Hurricane Season – Fill er up
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Hurricane season officially started on June 1. What does this mean? Well I am not a weather junkie. I don’t buy commodities and I don’t walk 10 miles to work. So why do I care about hurricane season you may ask? Gas. Gas prices will go up or at least the impression will be there in the market. Valero [VLO] which has already had a nice run will be a primary beneficiary of high fuel prices. Crude oil prices are under control for the time being, but the crack or spread between gas prices and oil is at record highs.
So here’s the play… Buy Valero Jan 08 $70 Calls [YPYAN.X]. Sock them away and hold for 2-3 months and sell. I am doing just that and will be doubling my position on Monday. If you encounter some extraordinary spikes in the option prices I recommend you sell half and buy back on any dips.
2 Comments on this post
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Make Money With Funds said:
Time to switch to the electric cars?
If I make enough profit from my mutual funds, I’m going for Tesla car
, it’s “only” $100,000 
June 6th, 2007 at 10:14 am -
Dax Desai said:
I’d be all over the Tesla (if I had a little more money). In the interim something like this would be nice.
June 6th, 2007 at 8:57 pm
