The current month contract for crude oil futures expires at Tuesday's close. On Monday we saw crude prices drop over $3 intraday to trade under $69. The rapid drop in prices was triggered by traders closing positions in the contract prior to expiration.
The drop caused us to be stopped out on the MDR and WLT positions. WLT gapped down -$3 at the open to $59.18 before rebounding to close positive at $62.87. If we could just figure out how to skip the first 30 minutes of trading every day we could make a fortune.
I want to go back into the WLT Oct $65 put (WLT-VM) at Tuesday's open. It is currently bid at $5.10 and crude futures are positive over night.
Sell short WLT-VM at the open on Tuesday with a stop loss at $61.50.