The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.
On Friday’s Options Action, the crew analyzed the performance of oil prices. Energy has been the worst performing sector over the past quarter and has recently started to move higher over the last 3 trading sessions. Coupled with a possible cut in oil production from OPEC and huge bullish bets in crude, suggests a possible bounce higher. Expecting oil prices to move higher, Michael Khouw suggests buying a Dec 28th 12.5/13.5 Call Vertical for a $0.30 Debit. As of Friday’s close, this spread was trading at a $0.28 Debit.
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