Trading Syria

Discussion in 'Economics' started by politicstrader, Jul 24, 2012.

  1. I am primarily a macro trader, with a preference for politics.

    I am paying particularly attention to Syria which should prove profitable to trade.

    Of course, Syria has threatened to use chemical and biological weapons on us if we attack. Obviously, if Syria commits such an act of terrorism, we will probably nuke Syria.

    So, what is tradable from this?

    My view is oil. Oil prices are likely to rise, so the tradable idea is to buy long oil call options. Options are not oil, per se. Options are known as derivatives, since they are based on the underlying price. The great thing about options is that they are a fraction of the underlying price so the returns are magnified.

    Slightly out of the money long call options are my trade. I have purchased $30,000 worth, in anticipation of the political situation in Syria getting worse.