Options Wonderland

[Market Technician]

I have a gigantic ITM put position in USO, and unless the dollar falls off a cliff, light sweet crude is headed to $40. Shipping rates are at their lowest in years, however companies can't even get financing to take advantage of the low shipping rates because of the credit crisis, so in turn you get stockpiles of commodities. OPEC no longer has the power or influence it once had. It will not be able to stop this. In fact, if I remember correctly, it was the Fed that stepped in last time we were in a deflationary period to devalue the dollar. Let me also say that it is much more difficult to get out of a deflationary period than it is to overcome inflation.