How to Sell Oil with Options (RDSA stock)

Updated: 25 November, 2021 seen 29

There are a couple of ways some might get exposed to the oil market, you could go with futures, ETF's or individual stocks. 

In this article, I will share an example on how some could sell options on individual stock - a stock I've been selling options with mixed success in the past - RDSA - or Royal Dutch Shell

Royal Dutch Shell PLC, commonly known as Shell, is a British-Dutch oil and gas company headquartered in the Netherlands and incorporated in the United Kingdom. It is one of the oil and gas "supermajors" and the third-largest company in the world measured by 2018 revenues (and the largest based in Europe).In the 2019 Forbes Global 2000, Shell was ranked as the ninth-largest company in the world (and the largest outside China and the United States), and the largest energy company. 

RDSA can be traded on London, Amsterdam and New York Exchanges. I prefer trading RDSA: AEX (Amsterdam), but that's very individual. 

For trading options on stocks, I keep a trading journal in Google Spreadsheets

RDSA Trading Journal

RDSA Trading Journal

I started selling ratio back spreads in March 19, 2020. (Just after the big crash in the stock market caused by Covid19)

After one month of trading, I had 24 postilions on RDSA, but as I was trading ratio back spreads, these are actually 12 positions. Still a lot, but this is not the subject of this article. 

Visit Covered Calls with Reinis Fischer to learn more