Buy Alert: December 19, 2014

| December 19, 2014

Buy Alert:  December 19, 2014


Trade Details

Buy Union Pacific (UNP) January 17th 115 Puts for $1.80 or better



Railroads sold off along with crude oil for about a month. But, they’ve since rebounded. In fact, UNP is already nearing its 52-week high. However, railroads could take a significant hit with lower crude oil prices. Rail transport won’t be as demanded with other forms of transportation becoming cheaper. Not to mention, trains carrying shale oil could see far less usage.

We’re going to buy January puts on UNP. Conservative investors can take profits at $110. Aggressive investors can hold down to $105. For risk control, conservative traders should exit at $123, while more aggressive traders can hold to $125.


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Category: OTW Buy Alerts