MEMO II

To: Prof Lawrence A. Souza

From: Tom Bopp

Date: February 21, 2015

Re: Oil to rise by 20% over the next two months

We are tracking oil prices.  Based on our research, we forecast oil prices to rise 20% over the next two months based on the following three factors: hopeful signs in Europe as German economic news is promising. U.S. economy rallies in the Russell 2000 Index at a record high. Therefore, we recommend the following 26 trades.

Indices (2) ETFs (3) Stocks (3)Actions: Buy forwards Buy on margin Buy on margin

Buy futures Buy call options Buy call optionsWrite puts on futures Write put options Write put optionsBuy calls on futures

Trades: 8 9 9Tickers: S5UTIL, SPN USO, UNG, DBO TOT, SNP, XOM

Total Trades: (26)

European Central Bank’s quantitative easing policy is causing a fall in value to near U.S. dollar.   

There is a continuous fall in Russian ruble.

Countries throughout the world are incurring large deficits leading to inflation and higher interest rates.

We are tracking oil prices.  Based on our research, we forecast oil prices to rise 20% over the next two months based on the following three factors: Hopeful signs in Europe as German economic news is promising. U.S. economy is strong and rallies in the Russell 2000 Index at a record high. Therefore, we recommend the above 26 trades.