15d • General discussion
WTI Crude Oil Rallies to $81 — Why Our Oil Options Strategy Stayed Patient
WTI Crude Oil Rallies to $81 — Why Our Oil Options Strategy Stayed Patient
WTI crude oil opened the session at $76.15 and closed strong at $81.01, a solid move higher of nearly $5 per barrel in a single session. For many traders, a move like this might feel like something you should chase.
But disciplined oil traders understand something important:
Not every market move should change your strategy.
In this case, the trading account remains steady at $7,200, up from $6,400, and the current strategy remains unchanged until WTI pulls back into the $70 range.
Why?
Because professional traders often wait for better entry zones, not emotional breakouts.
Oil Market Context: Why This Move Matters
Crude oil volatility often creates sharp short-term rallies, especially when markets react to macro factors like:
• supply expectations• geopolitical tensions• dollar strength• equity market weakness
Even though oil rallied to $81, the broader financial markets showed weakness with the Dow Jones Industrial Average selling off during the session.
This divergence between oil and equities can signal short-term volatility ahead, which is why disciplined traders avoid overreacting to a single price move.
Why the Account Value Didn’t Change
One of the biggest lessons for new traders:
Account value only changes when positions change.
Since the strategy is waiting for WTI to return to the $70s, no new crude oil options trades were triggered.
That patience is intentional.
Professional traders often let the market come to their price levels, rather than chasing price after a rally.
Stock Watch: ORLA Pullback Creates Opportunity
Another market development came from Orla Mining Ltd., which closed at $18.20, roughly 9% lower on the day.
Interestingly, this drop happened even after Gold briefly pushed to $5,000 before selling off.
This kind of pullback can create opportunity.
The plan once a buy signal appears is to:
1️⃣ Purchase shares of ORLA2️⃣ Immediately Sell To Open an in-the-money put option
The Strategy: Why Sell an In-The-Money Put?
This strategy confuses many new traders, but it’s actually a very powerful income technique.
Selling an in-the-money put allows traders to:
• collect premium immediately• potentially acquire more shares at a lower effective price• generate income while building a position
It’s a method often used by options traders who want to accumulate stock while getting paid to do it.
Once the trade executes, the structure becomes much easier to understand because traders can see how the option premium offsets risk.
Key Takeaway for New Traders
The most important lesson from today’s update:
Professional traders follow a plan — not the excitement of the market.
Even with crude oil rallying to $81, the strategy remains patient and disciplined:
• Account balance: $7,200• Waiting for crude oil to retest the $70s• Watching ORLA for a structured options entry
Markets move every day.
The edge comes from waiting for the right setup.
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WTI Crude Oil Rallies to $81 — Why Our Oil Options Strategy Stayed Patient
skool.com/oil-option-trading-101-1282
How to use options to reduce risk in a portfolio. You can use this for all stocks and commodities but we going to trade Crude oil and oil options.
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