Oil/StJ - It's reacting to /NG but Brent is up 3.22% for the day so I think it's a very wrong-way move on /CL.
That, of course, makes it a great time to adjust USO and:
- In the STP, we have 80 USO July $19 calls and I still like the time-frame so we can spend 0.80 to roll down to the $17 calls ($1.80) and we'll be happy there.
- Our $25KP is having trouble because all we have is USO July $19s (let's do the same roll) and the UCO July $9s, now 0.85 and we can spend $1 to roll down to the $6s - so let's do that.
- In the LTP, we have 50 USO 2017 $18 calls, now $2.80 and we can spend 0.80 to roll those down to the $16 calls, so let's do that.
SCO is the ultra-long oil and now makes for an interesting sale with the March $120 calls at $13. Selling them is net $133 and that would be about a 10% move down in oil, to $40. It's possible, but not likely and the July $155 calls are already $14, so figure that's the roll so let's sell 2 for $2,600 in the STP and see how it goes.
I also like the July $80 puts for $10.50 as a 10% rise in oil sends SCO down 20% or about $20 and the July $100 puts are $21 - up 100% on a 10% drop in oil is great leverage. Let's get 5 of those too for the STP!
