MyDVICE

- LETTER & VIEWS by NEV R. AGN

Update on Option Structure initiated on 2 June 2020

6 June 2020

OIL POST NUMBER 3(b)

– – –  UPDATE ON:  Strategy (using ICE Brent Options):

1. Sell 1x September 30 Put (expiry:  28 July 2020); and

2. Buy 1x December 55 Call (expiry: 27 October 2020),

Initial Net Premium = Zero; net theta = positive 4.0; net vega = positive 2.6.

Current Net Premium = 0.67 in favour of the December 55 Call (closing option prices taken from barchart.com).

Market is now closed for the weekend with Spot Brent closing at or around 42 dollars/barrel.  

Next post:  long-term positioning and goals.

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