How to Take Advantage of the Crude Oil Market Today

How to Take Advantage of the Crude Oil Market Today
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With the stock market strong and the recent oil weakness this morning I think this is a great time to get long oil between now and the end of the week in the binary options.  A lot of times when currencies and the stock market are range-bound I tend not to like to take trades, but I am looking for a breakout of Oil to the upside and I thinking that that $49 will act as support.

When I look at the nadex market, I think about how much Oil can move to the upside and the average true range is $1.03 which means that it moves up or down $1.03 for 30% of all the days.  So, using this indicator, it can break through the old highs of $50.34 and move to $51 by the end of the week.  So, I look at the weekly options to figure out which one I would want to trade.

There are so many choices, if you like the 51.25 strike your risking only $21 to make $79, but you would have to realize that Oil has to make a huge move higher between now and the end of the week.  If you thought that it was not going to sell off , you could consider looking at an in the money call  type strategy and possibly look at the 48.25 strike, where you risk $86 to make $14.  Otherwise, if I thought Oil was just going to be flat to move higher I could look to buy the $49.25 for $66 to make $34.  

There are a bunch of options choices but looking for Oil to break higher between now and the end of the week.

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