RBOB OPTION STRATEGY

Peter Ori General Commentary Leave a Comment

It appears that refiners and producers are almost fully back on line from annual maintenance and upkeep, also repairs from Hurricane Michael storm damage. I think RBOB could move lower the last price of this writing is 1.7860. Oil storage and production are up and soon refined product could also strengthen. The demand while still solid is lower because of EV’s and Hybrid’s, also more and more fuel efficient cars and trucks both gas and diesel are on the road. I suggest buying puts on RBOB targeting 1.73 1.70 and possibly 1.68 futures level, for December RBOB.

 

December RBOB Options expire 11/27/18 in 27 days.

 

Buy the December 170 Put pay .0203 = $852.60 of quantitative risk plus clearing commissions, fees and associated costs or buy the December 168 Put pay .0161 = $676.20 of quantitative risk plus clearing commissions, fees and associated costs.

 

For a contrarian view or upside protection the December 190 Call pay .0217 =$911.40 of quantitative risk plus clearing commissions, fees and associated costs or the 191 Call pay .0915 = $819.00  of quantitative risk plus clearing commissions, fees and associated costs.

 

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

 

 

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