HESS is trading in a range and has bounced off support. There are multiple bottoms near $75 and multiple tops near $87.50. One way to play this is through Iron Condors. Optionally, we would want to leg into the call side since ATM Calls are worth more than what we can get right now.
Iron Condor
Sell May 11 75 PUT
Buy May 11 72.5 PUT
CREDIT .59
Sell May 11 87.5 CALL
Buy May 11 90 CALL
CREDIT .09
If we want to get more directional for a debit we could purchase an ATM Call at 77.50.
Buy May 11 77.5 CALL
DEBIT 2.22
It’s all a matter of style. The total downside risk for both trades is about the same. The Call buy has more upside potential from here.
