We sent a newsletter earlier today with a new trade idea in QQQ. In class we discussed our overall outlook for stocks and the economy. In a nutshell, we believe that a slowdown and even mild recession could come early next year. However, the “value” areas of the market should out-perform. Things like Energy we do NOT believe have very much downside. As always, these viewpoints are subject to change but for now, we feel good increasing our exposure to that group and a few others. With that in mind, we added a new bullish trade in OXY to go along with stock shares we own.
Buy to open: OXY April 19th, 2024 (monthly) 65.00 strike call (ratio of 1)
Sell to open: OXY April 19th, 2024 (monthly) 75.00 strike call (ratio of 2)
Buy to open: OXY April 19th, 2024 (monthly) 85.00 strike call (ratio of 1)
Debit: 1.97
Max risk = 1.97 or $197.00 per spread
Max reward = 8.03 or $803.00 per spread