Saturday, December 24, 2011

$OSX:$OIX again

it is always dangerous to place too much emphasis on a single indicator, but the persistent deterioration of the $OSX:$OIX ratio cannot be ignored. plus, oil (along with all else) has been rebounding on paltry volume.

I bought deep-out-of-the-money puts on December 2012 WTI late last week. pretty speculative as a trade, but I prefer to view it as a hedge to our future income (my employment and Lisa's mineral rights).