On Saturday, a strike on two major Saudi Arabian oil refineries knocked out about half of the country's oil production. Late Sunday the world oil markets opened for the first time since the attack. The reaction:
Oil Explodes 19% Higher, Biggest Jump In 28 Years
All of these optionable stocks and/or ETF's are now in play:
USO - Crude Oil ETF
XOP - Oil & Gas Exploration ETF
XLE - 3X Oil & Gas Exploration (An alternative to options.)
Oil dependent stocks sectors will also be in play; the transportation sector in particular:
IYT - Transportation Average
AAL, DAL, LUV - Airlines
FDX - Federal Express
UPS - United Parcel Service
UNP - Union Pacific (Rail)
CSX - CSX (Rail)
On a worst case basis, the entire global stock market is in play, including ETF's of emerging markets with economies extremely sensitive into the price of energy:
EEM - Emerging Markets
EFA - Developed Markets
RSX - Russia
KSA - Saudi Arabia
We will be making recommendations as this week unfolds and the magnitude of the event and its repercussions begins to make itself known.
If there ever was a time to get aggressive trading options in the stock market, and in particular energy and related sectors, THIS IS IT!
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