Tuesday, October 18, 2011

How to profit from the impending war on Iran

The stage is set. We've got the fake Iranian plot to carbomb Saudi Arabia's man in Washington. We've got the American boots on the ground in Uganda, drawing a line in the sand on the south flank of Islam in Africa, and, very much related to that, we've given the Kenyans a blank check to invade Somalia. By blank check I mean that every bullet, every RPG, every bomb, and every mortar round that Kenya's army uses in this invasion is being paid for by the American taxpayer.

Meanwhile, Netanyahu just made an existential sacrifice, trading a thousand terrorists for a single Israeli hostage. I've followed Binny's career long enough to know he doesn't make a decision like this because he's a nice guy. He's got a few Goodwill Shekels in the bank now. He'll be betting large on them. Really large.

So how can you profit from this? When Binny pulls the trigger, with our blessing of course, oil is going through the roof. Here's how you profit.

Really safe no risk strategy, buy shares in the international majors. Ask your broker.

Somewhat risky fail-safe strategy, buy oil future options. Go for a ridiculously high strike price. Two hundred a barrel seems insane now but it'll be cheap after Binny pulls the trigger. Ask your broker.

Side bet: the Canadian oil sands are going to be super golden once America's middle east oil supplies are cut off. I'd go for long term buy options on the shares of any of the big players in the oil sands.

Talk to your broker.

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