Public trading strategy
Iran choking off major oil shipping route while global supplies drain — load up
Thesis
The threat of closed shipping lanes means millions of barrels of oil are struggling to reach the market. At the same time, experts warn that stored oil reserves are dangerously low. If the standoff isn't resolved quickly, the limited supply will push oil prices much higher. This sudden squeeze makes oil producers and the commodity itself a strong bet.
Strategy approach
Build a long momentum strategy on CL futures (or USO). Enter long when price crosses above the upper Bollinger Band on the Daily timeframe and the 14-day ATR is expanding (current ATR > 20-day average ATR). Exit when price closes below the 20-day SMA or after a maximum 15-day hold. Use a 5% trailing stop.