oil options
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Started by Richard - May 14, 2019, 11:39 a.m.

I own 30 of the WTIC September 100 calls that I paid $0.02 each for. They were 1 bid offered at 2 at that time. They are currently trading at 3 bid/offered at 4 so basically the price has DOUBLED but the price of oil is no higher now then when I purchased them AND time has passed so in the world of options these options should be cheaper. just telling traders what is happening. Interesting that the options players are taking what is happening in the middle east seriously. 

Re: oil options
By metmike - May 14, 2019, 5:39 p.m.
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Thanks Richard.

A huge spike higher above $100 in the next couple of months and you would make a killing!

What date do your calls expire?

By metmike - May 14, 2019, 5:42 p.m.
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By metmike - May 14, 2019, 5:48 p.m.
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metmike: June crude spiked down from around 61.71 to 61.33 seconds after the release of the API data below:

Large Crude Build Weighs On Oil Rally

"The American Petroleum Institute (API) reported a large surprise build in crude oil inventory of 8.6 million barrels for the week ending May 10, coming in significantly over analyst expectations of a 2.125-million-barrel drawdown in inventories.

Last week, the API reported a build in crude oil inventories of 2.81 million barrels. A day later, the EIA contradicted the API’s report, instead estimating a draw of 4-million-barrels. 

Including this week’s data, the net build is now 29.52 million barrels for the 20-week reporting period so far this year, using API data."

"Oil prices rose sharply on Tuesday on multiple reports of turmoil in the Middle East, including attacks on four oil tankers off the Strait of Hormuz, and a drone attack of a Saudi pipeline—although this was tempered somewhat by the escalating China-US trade war."

"The API this week reported a build in gasoline inventories for week ending May 10 in the amount of 567,000 barrels. Analysts estimated a draw in gasoline inventories of 274,000 barrels for the week.

Distillates rose by 2.2 million barrels for the week, while inventories at Cushing rose by 2.1 million barrels.

US crude oil production as estimated by the Energy Information Administration showed that production for the week ending May 3—the latest information available—fell to 12.2 million bpd from the all-time high of 12.3 million bpd the week prior."

By metmike - May 14, 2019, 5:59 p.m.
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Oil chart from the last 2 months below

Oil 1 year chart

Oil 10 years below

Re: oil options
By Richard - May 14, 2019, 6:10 p.m.
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September options expire in min August. I expect a war and oil around $130 by expiration, but obviously I have had these thoughts before, only to see them now play out as expected.