July / December CRUDE OIL spread:
I am looking to get LONG the Crude Oil market heading into the summer with all the summertime support that comes along with it. As volatile as CRUDE has been of late, I will go with a spread trade. We have seen a nice pullback in the last 2 months (recent high of 111.49 on March 1st, currently trading at 96.20). The recent support at these levels leads me to believe we may see a reversal in price action. I look to get involved if the spread trades a little lower.
- BUYING the July contract
- SELLING the December contract
GETTING IN the spread at -1.20 or better (GTC) … last trade -1.15
Premium to the SELL side
(we want this spread to get LESS negative)
- Risk will be -1.75 as a STOP ON CLOSE … -($550.00) plus ALL trading fees
- Objective will be -0.40 as a limit order … +$1,200.00 minus ALL trading fees
It may not be possible to limit losses to the exact loss limit depending upon market conditions and the possibility of limit moves.
Have a look:
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