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...
WLL had a retest gap today. Looking to buy the dip as it retests the gap. best part about the trade is that the stock will have to break through all ema's except for the 200 in order to hit the stop if triggered.
WLL looks very strong here, rsi turning up and we look like we are breaking out of this wedge. Should see big moves in next few months. Many other energy stocks are setting up for breakouts. Sector will help push upward through resistance.
: a bit of a wishful break-out setup with earnings at 2 weeks out
+ trend intensity turned bullish
+ inside bar
+ break out bars with high volume took place last week; prices have since gone sideway
+ 5 ema is approaching the low of today's bar; but still a bit too far for my liking
- Upper shadow on today's bar
+ volume has been lower than average
- earnings in 2 weeks
Did this at open, after which the underlying tanked ... . Heck, what hasn't tanked in today's market. In any event, continuing to work this sub $10 high IV underlying here.
Bought 100 Shares at 7.48
Sold Oct 21st 8 call
Whole Package: 6.94 debit
Max Profit: $106
Bought shares at 7.50; sold the Sept 30th 8 call; filled for a 6.93 db; max profit $107 (if called away at 8) (15.4% ROC).
Not to jinx it, but it's highly likely that I will be unhappy with one or more of these little fellas that I put on today ... .
Here's my "short list" for covered call candidates for next week generated by looking at Barcharts.com high volatility stock options list and the Dough grid:
WLL buy shares at 7.66; sell Sept 16th 8 call; 7.10 debit; $90 max profit (12.7% ROC)
CC buy shares at 11.45; sell Sept 16th 12 call; 10.78 debit; $122 max profit (10.6% ROC)
LC buy shares at 5.40; sell Oct...