Bakken strategy

Posted by bakkenexpert

It seems that oil has bottomed and in some strange way may actually turn out to be a flight to quality amidst the financial turmoil that has overwhelmed the markets.   We see that XLE has massive support at 40 and oil is currently rangebound between 30 and 40.     Gas at the pump bottomed around 1.60 and 1.70 and now is climbing back above $2 in many parts of the country.   Our Bakken plays have also been quite rangebound with most in a 10% trading range.    The pure plays are off about 80% from their highs and downside from here is another 20% from current levels unless we enter a full on recession.  I am still content going long WLL or  CLR and selling monthly out of the money calls to hedge my trade.  This way I can earn 5%+ per month regardless of what the stock does by selling these calls.   Of course,  if these stocks are cut in half due to futher deterioration,  it will take a while to get your money back!   Good luck

Symbol	Last Trade		P/E	Pct from Yr High	Short Ratio
NOG	Feb 26	2.73	N/A	83.35%	11.1
WLL	Feb 26	23.75	4.00	78.87%	1.6
SM	Feb 26	13.46	9.28	79.48%	4
MDU	Feb 26	15.16	9.51	57.10%	1.3
GEOI	Feb 26	6.19	4.77	78.71%	12.7
BSIC.OB	Feb 26	0.61	7.92	79.93%	N/A
WSEG.OB	Feb 26	0.0330	N/A	N/A%	-
CLR	Feb 26	17.31	7.83	79.35%	3.9
BEXP	Feb 26	1.33	3.05	92.73%	5.1
KDKN.OB	Feb 26	0.37	N/A	89.97%	-
KOG	Feb 26	0.2506	N/A	95.44%	3
EOG	Feb 26	51.41	5.29	64.54%	1.3

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