On Monday, we opened the Occidental Petroleum Corp. (NYSE: OXY) May 15, 2020, $7.5 put (OXY200515P00007500).
Prices were going in our direction yesterday, but moments ago, President Donald Trump tweeted that he expects Saudi Arabia and Russia to cut oil production by about 10 million barrels.
This tweet has sent oil soaring nearly 30% and Occidental Petroleum Corp. (NYSE: OXY) up 20%.
This reaction has dramatically changed the direction we needed.
Instead of fighting the tape, it’s best to manage this position.
We’re going to cut bait and move onto the next trade.
Here’s what to do…
Action to Take:
- In your brokerage account, locate the OXY May 15, 2020, $7.5 put:
- Locate the options in your portfolio with the ticker: OXY.
- The symbol is OXY200515P00007500.
- Select how many contracts you want to sell.
- Once you have the right contract, click "sell to close."
Choose the "market."
- Then click "sell" to transmit the order.
You can also call your broker and say, "I want to sell to close OXY May 15, 2020, $7.5 put at the market."
Losing can be frustrating, but we’ll continue to follow the system and get them on the next one.