Short Term Oil Rush

JC Project Freedom MPLX option trade

I am sharing this to record my option trade. It is not meant for stock or options trading recommendation.

We started the new decade with new turmoils between USA and Iran. I wanted to go long on RDS.B but I end up selling put @ $55 expiry 17th January 2020. I could have made more by buying the stocks.

Recently, I was looking at doing options or investing in other oil related counter such as BGR or MPLX. In the end, I choose to sell put 40 MPLX $25 premium 0.45 expiry on 21st February 2020. I pocket USD 1,800. It is a return of about 1.7% for 45 days. Now self justification – I choose to accept the risk at $25 with a dividend yield of about 7% net taxes.

This is a short term play.

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