- $10KP – $33,500 / 61% Cash
- Holdings Watch Comments: Another good week for the energy groups. I’ve been adding calls into market and sector weakness for the last two weeks in the wake of 1Q earnings. I’m now thinking of taking a few chips off the table into near term rallies. Remember that June is one of the rare expiration months where you get five weeks in between options expirations so the front month contracts still have 3 weeks of life left after this week.
- Closed trades for the week:
- Sold the SWN June $40 calls for $4.10, up 56%, felt extended, will buy it back lower later. Natural gas not holding the $4 level well after the release of March supply data.
Sold the 5 EOG $70 calls for $4.60, up 111%. This amount of profit essentially makes the $80s I still hold into next week a free ride.
Sold the PXD $25 June calls for $3.40, up 53%. I have enough higher strike leverage here going into the coming week as we anticipate operational news.
- I’ll have the natural gas slide show out in the Monday post but in a nutshell, the EIA natural gas monthly released on Friday didn’t wow me or gas traders.
- Shipping rates are on a tear, up 50% in the last week and over 600% year to date for the Capesize ships and I’d expect similar moves for smaller dry bulks . The stocks are starting to turn up and anecdotal evidence points to a little improvement in traffic. More on this later this week.
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