Couple of opportunities are emerging again for us. I want to buy TLT, the long term bond ETF, at 94.50. Again I want to do that via very long dated options circa a year out. These options are not expensive. It also provides a chance to sell higher strike short-dated options against the lower strike long dated calls. The second opportunity is Crude Oil. I am choosing to participate through Chevron CVX. For the later I set up a spread Monday to buying the January 150 calls and selling the November 160 calls with the stock just above $150.
As I always do for subscribers we will actively manage that spread based on what the stock does from here. As the attached chart illustrates on the weekly chart CVX accelerated to a new low, found no sellers and has rebounded. It’s been in a long base and has stored plenty of energy to take out the weekly downtrend line. I think both TLT and Crude Oil will be above $100 in 2025. Lastly NVDA, this is an aggressive call but I have said for a while that above $130 I think NVDA is a short. It traded above $130 on Monday, so holding short from there.
Thanks,
Joe
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