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James Cordier of OptionSellers.com argues news out of Iran can move the oil markets by a few dollars per barrel.
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Thanks guys thank you new reports of today's say a cyber attack.
Targeting Iran's oil ministry is the most sophisticated threat yet and we've got a commodity expert who says.
Any headlines out of Iran could boost the price of oil just a few dollars overnight.
Joining us now is James -- EA his founder of option sellers dot com so change.
You think that the -- that oil is is oversold right now -- said it's coming back to three digits soon how soon.
We think it's a quite interest -- right now open interest has been falling off dramatically.
That's the a number of long bets by speculators and editors alike on this fallen off some of fifty to 60000 contracts just recently.
Basically is a the last of the bulls we think that a bailed out of the market we think that their demand from China.
-- it has flown some is certainly.
Still robust enough to support prices we think -- this ninety dollar level.
Is going to be short lift that we think the markets actually gonna bounce any headlines out of Iran and other than that because right now we priced in such a peaceful situation there.
And that's probably not gonna remain that way for much longer we don't think.
And I think 95 oil can be a -- on the morning.
And and throw into with a cyber attack on Iran and you know people could share on saying that -- and -- the bad guys but if if this cyber attack generates.
False headlines who -- -- we -- false headline a couple of months ago where supposedly some pipeline was blown up wasn't true in the Middle East.
But we saw the oil markets gyrate on that how much a reality could that really be.
We think it'll probably be a short lived rally actually as far as headlines out of -- But being short -- over the weekend I think a lot of investors are gonna.
Go back to the a wait and see and be very careful for wrote two days that certainly is often when those developments -- out of that country and right now.
We've priced out of that market any type of problems and we think that that's gonna probably arise in the next couple weeks.
James how does that said play in all as we know that the Fed does have significant impact on oil prices all commodity prices -- oil in particular.
Operation Twist is about to end I think it ends at the end of June how will all -- affect the prices of oil.
That's a very good question certainly -- that strength of the dollar recently.
-- what's brought -- a lot of commodities down especially the oil in the gold market but we think that there's going to be some sort of thought capitulation or some.
Development in Europe that's gonna finally put a low in the Euro either increasingly yeah.
That -- the system and then the Euro bounces back.
What we have an amazing size that portfolio as far as of bailing out these banks and either way we see a floor being put under the Euro because of that.
And what the Federal Reserve does here certainly were coming up on election the economy continues to -- -- along at a very slow rate.
They could come up with another quantitative easing three.
And that a gold and oil would be a huge gain by that.
Will be watching that James that -- if your company's option sellers dot com.
We be remiss if we didn't ask you about FaceBook first day that options can trade and we saw that stock -- what was the action like.
It's really interest thing quite often.
What the first -- option trading that takes place you have a lot of volume.
I think the fact that we've we've dove and over ten dollars from the first day of trading.
I think that says a lot about the market it appears that based on option selling.
We're looking at probably FaceBook 1252647.
Dollars or bottoms out while by the way we have seen prices depending on which side of an option -- -- From five dollars all the way up to 65 dollars it just shows you that the market still doesn't know what this thing is gonna do with the future right.
It's going to be interest think it appears that we've got a little bit further to go down and then when we see forty dollars again it might be quite some time.
-- -- -- founder of option sellers dot com we'll see you next time thank you so much thanks -- -- -- --
