prvtrader 11:40 am on Monday, February 22, 2016

XOP Bearish Diagonal.

STO Mar 18 23.5 Put and BTO Apr 2nd 27.5 Put Total debit of $2.48 pp

Craig Blair 7:18 pm on Monday, February 22, 2016

So you expect oil to be under 26 for sure by Mar 18? If I am reading this right… seems like a lot of risk, versus little reward. Oil has to go to 20 to make 90 percent profit? Maybe I am reading this wrong, appreciate the help in learning…
- prvtrader 6:02 am on Tuesday, February 23, 2016
  
  The idea is to reduce the cost of the Long Put by selling a short term duration OTM Put on Mar 18 and again in Mar 25 exp. Then roll the long Put forward and do it again. If position loses 1/2 of the cost , then I’ll keep the short put naked and exit the long Put….So risk is small.

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