As you may know – I am long Oil/Energy via the Energy Select Sector SPDR ETF (XLE). Here are my transactions to date:
| Trade Date | Tool | Cost/Credit |
| 12/11/2015 | Cash Secured Put (55) | -$1,000 |
| 1/15/2016 | Acquired Shares | $55,000 |
| 1/19/2016 | Covered Call (57) | -$1,100 |
| 2/19/2016 | Covered Call (59) | -$1,060 |
| Effective cost: | $51,840 |
The 59 strike covered calls expire this Friday. XLE is trading at $60.83 at this moment – so there is a good chance I will be called out of the stock on Friday. Even though this would come to a tidy profit of $7,160.00 – I am hoping that Oil comes down a little over the next few days, so I don’t lose the equity exposure.
With that said – here is a sample of what the market thinks about Oils prospects:
- Oilprice.com – Why Oil Prices May Not Move Higher
- BBC – Oil price falls as Iran rejects output freeze deal
- CNN Money – What oil freeze? Saudi Arabia and Russia pump more
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