Monday, February 22, 2016

$USO to the Downside

Been interested in shorting oil for awhile... well maybe since 2 weeks ago. I finally got into some March 16 $8.00 puts for .25. The plan is to play the volatility on today's news and the conferences taking place this week. I don't think OPEC is going to get everyone to agree on freezing output.

I don't plan to hold the put options for longer than 1-2 weeks and I'm thinking $USO will hit $8.00 and maybe even lower.

Here goes a link to crude oil futures.

Update 24Feb16

So, I woke up this morning and read an article stating that oil reserves were going to be put out today and I completely forgot when I got to work to set a limit sell order. I could've ended with a 78% profit, but had to settle for a 17% profit.

Note to self, set limit orders and don't forget about news events. Did an okay job on this trade overall though.

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