Scaling Calendars in XLE

[Steven Place]

XLE is up 10% in 5 days. Pretty good move, but after that kind of move we should expect some sideways action.

I’m going to place some calendars that are slightly bearish, with the intent to add more size if XLE continues to rally.

Buy to open XLE Nov/Dec 65 Put Calendar @0.81

If XLE runs to 68.50 we will add the 68 put calendar. If we see a move to 71 or so, we will add another round.

Target profit is 25% return on risk.

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[Marco]

In @0.80

[Steven Place]

68.50 hit, time for another round of calendars:

Buy to open XLE Nov/Dec 68 Put Calendar @0.89

If we see amove to 71 we will add another round.

[Steven Place]

Going to take the money and run… markets are still stupid strong and XLE is pulling back only because oil is weak and dollar is strong.

Sell to close XLE Nov/Dec 65 Put Calendar @0.78

Sell to close XLE Nov/Dec 68 Put Calendar @1.15

Coming around a 13% return on risk.

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