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How to Sell Crude Oil in the Middle of a War, With Defined Risk.

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ticker lesson

Breakdown

0:00CLV6· ticker

CLV6 — short iron condor, $8163 range

  • Buy 66 put, sell 67 put
  • Buy 95 call, sell 94 call
  • Defined risk range trade
  • 67 put below swing lows, 94 call above recent highs
1:46CLV6· ticker

CLV6 — condor risk $700 max, $300 credit

  • $1 move = $1,000, 1-cent tick = $10
  • Spread width $1 per side
  • Max risk $700 minus credit
  • Break evens 6670/9430
3:30U6· ticker

U6 — front month less sensitive to supply shocks

  • V6 less sensitive to supply disruptions
  • 67 put sits below market, 94 call above highs
  • Absorb volatility from jawbon, Iran tensions
3:31lesson

Lesson — manage condor with 48-day expiry, 50% profit take

  • Hold 48-day expiry, 3-4 weeks
  • Take 50% profit at 15 decay
  • Avoid front month contracts
  • Midpoint 67-94 = optimal range

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