USL Long, option trade with big stop buffer

2020年4月24日

USL Long, option trade with big stop buffer

Try to accumulate oil long position at bottom in next two months.

Stock Entry: Below 10.4
Stop: 9.6 (down to new low)
Target1: 14.2; risk/reward=1:3
Target2: 19; risk/reward=1:18

In option trade, I bought Oct Call Butterfly C11/16/21 (Delta 0.15), limit 0.9;
Sell P7 (Delta -0.18) Limit 0.9;
Total simulate long 33 shares stock for free.
None stop, Willing to be assigned at $7, if there is another 33% down from current price.

This is a trading school homework. I need 6 months to practice trading plan.
If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.

Important Note:
Yesterday, I created USO trading plan. I added following comment:
USO long term target is "0". It is only good for short term trading. If it sounds strange, please google the reason.

Since I knew that USO is not good for long term up direction, I will Long USL to long Oil, and short USO to short Oil. 4/28/2020, USO shares will be merged from 8 to 1.
The only problem in USL is its options are not actively traded as USO. I have to pay $0.1 more than the mid price to get order filled.

2020年4月24日

交易开始

In option trade, I bought Oct Call Butterfly C11/16/21 (Delta 0.15), limit 0.9;
Sell P7 (Delta -0.18) Limit 0.9;
Total simulate long 33 shares stock for free.
None stop, Willing to be assigned at $7, if there is another 33% down from current price.

2020年4月27日

交易开始

Sell Oct P5 Limit 0.55
Willing to be assigned, adding position at bottom.

2020年4月30日

交易开始

BuyToClose P5 limit 0.34; P7 limit 0.7; Remove the down side risk.
This is Small winner.
If oil goes down, sell put again.

2020年6月9日

交易结束：到达目标

This is a winner