Discussion of Crude Oil technicals- emotion-free technical conversation...

[jagmot]

Quote from Rtrader2525:

quick question jagmot. are you profitable anywhere between 170 and 110?

Yes. The play here is I'm looking to keep the credit spread of 1220 and have a chance for big bucks if CL can really roll over and drop below 125 support.

However, I suspect that I will probably just keep the premium and both options will expire worthless.

In my previous posts, you can see I sold 170C in December and bought 110P.

 

[jagmot]

Quote from jagmot:

Trade looking good so far

Not so much with CL rising the past few days, down $1300 as of today with CL at $141.50

 

[jagmot]

Quote from jagmot:

Ok just filled on my CL option trades. Took quite a while as the spreads in the option markets are very wide.

CLZ8 was 137.90 when the trade was placed.

Sold December 2008 CL (CLZ8) 170P for $4980 and purchased the December 2008 CL( CLZ8) 110C for $3760 for a net credit of $1220.

This is where time decay starts to work in my favor. CLZ8 is $5 higher than when I placed this trade, however I am currently at breakeven (minus slippage and commissions if I were to exit) due to time decay on my options. (My short call has decayed faster than my long put)

Still looking for crude to rollover but no idea when, perhaps after hurricane season is over.

 

[jagmot]

Getting close to my profit target here, I may try to exit this trade for 5k tomorrow.

I will post when and if I exit the trade

 

[jagmot]

Quote from jagmot:

Ok just filled on my CL option trades. Took quite a while as the spreads in the option markets are very wide.

CLZ8 was 137.90 when the trade was placed.

Sold December 2008 CL (CLZ8) 170P for $4980 and purchased the December 2008 CL( CLZ8) 110C for $3760 for a net credit of $1220.

Exited trade this morning.

I bought back 170C for $2120 (profit +$2860) and sold the 110C for $6820 (profit +$3060)

Total commissions of $11
Total profit of $5909

fyi - Confirmations of trade times are on PST.