Oil and gold prices set to soar on the developing IRAN story

[cubical]

My oil plays have been average at best and brutal at worst. I believe I will be selling if we have any sort of a pop on an Iran event.

[Zippyjuan]

I haven't posted in this thread since early July now. And oil never climbed above 100 $ again and now it's trading at 90.

BUT something very interesting happened during the last few days:

1. The Tel Aviv stock index crashed and diverged heavily from the S&P 500. (remember Israel doesn't close markets for Christmas)



2. Oil massively outperformed stocks, bonds and other commodities today by rising 2.75%:



3. Iran is planning a naval drill in the straight of Hormuz, beginning tomorrow:


http://in.reuters.com/article/2012/1...8BO03A20121225


Combine these facts and things are smelling very fishy...
Maybe we're up for a geopolitical black swan.

2) One day differences mean nothing but what is perhaps going on is concern over the Fiscal Cliff so some investors moving from stocks into commodities.

3) Iran runs exercises in the area a couple of times a year. No big deal.

[Endthefednow]

My oil plays have been average at best and brutal at worst. I believe I will be selling if we have any sort of a pop on an Iran event.

HI, I would hedge my positions if you are long on oil, I would purchase 2 Put Options or one extra option to counter any losses.
If you are shorting oil I would purchase call options.