On Friday’s CNBC’s Options Action, the crew analyzed the performance of crude oil. Crude has rallied substantially off its mid 2017 lows and has recently reached the top of a bullish channel. Crude has an inverse relationship to the US Dollar which has reached a support level, suggesting a possible bounce lower for crude. Coupled with a healthy supply and soft demand for oil, expectations are for oil prices to move lower. Expecting oil prices to have peaked here, Michael Khouw suggests buying an April 12.5/11.5 Put Vertical for a $0.20 Debit.
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