Roughly one week ago we exited what would be a profitable directional trade in XOP.
XOP had climbed into a short-term overbought state, so I decided to short the ETF using puts. Now typically, I am a seller of options, but the set-up was just too good to pass up for an aggressive style trade so I bought a few puts. The result was a 74% gain over just a few trading days. While I’m not going to anticipate similar results this time around, I am excited about the opportunity ahead.
We are greeted with what looks like another opportunity in XOP among other ETFs. I reluctantly did not place any trades today, although I was tempted to place a trade at the closing bell. So, hopefully we see a relatively flat open so I can make a few high-probability, Mean-reversion trades. Subscribers stay tuned!!!
