Short term idea on USOIL(1-2 DAYS) buying put options
Actualizado
This was a great week for the US economy and the oil market. The OPEC+ agreement, the surprise numbers in employment in the US and the flattening of the Covid-19 curve of infected people really gave spectacular returns to bulls.
Fundamentals: The 40$ price is very crucial for the producers as it is the breakeven point of Shale producers. Above that new oil rigs should open up.
TA: Bulls should take profits by monday, as we are in overbought territory (RSI>70). Plus we are close to a bearish divergence.
Time horizon: 1 day ideally as we are going against the trend.
I recommend the use of options because of the tensions between US and China. If escalated, we may see a significant gap upwards. Put options have an upfront premium payment and we know the risk beforehand.
Disclaimer: 1) Always do your own analysis before trading.
2) If you are not familiar with options DO NOT follow this idea.
Fundamentals: The 40$ price is very crucial for the producers as it is the breakeven point of Shale producers. Above that new oil rigs should open up.
TA: Bulls should take profits by monday, as we are in overbought territory (RSI>70). Plus we are close to a bearish divergence.
Time horizon: 1 day ideally as we are going against the trend.
I recommend the use of options because of the tensions between US and China. If escalated, we may see a significant gap upwards. Put options have an upfront premium payment and we know the risk beforehand.
Disclaimer: 1) Always do your own analysis before trading.
2) If you are not familiar with options DO NOT follow this idea.
Operación cerrada manualmente
Close @38.37 manually with a small profit. I expect a major bull market this summer.
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