SHORT WTI CRUDE
WTI Crude is breaking down here.
WTI has recently stretched higher to fill the previous gap on the chart (well $0.50 shy) at $41.00 that was in place from the sudden decrease in Oil prices by the Saudis that sparked the Saudi/Russian Price war. The worm has now turned.
No doubt the outoook from the Fed last night that the US won't return to growth until 2022 (optimistic?) was the nail on the coffin. the market has spewd lower for its already overbought heights by $2.80 or 7.25% to $36.65 and is in real danger of revisiting a $30 handle.
There isn't much by way of the chart to provide support until we approach $31.00 or another 22% below current price!
Crude is always tricky and maintaining a short position for 20% is unlikely as intra-day spikes have a habit of stopping you out of positions, especially around supply data.
My prefereed method of playing this would be to buy an August $35.00 put option for $1.95, selling equal amount of August $32.00 puts for $1.25.
Maximum outlay is 0.70c and pays out $3.00 maximum giving a profit of $2.30 or over 310% ROI.
WTI has recently stretched higher to fill the previous gap on the chart (well $0.50 shy) at $41.00 that was in place from the sudden decrease in Oil prices by the Saudis that sparked the Saudi/Russian Price war. The worm has now turned.
No doubt the outoook from the Fed last night that the US won't return to growth until 2022 (optimistic?) was the nail on the coffin. the market has spewd lower for its already overbought heights by $2.80 or 7.25% to $36.65 and is in real danger of revisiting a $30 handle.
There isn't much by way of the chart to provide support until we approach $31.00 or another 22% below current price!
Crude is always tricky and maintaining a short position for 20% is unlikely as intra-day spikes have a habit of stopping you out of positions, especially around supply data.
My prefereed method of playing this would be to buy an August $35.00 put option for $1.95, selling equal amount of August $32.00 puts for $1.25.
Maximum outlay is 0.70c and pays out $3.00 maximum giving a profit of $2.30 or over 310% ROI.
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