WTI is the highest it's been in a very long time ... . You can naturally play /CL directly or use USO Here, I would buy 2 x the 72's in July and sell the 62, with the result being a break even where the stock is currently trading. I would go longer-dated in this particular case to allow shale to get back in the game, U.S. production to increase somewhat toward pre-pandemic levels, and stockpiles to build.
Metrics:
Max Loss: 19.91 ($1991) Max Profit: 62.09 ($6209) (That assumes that the underlying could go to zero, which it naturally won't) Break Even: 62.05 relative to today's closing price of 61.68 Delta/Theta: -88.19/-1.57
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