Trade Summary: October 31, 2016

| October 31, 2016

October 31, 2016

 

Trade Rationale

This week I’ve been looking at oil prices and I think this entire market has stabilized and is poised to move higher. After reaching below $30 earlier in the year, we’ve spent the last few months trading between $40 and $50.

With increasing global economic activity and stable prices, oil companies should be rebounding and outlooks should be improving.

We’re going back to the well on this one… Valero Energy (VLO) and Halliburton (HAL) were on our trade list back in August… and we did ok racking up some nice gains. With rising oil prices, it means higher shipping costs for overland trucking… so we’ll buy a put on JB Hunt (JBHT).

 

Trade Details

#1) Buy Valero Energy (VLO) Jan 20th 62.50 Calls up to $1.40

For this trade, we’re looking for a move higher in VLO. Our first profit point for conservative traders is at $64. For aggressive traders, you can hold up to $68. For risk control, the conservative exit level is $54. Lastly, $52 is the final exit level for aggressive traders.

Valero Energy

#2) Buy Halliburton (HAL) Jan 20th 50 Calls up to $1.45

For this trade, we’re looking for a move higher in HAL. Our first profit point for conservative traders is at $52. For aggressive traders, you can hold up to $54. For risk control, the conservative exit level is $43. Lastly, $41 is the final exit level for aggressive traders.

Halliburton

#3) Buy JB Hunt (JBHT) Feb 17th 75 Puts up to $2.00

For this trade, we’re looking for a move lower in JBHT. Our first profit point for conservative traders is at $78. For aggressive traders, you can hold up to $75. For risk control, the conservative exit level is $82.50. Lastly, $84 is the final exit level for aggressive traders.

JB Hunt

 

Category: AOA Trade Summary

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