With oil back around $78, the Drillers and the index act relatively weak and I bought some in the money puts today. The index went out on the low for me which is a nice start.
I had the pleasure of playing a great round of golf at one of my Top 10 courses in the world today at Beacon Hall (Aurora, Ontario). I was a guest of good friend, the long time, recently retired, CEO of Esso Canada. I shot a 79 today and may or may not post the score :)
As an aside, I may never shoot my age, but I plan to start focusing on breaking the price of oil this summer. Looks like I just missed today :) with my 79.
Although he would not offer me his direct opinions on oil, he does believe that supplies are fine and agreed that a terror premium is in oil for the forseeable future. With so many traders involved now in oil futures etc…, he believes that the price of oil has taken on a life of it’s own not directly related to supply and demand.
The weak relative action of oil stocks relative to the price make me think that the stocks trade lower. Just a gut feel at this point so I placed a small trade.