Sunday, April 29, 2007
Commercials are shorting oil which seems to be the smart thing to do. Also Deutsche Bank agrees that events like Nigeria's chaotic elections, or Iran's kidnapping of British sailors, which in the past would have caused a dramatic rise in oil's price, nowadays seem to leave the oil gnomes rather indifferent. The environment is more relaxed. I bought 100 put options on oil, expiring on November 12, 2007 at 70$ per barrel. For each dollar below 70 $ per barrel I make 100 $. This is the first time I am in this market, lets hope my perennial optimism is justified.