February 12, 2016  Trade Alert -  Black Gold  Portfolio

We will collect some premium and use some of our cash to buy 2 more Jan-18 8 calls to give us a little upside protection in case OPEC does manage to agree to limit production.  We will be left with short calls at the 7.5, 8, and 8.5 strikes in 3 different weekly expiration series:

 

BTC 5 USO Feb-16 8 calls (USO160219C8)

STO 5 USO Feb4-16 8 calls (USO160236C8) for a credit of $.35  (selling a calendar)

 

BTC 5 USO Feb-16 8 calls (USO160219C8)

STO 5 USO Mar1-16 8.5 calls (USO160304C8.5) for a credit of $.24  (selling a diagonal)

 

BTO 2 USO Jan-18 8 calls (USO180119C8) for $2.38

 

Be prepared to change this price limit by $.05 or more in order to get an execution. 

 
Happy trading.

 

Terry