OPEC finally agreed to cut production in order to help support the price of oil. What happens now though? Here's the the impact the decision will have on energy ETFs.
Investors in iShares Dow Jones US Oil & Gas Exploration & Production Index Fund saw new options become available this week, for the February 2015 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the IEO options chain for the new February 2015 contracts and identified one put and one call contract of particular interest.
In trading on Monday, shares of the iShares US Oil & Gas Exploration & Production ETF entered into oversold territory, changing hands as low as $67.90 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100.