December 18, 2019
Crude Oil volatility has been picking up a little as price is pushing into the upper end of the 52-week range. A long-only stance is our preferred position due to the capability for Crude Oil to accelerate in the direction of the trend.
A good trade for this market is longer dated spreads (120+ DTE) and lower Delta (<.20 on the shorts) and a minimum of $500 in credit received.
A new 5 or 10 session low would be grounds for adding the equivalent call side position. Otherwise, on the upside a target profit-and-roll of 70% to 90% of the credit received tends to work best.