Green Energy vs. Oil (Money on the Move)

It is no surprise that when the COVID-19 vaccine was released in late November that REIT’s and Oil Stocks boomed. These stocks will significantly increase again once the vaccine is federally approved. I genuinely believe that the vaccine will be approved by the FDA by the end of this week.

On the contrary we have also seen a great pullback on green energy securities in the last few weeks as oil has gained momentum. So here is the proposal.

1. Get long short dated call options on oil stocks. I personally bought $92C on Chevron today. When the news breaks of a vaccine approved in the US, there will be a very stark change in supply and demand leading to a temporary increase in oil prices.
2. In a few weeks (after Joe Biden takes office), its time to get long green dated securities again. Joe has promised not to end fracking and allow the oil cowboys to go crazy. But, we are most definitely going to see some sort of subsidy or free money being allocated in the market. The bet you want to make in this position is going to be a LEAP, or long-term expiration anticipation security. I believe the hottest segments in the green energy business over 2020 will be residential focused.