A Hormuz Meltdown Could Trigger A Massive Oil Spike; Here Is My Plan After The Panic

Datalam Trading362 FollowersFollow5ShareSavePlay(9min)CommentsSummaryIssue a Sell rating on oil, expecting a short-term spike but a medium-term decline if Hormuz transit normalizes.Logistics disruptions outweigh EIA's bearish fundamentals; 20% of global oil flows through the Strait of Hormuz.OPEC+ can buffer panic, but cannot fully replace Hormuz flows; increased production remains limited vs. potential supply shock.If transit paralysis exceeds 10 days, oil above $100/barrel becomes justified, negating the medium-term decline thesis.wildpixel/iStock via Getty Images Oil's Hormuz Spike May Be Real, But Its Staying Power Looks Far Less Certain We are all certainly well aware of the current situation in the Middle East. It is a very disturbing situation, but I still takeThis article was written byDatalam Trading362 FollowersFollowHi, I'm Martin, I focus on maintaining a delta neutral portfolio. I want to be long/short at the same time and benefit from market volatility. I specialize in using options through which I enter and exit trades. I look for market opportunities primarily in small companies, and my search takes me into the waters of mid-sized companies as well.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in CO1:COM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.