80% probability trade on Oil with Future Options

7 Eki 2016

Last 2 weeks, oil have been climbing up and now we are at the $50 handle which can be an interesting price. I believe it can still go higher, but its already pretty far from the moving average and will soon start to give us a correction down. Having already multiple positions in oil, I will sell a Call ratio spread (Buying 1 $51 call and Selling 2 $53.5 Calls to finance it) This way if it continue to go up slowly we can get to our max profit at $53.5 with our break even at $56.13 with no risk to the downside. This is a high probability trade with a 81% chance to make us money. The Green area is my poor attempt to show the risk graph and the red rectangle is where we would be losing money.

15 Kas 2016

İşlem kapandı: hedefe ulaştı

Closed all my trades on oil in this cycle for a profit.