1. Buy Natural Gas and Sell Crude
“The ratio is a little bit dicey depending on volatility—it’s somewhere between 3 to 4 contracts of crude to natural gas but we're not sure exactly where,” he said. “It's a very risky trade but the beauty is that if you get it right and if prices go back to a 6 to 10 times multiple, which is the historical norm, you can retire to the Bahamas!”
2. Inside Sector Swap
“Whatever piece of your portfolio that’s engaged for your energy, I suggest a sector swap. Get out of the integrated oil companies, and buy natural gas companies” he said. (Read below for his buy/sell recommendations.)
Dicker owns shares of Chesapeake Energy and Chevron.