The rising price of crude made this trade a loser from the start. I am pleased to be able to scratch it. Commodity prices have been rising as the value of the US dollar has been dropping. Being able to break even when the price of crude shot up above the strike price demonstrates the power of selling naked options. Time and volatility decay are important elements. So is the ability to roll strike prices and expiries in order to collect additional credits. As crude’s volatility is relatively low at present, I decided that it was best to exit rather than push to make a profit. Additional buying power has been restored in anticipation of the next opportunity.
Bought /CL Aug 35P/36C strangle for a $5.91 credit.