Key insights
- The author is considering increasing their USOY position based on the expectation that a US-Iran "memorandum of understanding" will cause oil prices to drop. They plan to buy the dip and sell when prices recover, a strategy that has worked in the past. However, the sustainability of this strategy is questionable, and further downside is possible.
I have some USOY on the Roth 401K side of my portfolio. With the recent "memorandum of understanding" between the US and Iran announced yesterday/this morning, I expect oil prices will drop, so I'm thinking of buying more.
I've had some success with this approach since the Strait of Hormuz was shut down: wait for the announcement of a "deal," buy USOY after it drops, then wait for oil prices to recover and sell. Just curious about people's thoughts on this strategy, as I'm wondering if I may be going to the well one too many times.
Thoughts?