Market: Crude oil, $CL_F, $QM_F
Original Recommendation issued January 18: Option values are inflated due to Middle East Tensions, sell strangles
Update: Exit trade, lock in profit of about $600
This strangle has lost about 43% of its value in about 6 trading days. There are 47 days until these options expire, and that is plenty of time for things to go wrong. Additionally, the next 60% of the option value will be much more difficult to capture, and will likely take several more weeks. We like the idea of locking in a profit of about $600 on the current strangle. If volatility picks back up, we'll consider re-establishing strangles in this market.