Captured another low risk high profitable trade on Crude Oil futures. This trade is aligned with my weekly crude oil futures update
- 25 June 2018 – Entered Bull Call Spread (BCS) and Bull Put Spread (BPS) when the futures bounced off 10-weekly SMA and 50-daily SMA.
- BCS is a debit spread, referring to my trade below, I paid $1,100 per contract to enter this $3 spread strategy; which means I was risking $1,100 to make $1,900 if this the futures expired at $72.
- BPS is a credit spread, referring to my trade below, I received $190 per contract to enter this $0.50 spread strategy; which means I was risking $310 to make $190 if this the futures expired above $68.
- 28 June 2018 – My BPS profit target hit and I paid $50 to close my position. Gross profit = $140 ($190 – $150)
- 3 July 2018 – My BCS profit target hit and I received $2600 to close my position. Gross profit = $1,500 ($2,600 – $1,100)
Total gross profit = $1,640 within 9 days!
Return on Equity = 116.3% ($1,640/ ($1,100 + $310) * 100%)
Lifestyle Options Trader 
When futures bounced off 10-weekly SMA and 50-daily SMA :
Ref to above statement, can you advice if 10-week SMA means? Is this also similar to 10-daily SMA?
How do you set or reference to what do you set your profit target for both BCS and BPS?
Thank you in advance and hoping I can enjoy like yourself to be successful option trader like yourself.
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Hi Sam, I am looking at a longer trend, weekly chart to determine the direction hence I prefer 10 week SMA rather than 10 day SMA; and it serves me well; for BCS and BPS I always set a price to close it before expiration. Hope this helps!
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