Options: XLE (Credit Call Spread)

Trade Setup

  • Credit call spread
  • Direction: Bearish
  • DTE : 53 days ( 16 October 2020)
  • IV Rank 21.7
  • IV 39.5%
  • Short call at $41, and long call $43
  • POP: 78%, OTM 83%

Rationale For A Bearish Trade

XLE Top 10 Holdings
  • Chevron Corporation 23.14%
  • Exxon Mobil Corporation 21.94%
  • Kinder Morgan Inc Class P 4.41%
  • ConocoPhillips 4.40%
  • Schlumberger NV 4.33%
  • EOG Resources, Inc. 4.26%
  • Williams Companies, Inc. 4.17%
  • Phillips 66 4.02%

XLE_24082020

 

Disclaimer: This is not an investment advice or endorsement. Please refer to the general disclaimer of this blog.

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