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Oil Prices Hit $75

Oil prices hit $75 on option expiration activity and the switch from the May contract to the June contract. If you are a trader I would recommend shorting the electronic crude contract (QM06M) at this level. I believe this is the result of a very strong short squeeze and will back off these levels next week.

XLE Puts

Another potential trade for Friday afternoon would be buying puts on the IYE. This is the Dow Jones Energy Sector Index Fund. The IYE broke over $100 for the first time on Friday. I recommend buying the May $100 Put IYE-QT currently $2.45. This would be an ideal way to hedge our gains on the individual stocks.

Jim Brown 

Leaps Trader Intra-Week Blog Archives