with special guest Gareth Ryan
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We are positioning bigger picture short crude oil with a short-term upside hedge with a calendar straddle on Crude Oil ETF (USO). We are buying to open the August 17th $14.00 put option for $0.75. To hedge the chance that we are early, we are buying a short term June 15th 2018 call option at $14.00 for a $0.55 cost. This is a $1.30 capital outlay. Traders should size their position based on the entire premium being at risk.
We are opening a new position on AT&T (T). We are selling to open the January 2019 $32.00 put for a $2.42 credit and buying to open the June 2018 $30.00 put for a $0.22 debit as a hedge. This is a $2.20 net credit or $220.00 per 1 contract combo.
Last Traded: $169.10
20 Day MA: $168.72
First Targets $180.00
Outlook: We are refreshing the Apple breakout as a new re-entry breakout. The stock is suggesting a post earnings open above $175.
Last Traded: $98.58
20 Day MA: $97.22
First Targets $102.00
Outlook: We are looking to see if American Express can follow through to the upside after a strong earnings move.