Stock price when the opinion was issued
He likes the idea of adding on weakness, that's what he's been doing. He uses a lot of optionality in his portfolios. So he's writing puts in the energy sector to acquire companies; if they don't go to those prices, he just earns the income. He's perfectly happy with a strategy like that at this point.
If we get a harder economic landing at some point, then oil has some more downside. The US outlook for crude oil demand was just downgraded. We're in a trading range, and he's accumulating into weakness.
An ETF of energy stocks and “covered calls” are written on all the positions. Understand what covered calls are all about. Hypothetically you have stock trading at $28 and you write a covered call option for $30 which will bring in $0.40. The cost is now $27.60 but if the price now goes to $30, then you are obligated to sell. If the stock goes to $35, $40, too bad, you have to sell at $30. Covered calls work wonderful in ranging markets. If you think things are going higher, you don’t want to do covered calls.