what neither of you get is that your normal fundamentals about a functional economy and the stock market dont apply here. unemployment is atrocious and going to rise yet oil is still at 70$? so obviously the economic recovery/domestic demand argument for why oil should be low is invalid...
If it wasnt a directional trade then the only thing it could be is a volatility trade hedged on about a 7 delta. For what could he be hedging against? definately not a hedge against any short physical oil or futures position because that wouldnt make sense to buy USO options. The only thing he...
someone bought 100,000 of the USO jan2010 55 calls. anybody have any opinion of this? with contango looks like oil would have to go to around 90 for these calls to make money. what do u guys think?
Im looking to invest in commodities but I only have access to stocks. Are there any good stock or etfs to serve this purpose? Anyone have any good ideas? Thanks.