Option Writers Newsletter, Wednesday, 06/10/2009 12:30:00 PM EDT
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New Position Recommendation
by Robert Ogilvie
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HAVING TROUBLE PRINTING?
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As I mentioned in Monday's nights market wrap, Crude Oil is nearing my upside target level of $71.75. As I write this the miNY Crude Contract is at $70.825 per barrel. Therefore, I want to start shorting oil a little here. One way we option writers can be short biased is to sell the US Oil Fund ETF (symbol: USO) calls. The trade is to sell the June 40 Calls (symbol: UBO RK) for a target price of $0.55 to 0.60 per contract. We will be selling 3 contracts for our allocation. This translates to a $12,000 notional value for the position if assigned. Our average target is $10,000 so obviously we are a little over allocated here.
Robert Ogilvie
