http://www.reuters.com/article/us-global-oil-idUSKCN11S01T
https://www.zacks.com/stock/news/226593/oil-in-bear-territory-short-oil-amp-energy-etfs
http://stockcharts.com/h-sc/ui?s=USO
Trade:
With USO at 10.19
April 12.5/14.5 bear call spread for a net credit of at least $22
(bid/ask = $16/$35)
Yield = 22/178 = 12.4% in 209 days or 21.6% annualized
Prob = 78%
Expectation = .78(22) - .1(178) - .12(89) = 17.2 - 17.8 - 10.7 = -11.3
Price.............. Profit / Loss........... ROM %
7.00..................... 22.00............... 12.40%
9.00..................... 22.00............... 12.40%
12.00................... 22.00............... 12.40%
12.50................... 22.00............... 12.40%
12.72..................... 0.00................. 0.00%
13.89................ (117.00)............. -58.50%
14.00................ (178.00)............. -87.60%
16.00................ (178.00)............. -87.60%
18.00................ (178.00)............. -87.60%
I'll see if I can get $25 before I settle for $22...below $22 no deal.
https://www.zacks.com/stock/news/226593/oil-in-bear-territory-short-oil-amp-energy-etfs
http://stockcharts.com/h-sc/ui?s=USO
Trade:
With USO at 10.19
April 12.5/14.5 bear call spread for a net credit of at least $22
(bid/ask = $16/$35)
Yield = 22/178 = 12.4% in 209 days or 21.6% annualized
Prob = 78%
Expectation = .78(22) - .1(178) - .12(89) = 17.2 - 17.8 - 10.7 = -11.3
Price.............. Profit / Loss........... ROM %
7.00..................... 22.00............... 12.40%
9.00..................... 22.00............... 12.40%
12.00................... 22.00............... 12.40%
12.50................... 22.00............... 12.40%
12.72..................... 0.00................. 0.00%
13.89................ (117.00)............. -58.50%
14.00................ (178.00)............. -87.60%
16.00................ (178.00)............. -87.60%
18.00................ (178.00)............. -87.60%
I'll see if I can get $25 before I settle for $22...below $22 no deal.