Trading Edge 2020 Portfolio -Trade #9 - WES - Oil Lotto Ticket
Updated
Ticker: WES
Position:
~ $4.00 Strike Calls
~ May 15th Expiry
~ Cost = $0.40/ contract (at time of writing)
~ Delta = 0.56
~ Run 5x contracts = $200 total outlay for the trade (subject to change)
Profit Targets/ Exit:
~ Due to the low cost of the trade, i will likely not run a stop on this position, but i have outlined a stop at the $2.50 level
~ Initial Target = $5.30 (325% gain)
~ Secondary Target = $8.00 (1000% gain)
~ Third Target = $11.00 (1750% gain) *predicated on a gap fill*
~ I will be rolling at each profit target also, in order to take money off the table as it appears
Rationale:
~ Although i believe that there is more downside for the broader market to come, it is also a very real possibility that the market is not ready to roll back over just yet, with that in mind, i think having some strategic long positions is prudent
~ The asymmetry nature of this trade is highly desirable, as even a move to the initial target yields very high rewards, albeit the risk is the total premium paid, hence the small position size
-TradingEdge
Position:
~ $4.00 Strike Calls
~ May 15th Expiry
~ Cost = $0.40/ contract (at time of writing)
~ Delta = 0.56
~ Run 5x contracts = $200 total outlay for the trade (subject to change)
Profit Targets/ Exit:
~ Due to the low cost of the trade, i will likely not run a stop on this position, but i have outlined a stop at the $2.50 level
~ Initial Target = $5.30 (325% gain)
~ Secondary Target = $8.00 (1000% gain)
~ Third Target = $11.00 (1750% gain) *predicated on a gap fill*
~ I will be rolling at each profit target also, in order to take money off the table as it appears
Rationale:
~ Although i believe that there is more downside for the broader market to come, it is also a very real possibility that the market is not ready to roll back over just yet, with that in mind, i think having some strategic long positions is prudent
~ The asymmetry nature of this trade is highly desirable, as even a move to the initial target yields very high rewards, albeit the risk is the total premium paid, hence the small position size
-TradingEdge
Note
Entered $4.00 strike Calls at $0.55/ contractsNote
Entry price and Delta have been updated in the spreadsheetTrade closed: target reached
Exited position for $1.50/ contract Will keep an eye on WES for another potential entry
* You can also roll the contract if you prefer
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