Thinking about selling an iron condor in the front month /CL options.
The logic: big, sweeping moves, bottom pickers kept getting clipped, week after week, almost day after day. Starting to think there will be a balancing range around $55 level. The only concern with the futures options is the length of the expiry, 26 days. May have to look at weekly USO options to consider an alternate, less risky strategy.
A view of the range (in pink) of the breakeven.
SELL 3 Feb. 59.00 Calls,
BUY 3 Feb. 59.50 Calls,
SELL 3 Feb. 54.00 Puts,
BUY 3 Feb. 53.50 Puts,
Net credit of $.35.
View of the trade risk/reward: