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:
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.