I would of thought increased market share was a big positive for XLE Energy Sector but they sure are not pricing it in at all. I sure would not want to bet against the energy trend into earnings in the morning. I actually think HAL should do better than last quarter. I can't wait to see the results. My gut says XLE stocks catch a bid tomorrow.
We possibly forming a longer term bottom in XLE (ERX is the 3x ETF for XLE). Yesterday I wasn't able to post the chart I just posted below the last oil chart: I'm going to enter into ERX at the close. XLE and ERX likes to bottom with a beartrap. When RSI leaves oversold territory it's usually a good sign we are bottoming. In this case we might be printing a ...
Looking for a neutral play on XLE (I think we are starting to have 2 way action). IVR is not that high at 26, so doing less contracts (I don't have any other position right now on XLE). I sold the 69 Straddle for $2.78. Our break evens are just above the expected move, and this is close to a 54% probability trade.
Trade Setup: -1 XLE Apr 21 65/69.5/69.5/74 Iron Fly @ $2.33 DTE: 30 Max Win: $233 Max Loss: $217 Breakevens: $67.17 & $71.83 Trade Management: 25% profit; Full loser, possibly roll the ITM side out in time if my bias is the same near expiration. Green is profit zone; vertical black bar is expiration.