Granted the Delta is around 29, and break even is $12.87; one cal option leg down the premium is $.68, with a break even at $11.89. I'd rather risk the $.30+ as risk aversion.
Fundamentals: Rumblings from OPEC to start limiting supply and PBR's opening up a new offshore drilling platform makes one take this one seriously as a bread winner. If we get a signal from Brent Crude on Monday's opening bell to go , then PBR is favored because it' has been amassing shares for two weeks. The unusually high on November 21st is typically signals a seven day trend either way.
Stop Loss is set below 34 . PBR is in play as I bought shares Friday morning, going into the weekend with a profitable buffer. I'm not relying on IV ranking as my Fuzzy Logic Greeks show it's skewed.
Considering we're entering the last chance 12th round option cycle of 2014, Madison Square goes wild on New Year's Eve, it time to focus on lucrative paying sectors that are oversold. Oil is at the top of my list.
Sentiment: The underlying motive for oil to reverse its down trend is the Saudi's ATMs are running out of gold coins.