Europe Winter Energy Crisis - Long $EPV

Winter is coming (figuratively and literally) for Western Europe and I'm not going to just watch it happen without trying to profit off of it. As you all may know, energy costs are soaring for Europeans as a result of poor infrastructure planning and a war in their Eastern backyard. This is layered on top of contractions in Eurozone Manufacturing PMI, accelerating inflation, the Euro / USD getting crushed.

I personally do not see any of these problems easing up between now and the end the year. In fact, I speculate that Putin is going to use these harsh times as a bargaining chip to help Russia in their war against Ukraine.

Therefore, I am short European stocks through calls on the ProShares UltraShort FTSE Europe ETF, ticker $Proshares Trust Ultrashort Ftse Europe(EPV.US)$. Because this is a contango ETF, it tends to always trend downwards. However, there are periods of time where it gaps up violently, the last time being the Covid Crash in March 2020. I'm anticipating that it's going to make another gap up this winter as a result of the turmoil in Western Europe.

From a TA perspective, it is consistently making higher highs and higher lows, while approaching an area where it could gap up to around the low $20s, which is my first target. However, I'm swinging for a homerun and I think if chaos ensues, this thing could fly into the mid $50s where it peaked during the Covid Crash or even take out the equal highs at around $75.

I've positioned myself over the last week with January 2023 calls with strikes of $15, $20, and $35. They have been doing pretty well, but I am expecting a pullback in the next week or so where I may load up on some more. $Chevron(CVX.US)$ $Exxon Mobil(XOM.US)$ $Camber Energy(CEI.US)$ $Imperial Petroleum(IMPP.US)$