I am adding to my bullish assumption in oil again today. I sold the 5 puts in Whiting Petroleum for .39 and 30 days til expiration with an implied volatility rank of 59% this adds a theta component to my call debit spread in Marathon. With Saudi limiting shipments to the U.S. (since we keep too good track of inventory) and the summer season of driving upon us....I would rather buy this than the sky high indicies. I will roll and defend (prob not with short call spreads since premium will be too low in this name) if the stock continues to drop but I am prepared to be the proud owner of Whiting for 5 bucks a share.
Comment:
Closed this trade today for almost 50%........22 cents to close. Had some in Roth and some in Reg-T. May just be a small bounce in a continuing downtrend but will happily take it since I still have more bullish oil exposure. Will wait to see what happens and try to make good decisions based on the opportunities the market presents.