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Oil is now at a new high of $113.24 ahead of Trump's Tuesday evening Iran deal ultimatum.
CVX option premiums are elevated due to oil price spikes and geopolitical risks.
KEY POINTS
- Rolling over expiring covered calls can lock in a 7.43% one-month total return.
- Shorting May 15 $220 CVX calls yields 0.935% in 39 days with only 17% exercise probability.
- Shorting May 15 $185 CVX puts yields 1.57% with a 23% chance of assignment.
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