Low risk Buying opportunity for Heating Oil?!The momentum is dying any time the price is coming low. Maybe the price action have another attack to upside and break the upper side of the triangle.
AHLM2014 trade ideas
Heating Oil Front Month - Lock in Low Prices for next winterThis is a decent price to hedge and lock-in the price of your home heating oil for next winter while prices are relatively low in the range of the past 2 years. Sure, the price could go down, but I like the odds here. Heating oil is oversold and you can confirm what you will pay for next year.
If prices rise sharply from here, you are locked in for the season and you can bank the profit or hold the hedge in case prices go even higher.
I think it often makes sense to put positions on that hedge your portfolio and then trade around those hedges.
Look to the Dec 2014 Contract for trading, but this contract is plotting the front month only.
Tim 6/5/2014 2.85 last 9:15AM EST
Short HEATING OIL against buying CRUDE OILBuy the laggard: CLZ2012 Crude oil. 90.84 last (delayed quotes)
Sell the leader: HOZ2012 Heating oil. 3.1399 last (delayed quotes)
