LOW RISK OPTIONS TRADE - SWING TRADE - GEOPOLITICAL TRADE
Updated
All comments and likes are very appreciated.
_________________________________________________________________________________________________________________
Today OPEC+ is going to make a decision to cut OIL production or not to cut. The decision mainly depends on Russia now and thus situation in the Oil market is very binary.
Russia, for its part, sees U.S. shale on the ropes, with financial stress deepening for small and medium-sized drillers. U.S. oil production growth has slowed dramatically in recent weeks and months, and if WTI lingers below $50 for a lengthy period of time, output will plateau and may even decline.
The best Low-Risk trade with High RRR would be right now to buy Futures Option for WTI.
For example, price of WTI at this moment 45.56 - thus you can buy a Naked Call at 50.00 just for 0.28-0.30 USD - very cheaply and thus low risk.
If OPEC+ cuts production - we can see Oil rally to 50, in which case you will be able to sell your call for around 1.00 -1.50 USD - thus your RRR will be 1:5.
I wouldn't recommend to just go Long on CFD or Futures without a hedge - as the move can be very quick and you can get slippage and a big loss on your position.
I and/or others I advise - Bought 50 Call @ 0.28
_________________________________________________________________________________________________________________
All comments and likes are very appreciated.
Best Regards,
I0_USD_of_Warren_Buffet
_________________________________________________________________________________________________________________
Today OPEC+ is going to make a decision to cut OIL production or not to cut. The decision mainly depends on Russia now and thus situation in the Oil market is very binary.
Russia, for its part, sees U.S. shale on the ropes, with financial stress deepening for small and medium-sized drillers. U.S. oil production growth has slowed dramatically in recent weeks and months, and if WTI lingers below $50 for a lengthy period of time, output will plateau and may even decline.
The best Low-Risk trade with High RRR would be right now to buy Futures Option for WTI.
For example, price of WTI at this moment 45.56 - thus you can buy a Naked Call at 50.00 just for 0.28-0.30 USD - very cheaply and thus low risk.
If OPEC+ cuts production - we can see Oil rally to 50, in which case you will be able to sell your call for around 1.00 -1.50 USD - thus your RRR will be 1:5.
I wouldn't recommend to just go Long on CFD or Futures without a hedge - as the move can be very quick and you can get slippage and a big loss on your position.
I and/or others I advise - Bought 50 Call @ 0.28
_________________________________________________________________________________________________________________
All comments and likes are very appreciated.
Best Regards,
I0_USD_of_Warren_Buffet
Note
Forgot to mention that if you want to execute this trade with Call Options - it's better to use Tuesday 17th of March expiry date. If you have a better Structure or Options positions in mind, please let me know down in comments.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.