The Media’s Lying to You — Oil’s About to Gush Higher

The mainstream media… politicians… economists… they all want to convince you the conflict with Iran is over…

And that oil prices are headed back lower…

But they’re lying to you.

The markets are telling a different story.

And I’m not talking about the major market indices hitting highs as we speak.

I’m talking about the options market — my way to tell what’s actually happening behind the scenes.

Just a few months ago, I spotted some huge moves and used my options expertise to call the end of the trade war…

And I was right!

Now it’s happening again, this time someone “in the know” is moving against mainstream media…

Making a big bet that oil’s gush higher is coming… in just over one month.

So today I’m asking you to ignore what political talking heads on T.V. are saying…

Because I’m about to tell you the REAL story and how you can follow this big trader to profits while other investors remain in the dark.

Prices Don’t Lie

Last week, when America initiated the airstrike against Iran, oil prices spiked.

Though the United States has become a leader in oil production, Iran still has control over one of the most important waterways for global oil supply — the Strait of Hormuz.

Iran has threatened in the past to close this route… which would squeeze supply and naturally send oil prices higher.

So after Iran’s retaliation this week was perceived as relatively muted, the markets tried to move past the clash and hope for the best.

And last Friday’s oil rally came to a swift end.

But with over 25 years as a floor trader under my belt, I’ve learned to focus on price, not politics.

What you see on the news is often not the full picture of what’s going on.

So even though they want us to believe that the U.S.-Iran conflict is finished…

And the big catalyst the oil market anticipated isn’t coming.

We’re cutting through the noise!

My indicator picked up on unusual options activity — someone with information is making huge buys in key oil stocks.

And when REAL money moves like this, I pay attention.

It’s the opposite of what politicians are saying… oil prices will go up quickly if the U.S.-Iran conflict worsens, though right now, things SEEM calm.

But this buyer is betting the clash between the two countries isn’t quite over…

Three Big Bets 

Trump said on Wednesday the situation with Iran was pretty much done with and that America just wants peace.

It appears one trader doesn’t believe that’s the end of it.

Enough so that they put $2.8 MILLION on a key oil stock going higher.

The wager was put on Schlumberger Ltd. (SLB) — a multibillion-dollar company that provides the technology to drill, produce and process oil.

Because it is one of the first links in the supply chain, its performance is more tightly tied to the price of oil than others in this industry.

And this trader is confident that SLB will reach $42.50 (a 9% move from its current price) by February 21… giving them just over a month to be right.

Being a huge oil company, it’s considerably harder for Schlumberger’s stock to make such a big short-term move — which shows some pretty deep conviction.

And this SLB bet was just one of three huge new positions in multibillion-dollar oil companies made on Friday…

Another was in Halliburton Co. (HAL)… a $896,400 buy.

Like SLB, HAL provides the products needed for oil drillers, which means it often moves in sync with the price of oil.

Also like SLB, the buyer gave the bet a short timeline to payoff — February 21.

The last big trade was in ConocoPhillips Co. (COP), priced in at $356,025.

This company is even closer to the supply chain than SLB and HAL… it actually participates in the exploration and production of oil.

Again, the investor making these moves gave COP just until February 21 to turn out a profit.

With all three options trades expiring in just a month and now that oil is down again, this investor would be sitting on a massive loss.

But despite what the media is telling you, oil isn’t going to stay down for long.

Oil will go back up… the smart money pretty much just guaranteed it.

Not only that, it’s going to increase BEFORE February 21.

And when oil prices spike, our mystery investor will get to cash out for a massive profit.

So now that the energy market has lost some steam and oil stocks are still cheap…

Consider picking up some oil options of your own and follow the smart money all the way to YOUR payday!

Yours for Weekly Profits,

Alan Knuckman

Alan Knuckman
Floor Trader, The Daily Edge
EdgeFeedback@StPaulResearch.com

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Alan Knuckman

Alan hails from the home of options trading in Chicago, where he began working as a clerk on the floor of the Chicago Board of Trade (CBOT). Beginning with his days on the floor, Alan’s worked with all aspects of the options markets for the past 25+ years.

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