TRADE IDEA: XOP SEPT 21ST/JUNE 21ST 41/45 COVERED SHORT COMBO
Max Loss/Buying Power Effect: Undefined/~$1234
Max Profit: $514/contract (realized on finish below the short put)
Break Evens: 46.14/no downside risk
Notes: XOP at long-term horizontal resistance with oil at 74.21/ bbl ./long-term highs. Work as you would a covered put, rolling out the short put on significant decrease in value, to maintain delta, and/or to defend the combo. Would look to take profit and/or manage at 20% of the buying power effect ($247 profit), although taking profit at 10% of the debit paid wouldn't be bad either ... .