Energies
The Middle East remains a hot button topic for energies and WTI crude oil is making some fresh highs, indicating that technically the market is at a whole new level of fear premium. Supplies are a real concern but nearly impossible to price in the full impact of a multiple oil supplier shutdown if countries like Iran and Bahrain reach those levels. While it is important to avoid short futures or option strategies with unlimited exposure to upside movement, it is worth accumulating put positions during this rally as I believe it is far more likely that the fear premium evaporates in oil than the reality of a true Middle East supply shutdown..more >>
The Middle East remains a hot button topic for energies and WTI crude oil is making some fresh highs, indicating that technically the market is at a whole new level of fear premium. Supplies are a real concern but nearly impossible to price in the full impact of a multiple oil supplier shutdown if countries like Iran and Bahrain reach those levels. While it is important to avoid short futures or option strategies with unlimited exposure to upside movement, it is worth accumulating put positions during this rally as I believe it is far more likely that the fear premium evaporates in oil than the reality of a true Middle East supply shutdown..more >>