By: Scott Redler
While we never try to pick bottoms, I feel its worth the risk to take a shot at BP in this area. I think we saw some capitulation today, and I bought BP at 48.60. Since I haven’t been caught in the downdraft I feel more comfortable looking to take advantage of this adversity. I will trade it long vs. today’s low.
If you’re worried about headline risk, which is totally reasonable, buy the 48 or 49 May calls so you have defined risk. We could see the bounce back to the 53-54 area.
