I just sold four contracts on OIH for $5.10 to rake in about $2000 in cold hard cash. This will amount to a 4.26% return in under 31 days if assigned using $119.52 as my cost basis. Note: I’ve already raked in additional cash on this puppy in previous transactions. I actually anticipate OIH dropping in March below $120 so I can buy back my calls cheap and sell into the future (April, July, January 2011). My anticipation on drop is based on winter going away thus lowering demand for heating oil and natural gas. Natural gas prices have been in the gutter lately and that gutter is about to get nastier. Note: Long term natural gas and energy prices will spike up and have been priced into markets already so please don’t send me troll posts asking why I am both shorting energy and long energy – it’s complicated!
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