Market Overview

Wednesday Wheeee! Oil $95.50 and Falling



We love it when a plan comes together.  Oil just dropped a full $2,000 per contract below our $97.50 shorting target on the /CL Futures and the SCO trade we were kind enough to share for free in our morning post of January 30th (the Feb $36/37 bull call spread at .40) now has an excellent chance of finishing up the full 150% in 16 days.  Actually, that same morning I discussed shorting oil as it popped up to $98 but, I was not specific about which USO puts we were using for our virtual $25,000 Portfolios in Member Chat and, unfortunately, our next free trade giveaway isn't until April as our Premium Chat goes back on wait-list shortly (what do you expect with these kinds of trade ideas?).  

Speaking of good trade ideas, I am still tweeting a few to the cheap seats and we hit one out of the park yesterday when I called for closing the AAPL weekly $455 calls at $6 that we had taken (also noted on Twitter) at $1.55 the day before.  That's up 287% in less than 24 hours – that's even better than the oil trade!

Our earnings plays for today (also tweeted as we wind down our free picks month) were from Monday's Member Chat, where we already had 10 of the CMG Jan $235/315 bull call spreads in our virtual Income Portfolio and we sold 10 short March $320 calls for $9 ahead of earnings, assuming high food costs and high expectations would keep us safely below the falling 200 dma ($325) on earnings (and we already have a massive, but unrealized, profit on our net $31.08 spread – which makes 157% in January if we hold $315).  That one is perfect as CMG is down just slightly on earnings so we'll hopefully collect our bonus $9 (29% of the basis in 3 days) and we're still on track for the full 157% at the end of the year.

EXPE was a new spread we added to our aggressive $25,000 Portfolio (we have two flavors of virtual $25,000 set-ups, one for high-margin and one for normal margins) with the sale of 4 March $65 calls for $4 ($1,600 credit) and the purchase of 6 July $64.48/69.48 bull call spreads at $2 ($1,200 debit) for a net credit of $400 so, even if EXPE fell,…
continue reading

Would you like to read up-to-date articles on the day they are posted? Subscribe by clicking here.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Commodities Markets Trading Ideas


Related Articles

View Comments and Join the Discussion!

Partner Center