Friday afternoon I decided to double my positions in (BBSI) and (USO) puts, taking advantage of the big price declines in both. Frankly, I am buying these staffing companies largely because of their balance sheets, and BBSI has a very nice balance sheet that inspires confidence to buy the dips. I doubled my holding at a price of $16.05, effectively bringing my basis down under $17. Still a small position and I anticipate continuing to add on weakness.
I also added to my short position in oil by doubling my stake in the USO puts at a price of $0.80. Frankly, we are getting closer and closer to recession, and I’m not buying the argument that Nigerian production might fall or that OPEC might decrease output. OPEC is usually good at restricting supply when prices are increasing, but I doubt their ability to enforce output cuts when prices are this high due to an expected fall in demand.