Trade Details & Summary

USO Call Debit Spread (LIVE Closing Trade)

Well before expiration we got a nice early move higher in USO and took off our call debit spread for a $195 profit after bidding a couple dollars higher than mid-price to get a quick fill.


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This is going to be another live trading video that we're going to do here with USO and we're going to go ahead and close out of this USO position that we have.

This is a bullish position that we got into in USO, and you could see this is all live real time, markets open today on August 15th. We got back into this position a just couple of days before the end of July, on the 29th, and the whole rationale for getting into this position was a couple of things.

One, to hedge the portfolio because we had some other bearish plays that we're still working out in August. Then two, we thought the USO had reached a pretty good technically oversold level. We based that off of the fact that at the point in which we got into USO which was on the 29th, which was this green day right in there.

So this green day right here. At that point, we saw that USO had been technically oversold, using the indicators that we have published on our signals report which is our 20-year backtesting report of technical analysis. We found that the buy signals all lined up, so our three top buy signals all lined up.

Not saying that of course that it always turns around, because in this case it still went down for two more days before the hit bottom, but it did turn out to be a good buy indicator. As a result, we did this bullish debit spread in USO and had taken advantage of the potential move higher.

In this case, volatility has stayed low and that's okay, we didn't want or expect to move higher in volatility. It was more of a directional play. Again, using our signals report that we had published to make this trade. When we go in here and look at it ...

Again we got back in on the 19th; we had bought this spread, this nine, ten and a half call spread for 78 cents apiece. We took five of them at the time and now they're trading for about 1.17 which is more than our profit target today. It's up 45 dollars.

We're up 1.95 on the total trade overall, so again we're just going to take this thing off and try and get out of this thing for about 1.17. I don't know if we can sell for 117 right now. There's lots of activity right now in this contract month for September, I mean we're still 30 days out, and there's still some pretty good activity in this contract month.

So we're going to try for 1.17, see if we can get confirmed and sold here really quickly, in the next couple of minutes or so, and if not then we'll drop it back down to 116. There's a lot of activity in the ten and a half strike today, but not too, too much activity in the nine strike that's going on today.

Again the market's moving directionally where we want it to be, so we just have to be a little bit patient. We've got obviously nice profit working here; we don't want to be stingy or greedy. We can give up a penny or two in price to get 190, 195 dollars out of the trade.

So what we'll do here is we'll see this order working, and we'll come back and pause this video and see if we can't get billed or have to adjust the price. All right so we're back here, and it's been a little bit since we placed this order back around 12:30. It's now about 1:48 in the afternoon so we waited a while.

Still trading right around that 1.17 price point but just doesn't seem to want to fill. So what we're going to do is just move down by a penny here, and this is usually what I do with all of our trades. If we don't get filled right away, then we just move down by a penny, see if that works.

You can see that we did get filled, actually, we got filled at 1:17 which is actually kind of ironic considering that we tried to cancel the order, but we just got filled at 1:17 which is good, but we tried to go in at 1.16 and just moved the order down. I mean I'll shave five dollars off of it to make a nice decent profit.

You can see here that we've made apparently a nice little fill here for USO, and so that's just another profitable trade that we're just going to bank here well, well, well before expiration.
So, as always, hopefully, you guys enjoy these videos. If you have any comments or questions, please ask them in the comments section right below this video and til next time, happy trading.

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