Rikiki

Oil: Long-Term Bull Still Intact; Short-Term Weakness Should Persist

CHL et. al.

The oil production countries are not exactly the most stable in this world. Any conflagration, assination, revolution, or inter-tribal wars can easily spike oil by huge amonts in a very short time.

In short, oil, oil futures and oil stocks are mega risky. Suggest you consider puts on all your long stocks and calls on all your short stocks.

Consider the following risky oil producers as my case in point:

Iraq, Iran, Saudi, Nigeria, Venezuela, Russia and China.

If you are bullish consider Longer term call spreads on DIG; If bearish use the DUG call spreads. Limit your losses (and gains).... but predictable max and min $ for positions.

RIkiki