Oh My OIL, Will It ever GO uP?

Ok, here is our view on the present scenario.  WE are buying WLL with regularity.  We are also selling at the money calls immediately after the purchase.  For example we bought some today at 16.10 and sold the November 20, 16’s for $1.00.  This is a 5%+ return if called away.   We have expressed our feelings that WLL is going to survive and prosper when OIL goes up.  The turmoil in the world should lead to some instability in the price of OIL and when it does we will take advantage of it.  If you are not called away we look to sell calls above our cost basis of $15.00 after the current calls expire.  The key here is patience and consistent investment to dollar cost average when the situation arises.

As always consult your advisor before investing of any kind. Options are NOT suitable for all investors and people can and do lose money.

WLL closes at $17.41. WE are therefore making money, another winner for our Sensei. Wednesday, 11/18/2015 at 4:17 p.m

Thursday closed at $17.01, went as low as $16.22, we bought some at $16.25 and $16.28 and sold them during the day, as well as bought some in that range and sold the November 20, 16 calls.  We are about making a profit. The stock would have to be in the $15 range for us to be flat. 

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *