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Why It Might Finally Be Time to Sell Upside in Crude Oil

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ticker lesson

Breakdown

0:00CLZ6· ticker

Crude oil — short call spread, $97 98 strike

  • Short call spread with 53 days to expiration
  • Selling November 17th 97 98
  • Collecting 24 cents in credit
  • Geopolitical risk repricing
  • Iran ceasefire deal possibility
1:49WTI· ticker

WTI crude oil — contract details

  • 1,000 barrels per standard sale contract
  • $1 move = $1,000 per contract
  • Minimum tick 1 cent per barrel
  • $95 = $95,000 notional exposure
  • Retail trader exposure substantial
3:43CLZ6· ticker

CLZ6 — short call spread risk/reward

  • Selling 97 call, buying back 98
  • Risk $760, credit 24 cents
  • Break even at 9724
  • Max loss at 98
  • Take profit at 50%

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