Options Trading Concepts Live - October 14, 2025 - Oil Traders Eye New Range as Crude Breaks Below $60
Description
Thomas Tuesday's analysis suggests crude oil is establishing a new trading range after breaking below the $60 support level, with forecasters projecting sub-60 prices through Q2 2025. Calendar spreads have shifted from backwardation into contango, indicating weakening physical demand. Market positioning shows longs have capitulated while shorts have built significant positions. With breakeven prices for new wells ranging from $61-$70, production growth may stall at current price levels. Mike constructed a "chicken iron condor" trade with 55-54 put spread and 63-64 call spread, collecting $400 premium with $600 risk. The trade positions around key support at $55 and resistance at $63, anticipating choppy price action in the newly forming range. The broader market showed significant volatility, with SPX experiencing a 125-point intraday range as traders navigate headline-driven swings across markets.
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