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Prepare for a V-shaped rebound in oil prices - Citi

Published 06/23/2017, 04:13 AM
© Reuters.  Prepare for a V-shaped rebound in oil prices - Citi
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  • Investors should position for a potential “V-shaped rebound” in crude prices in H2 Citigroup (NYSE:C) says.
  • While it's possible oil prices will dip even lower in near-term, Citi doesn’t see this as “sustainable.”
  • Says 1x2 call spreads and outright short-dated calls provide most attractive risk-reward. Trade ideas:
    • Buy Dec. 2017 WTI $46/$53 call spreads, sell Dec. 2017 WTI $40 puts for zero cost.
    • Buy 1x Dec. 2017 WTI $44 call, sell 2x Dec. 2017 WTI $52 calls for $1.67.
    • Buy Sept. 2017 WTI $44 calls for $1.63.
  • ETFs: USO, OIL, UWT, UCO, DWT, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM, OILK, WTIU, OILX, WTID, USOI
  • Now read: No Love For Geopolitics In The Oil Pit


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