With oil in a strong downtrend I am taking a contrarian stance with a bullish call debit spread in Marathon. IVR is terribly low and it is not the Tasty Trade way of selling premium. MRO was down another 3% today and IVR is 10.4% when I purchased the 12/15 call DEBIT spread all the way out til Jan. for $1.18 I looked at other oil companies BP, RDS, COP but avoided them due to foreign complications such as Brexit exit and such. XOP and OIH had higher IVR which makes buying options less attractive. The overall market is way overdue for a sell off, so I stayed in smaller UL and will add to this position up to two more times. That is also why I went so far out in time. I am thinking Saudi Arabia will look to manipulate the markets in order to spin off Aramco and a possibility Venezuela could have some disruption of its oil flow with all the chaos. I am already long and wrong in PXD. This stock has gone lower in the not so distant past so there is some risk but my overall portfolio is short so this may balance beta weighted deltas.
Comment:
Closed this trade out today for a scratch.....don't like holding + theta positions and on an earnings bump decided to let this go. Also may have to defend another position that is getting smoked (PXD)