May Crude Oil Futures and Options Strategy

Peter Ori Energy

Following the bullish trend in Crude Oil the May futures contract last at 59.34 can rally to potentially 62.00 and potentially 66.00 in my opinion.

Buying futures at this level, 59.34 and risking $1000 of quantifiable risk plus fees and associated costs per transaction to enter the trade, risk is a loss of premium and fees, this puts the stop at 58.34, targeting 62.00 would be a profit of $2660.00

You can also use MINI Crude oil futures with the same levels, the stop at 58.34 = $500.00 of quantifiable risk plus fees and associated costs per transaction to enter the trade, risk is a loss of premium and fees and targeting 62.00 would be a profit of $1330.00

OPEC has cut production and a few non OPEC players have also cut production, with falling rig counts and pipeline issues helping the rally stay in place.

Consider buying calls, the May crude oil WTI contract 62 call cost .64 = $640.00 of quantifiable risk plus fees associated to costs per transaction to enter the trade. Risk is a loss of premium and fees.

The 60.5/62 call spread cost .55 = $550.00 of quantifiable risk plus fees and associated costs per transaction to enter the trade. Risk is a loss of premium and fees.

For a move lower consider buying puts on May crude oil WTI contract, the May 55 put cost .47 = $470.00 of quantifiable risk plus fees and associated costs per transaction to enter the trade. Risk is a loss of premium and fees.

The May crude oil WTI OPTIONS contract expires in 28 days 4/16/2019 

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To discuss any strategies feel free to call 888-391-7894 or email me peterori@walshtrading.com

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