



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