If you are watching the price of oil, you’ll see it is swinging all over the place. We doubled down on WLL this afternoon, buying at $19 and selling the OCtober 23, 19 calls for .80. That is just north of 4% if called away. Our Sensei feels this stock will continue to move 4-5% on a daily basis, however this is a good entry point. We continue with the magic sauce (covered calls).
As always consult your advisor before investing of any kind. Options are NOT suitable for all investors and people can and do lose money.
Tuesday morning at 9:55 a.m WLL is at $19.70.
Wednesday morning the stock was down to $18.35 and we were buying additional shares and selling calls, as well as selling some of the shares we bought in that range. The stock closed at $18.71 and we continue to believe that the daily price of OIL will provide opportunities to trade this stock and underlying options for gains.
Tuesday at 3:19 p.m we see WLL trading at 16.50, not it’s low for the day. WE await the earnings and either way we are betting on WLL for the long term. WLL was a target of an acquisition at a much higher price. Our belief is that OIL will go up soon or later and WLL is in the position to take advantage of that. WE are covering the downside with our CALL selling and looking for a bottom. Yes, we are slightly underwater but expect this to be a double digit winner in the next 6 months.
Wednesday morning 11:15 a.m. WLL trading at $17.57. Trading at noon on Monday the 2nd of November at $17.73.
Tuesday afternoon WLL trading at $18.91. It traded as high as $19.73 today. We believe WLL continues to be a winner.