A new spread trade in oil ETF USO has been made. A May 3rd $13.00 call and put were purchased. The cost of the trade was $0.74 before fees and commissions. The goal of the trade is $2.00. Stop loss pricing has been instituted. Some reasons for the trade are below.
- Increased volatility in the oil market
- production cuts continue to be in the market
- geopolitical actions taking place in oil sensitive countries like Libya
- economic slowdown continues to be echoed
- time for earnings
We also have a call trade on $SQQQ. The blog on that trade can be found here.
**
This blog is used for informational purposes only. It should not be
used as a recommendation to buy or sell any security. Do your own due
diligence before trading or investing. If you would like up to the
moment communication on KDK Options trades, email at
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