LD Lossdog Research
Symbol timeline

MCL

4 source-linked records across the archive.

Trade idea

MCL Broken Wing Butterfly

The broken wing butterfly trade in MCL (micro crude oil) is designed to profit from a range-bound movement in crude oil prices. The trade involves buying a 74 strike and selling 70 and 72 strikes, while also selling 82, 84, and 88 strikes. The maximum profit is $220 if crude oil stays within the expected range, while the maximum loss is $180 if the price moves beyond 82. The trade has an 81% success rate, making it a high-probability strategy for beginners.

View full notes
StrategyBroken Wing Butterfly
AssetFutures Options
ExpirationAugust
Time horizonUntil August expiration
Entry / triggerCrude oil price below 82
Target / exit84
Invalidation / stopCrude oil price above 82
SpeakerUnknown
Structure / legs
  • 74
  • 70
  • 72
  • 82
  • 84
  • 88
Risks
  • Crude oil price moves beyond the expected range
  • Market volatility
  • Liquidity issues in micro contracts
Long ButterflyBroken Wing ButterflyMCL
high confidenceVerify in video at 38:21 ↗
Trade idea

MCL straddle/strangle

The trader is short a straddle on micro CL futures at 71 strike, which expires March 17th. If the market remains within a range, the trader can profit from time decay. If the market moves significantly, the trader may need to roll the position to April, selling a put at a higher strike (e.g., 100) to hedge against potential assignment. This strategy is based on the expectation that the market will not move significantly, allowing the trader to profit from the decay of the options.

View full notes
Strategystraddle/strangle
Assetfutures
ExpirationMarch 17th
Time horizonUntil expiration
Entry / triggerMarket remains within a range
Target / exitProfit from time decay and potential assignment
Invalidation / stopMarket moves significantly beyond the range
SpeakerEric
Structure / legs
  • short put at 71 strike
  • short call at 71 strike
  • short put at 100 strike (April expiration)
Risks
  • Assignment if the market moves significantly
  • Time decay may not be sufficient for profit
shortfuturesshortstraddle/strangleMCL
high confidenceVerify in video at 51:17 ↗
Q&A

How do you approach trading the oil market?

The speaker suggests trading the oil market using either the CL or MCL contracts, with a preference for CL due to its liquidity. They recommend avoiding ETFs and stocks that track oil, as they are less efficient. The speaker also mentions that they are a seller of rallies and a contrarian, suggesting that traders should consider the market's volatility and liquidity when making decisions.

View full notes
Actionable takeawayTraders should consider using the CL or MCL contracts for oil trading, focusing on short-term volatility and liquidity, while avoiding ETFs and stocks that track oil.
contrarian tradingCLMCLMarket Liquiditytrading strategy
high confidenceVerify in video at 04:58 ↗
Q&A

Should I let my short straddle expire or roll it?

If the market remains within a range, letting the straddle expire is a viable option. However, if the market moves significantly, rolling the position to a higher strike (e.g., 100) can help hedge against assignment and profit from time decay.

View full notes
Actionable takeawayRoll the position to a higher strike if the market moves significantly to hedge against assignment.
MCLOptions
high confidenceVerify in video at 51:17 ↗