Options Action Alert: “Be Fearful When Others Are Greedy”

It’s Warren Buffett’s No. 1 rule for investing. It’s Warren Buffett’s No. 1 rule for investing. [Energy and Capital logo] Options Action Alert: “Be Fearful When Others Are Greedy” [Sean McCloskey Photo] By [Sean McCloskey]( Written Oct 29, 2021 One of Warren Buffett's most famous investment sayings is “Be fearful when others are greedy. Be greedy when others are fearful." And the proof is in the pudding. Based on this simple idea, the Oracle of Omaha has amassed a net worth of over $105 billion. You don’t have to like him. And you may think the near-mythical stories of him still driving a beat-up Volvo, ordering McDonald's every morning, and washing it all down with a Coke Classic are pure folly. But you can’t argue with his success. He’s still Wall Street’s lead dog. So when he goes on record and says “being greedy when others are fearful and being fearful when others are greedy” is what made him so rich, he’s not blowing smoke. You better consider making his philosophy your own. Is the Oil Trade Getting Too Crowded? In short, the answer is no. But it sure is getting closer to a reversal. The energy sector boom, fueled by a major surge in oil, gas, coal, and related equities this year, is becoming a hugely popular trade with both retail and institutional investors. We’ve been able to capitalize on this run-up in sector value by cashing in on fast-moving call options on both Baker Hughes Co. (NYSE: BKR) and Chevron Corp. (NYSE: CVX). Both of those trades turned out great, giving my followers flash gains of 80% and 200%, respectively. Based on my observations and research, I think we may see a brief pause in oil’s surging price. In the short term, I think we will see a brief cool-off period in which oil prices trend sideways and those who rode the boom for months take much-deserved profits off the table. In fact, the U.S. Energy Information Administration (EIA) reported this week that it expects Brent Crude prices to remain around $81 for the remainder of the year. This would support a brief slowdown for oil-related equities. Long term, I think we could very well still reach $90-per-barrel prices. While the short-term outlook for oil is a bit more subdued, long term, the EIA still notes a significant discrepancy in available supply and surging demand. The EIA notes: This year, demand, both in the United States and globally, returned to 2019 levels faster than supply, reducing inventories and raising prices for crude oil and petroleum products. Crude oil, gasoline, and distillate prices were all higher on October 26, 2021, than they have been since February 2020... It will take quite a while for oil to reach its new equilibrium price, and if demand continues on its current pace, that equilibrium price will be higher than it is now, meaning another leg up in oil’s surge should further pad investors' pockets through Q1 2022. So with all this in mind, I have an update and guidance on our open Chevron Corp. (NYSE: CVX) November 2021 $110 call(s) that expire on November 12, 2021. Facebook Has Already Bet $50 Billion on ThisForget 5G — 2021’s Biggest Gains Will Be Here Mark Zuckerberg is no fool. So when he invests $50 billion in a brand-new technology, you'd better pay attention — especially when venture capitalists have also plowed $45 billion in it. Apple and Google have quietly added it to more than 1 billion smartphones. And this exclusive video reveals why this new tech breakthrough is about to revolutionize the computing world... and make a lot of people very rich. Early investors stand to make extraordinary gains of as much as 9,910%. But you have to hurry — this technology is about to go mainstream. [Click here now to get the inside story.]( Sell Your CVX Calls for Big Money — Or... At the risk of letting time decay work against us and with the potential for a brief cooldown in the oil trade, let’s be like Warren Buffett and be fearful when others are getting greedy. We’ve plundered the oil sector for major profits for the entire year — let’s not get too greedy. Action to Take: “Sell to close” your position in the Chevron Corp. (NYSE: CVX) November 12, 2021, $110 call(s) for approximately a 102% gain. [CVX Call Nov 12] Now, if you want to Press Your Luck (one of my favorite old-school game shows), start screaming “Big money, big money, no whammy, no whammy, stop!” and try to ride this call a little deeper in the money. Just make sure you cash out ASAP if the underlying CVX stock drops below $112. Just remember, when you sell this option, you must "sell to close." That being said, I think luck will be in your favor, and if you want to shoot for the stars on this trade, you may be able to squeeze out a bigger gain. But my advice is to lock in 102% today by selling to close this position. To your wealth, Sean McCloskey Editor, Energy and Capital [[follow basic]@TheRL_McCloskey on Twitter]( --------------------------------------------------------------- New Groundbreaking Tech Could Solve Global Energy Storage Issue We’re rapidly entering an era of super-sized global energy storage projects. In fact, an energy research firm named Wood Mackenzie reports that global energy storage capacity will jump 1,400% by 2030. But the truth is all of those new storage systems are lithium-ion batteries that run for only two–four hours on a charge. Grids require much more storage than batteries can provide. Luckily, I just discovered a tiny company with the solution. And the best part is that it’s NOT a battery. This brand-new tech I’m calling “Electric Glass” allows electricity to flow through it like water. It can conduct 27x more energy than the best lithium-ion batteries... Hold more than 100,000 charges — 25x more than Tesla’s batteries... And can even be fully charged in just five minutes without falling back on fossil fuels to cover the gap! Not only will “Electric Glass” soon be a vital component of every piece of technology... [Early investors in this small firm have a shot at being handed a HUGE windfall.]( Browse Our Archives [Trump’s SPAC Deal With Digital World Acquisition Corp. (NASDAQ: DWAC) Will Be a Giant Failure]( [Stop Wasting the Government's Money!]( [WATCH: Almost Dying on the Chesapeake Made Me a Better Trader]( [Solar Investments That Pay Double-Digit Dividends]( [The COVID Bottleneck Worth Billions for These Biotech Stocks]( --------------------------------------------------------------- This email was sent to {EMAIL}. 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