Neutral to Bullish Ratio inside the corrective structure of Oil

26. Sept. 2016

Oil is in the middle of a Correction. I still expect it to go down lower, but until then we can still trade it. My favorite strategy in this cases is to use a In the money Ratio Spread using December options (Buying one $51.5 Put and selling 2 $47 puts for a total credit). If it breaks to the upside, there is no risk, and if it goes down then I will short the Future contract. Our break even is at $42.22 so as long as it stays over it we are making money. Maximum profit is $4,780 per contract and I will look to close it early to improve the probabilities.

28. Sept. 2016

Anmerkung

Added a Short on the Futures at 45.5 after news to protect the trade to the downside.

28. Sept. 2016

Anmerkung

Ok, so the news tagged our entry to short and then it reversed. I Closed the Future contract with a loss when we broke the trend line and sold 2 Puts at 44.5 to get what I lost back.

30. Sept. 2016

Trade ist aktiv

Trade Enhancement. Sold the $52 Calls making now a strangle between our 44.50 Puts. I think we are about to make a correction and even go higher, now our break evens are $52.57 and $42.82 on the down side.