USL Long, option trade with big stop buffer

USL Long, option trade with big stop buffer

Try to accumulate oil long position at bottom in next two months.

Stock Entry: Below 10.4
Stop: 9.6 (down to new low)
Target1: 14.2; risk/reward=1:3
Target2: 19; risk/reward=1:18

In option trade, I bought Oct Call Butterfly C11/16/21 (Delta 0.15), limit 0.9;
Sell P7 (Delta -0.18) Limit 0.9;
Total simulate long 33 shares stock for free.
None stop, Willing to be assigned at $7, if there is another 33% down from current price.

This is a trading school homework. I need 6 months to practice trading plan.
If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.

Important Note:
Yesterday, I created USO trading plan. I added following comment:
USO long term target is "0". It is only good for short term trading. If it sounds strange, please google the reason.

Since I knew that USO is not good for long term up direction, I will Long USL to long Oil, and short USO to short Oil. 4/28/2020, USO shares will be merged from 8 to 1.
The only problem in USL is its options are not actively traded as USO. I have to pay $0.1 more than the mid price to get order filled.

Trade active:

In option trade, I bought Oct Call Butterfly C11/16/21 (Delta 0.15), limit 0.9;
Sell P7 (Delta -0.18) Limit 0.9;
Total simulate long 33 shares stock for free.
None stop, Willing to be assigned at $7, if there is another 33% down from current price.

Trade active:

Sell Oct P5 Limit 0.55
Willing to be assigned, adding position at bottom.

Trade active:

BuyToClose P5 limit 0.34; P7 limit 0.7; Remove the down side risk.
This is Small winner.
If oil goes down, sell put again.

Trade closed: target reached:

This is a winner