Yo Pit Crazies,
Politicians talking about putting caps on oil prices …
Chucking Uranium power plants for coal fired plants …
The Italians telling the Russians how much they will pay for natural gas …
There are things I like about the 70s – like disco (sue me!), Farrah Fawcett hair styles (and Farrah Fawcett herself) and muscle cars.
Price controls are not one of them.
They didn’t work then and they won’t work now.
But someone liked the idea.
Oil Stocks Rocked on Tuesday
Pretty Much every oil stock looked like this yesterday …
A snapshot of XOM.
A good size jump followed by a drop in the IV across the term structure (the average IVs per month; also known as Sigma).
My students in Cap Gains liked XOM to go up during class last Wednesday and I should have listened, although it did get down to the low 80s on Friday. 20% drop seems that some big fund had to exit to raise cash.
10-day XOM Chart with one-minute candles.
All this price cap news coming out of the G7 is not a good sign … for the G7.
I think the major oil companies will retake their highs simply because the G7 governments are doing the opposite of everything to bring down oil prices.
I will come up with the play in Capitol Gains tonight. If anything, the G7 is adding more fuel to the fire.
But first …
The SPY Masters first session and trade will happen today, and it’s the last day to get Founder’s pricing.
And even before that …
The Rundown
Power Income Trader
Bill closed some iShares iBoxx High Yield Bond ETF (Ticker: HYG) put spreads for a 59% gain.
Pro Chat Room
Cat landing on her feet, just like a Cat:
To Your Trading Success,
AG