Philip Davis

Options Trader: Wednesday Outlook

Actually we haven't been short on oil since we made a fortune in the fall when it double topped at $100 and we bet the farm both times. We started shorting again at $110 with a plan to roll up and double down on our puts for 3 months but we already had a great expiration in March when oil plunged from $110 to $98 so this (April) looks to be a losing month for us if you don't count SU, who just made us a mint, or OIH, who just made us a mint or BTU, who just made us a mint but XOM, CVX, USO and XLE haven't paid off for us yet but please sell us puts at these prices if you are bullish.

Just this Monday, right here in SA, I said buy PTR (up 13%), FTO (down 5%) and COP (even) as hedges against our puts on SU (down 4%), USO (up .5%) and XOM (flat) so I can only assume you don't actually read the posts, just spout off against anyone who challenges your world-view.

Of course at $120 we went all short and you can tell me how smart you are in June if oil holds up here but I say it's unsustainable and that's where we're placing our bets but we need people like you or we couldn't possibly find people willing to bet oil goes higher from here so thanks for being there for us!

Bluedog - I won't get into WHY a guy who's taken over $250M in contributions from oil companies won't release the SPR and knock of $7.3Bn in annual revenues for each dollar a barrel oil goes down (think about how cheap that ratio makes it for oil companies to buy politicians, pay off Nigerian warlords etc) because Yape will call me a dope or Michael Moore and hurt my feelings...