Thoughts on going long oil and gas stocks, shorting USO?

[Saltynuts]

Thoughts on this?

Thanks!

 

[qwerty11]

u mean short uso because of short oil or the alleged flaws?

 

[xandman]

Aside from buying longer term futures contracts , there is no more contango to bleed USO. The declining dollar will reprice oil higher and OPEC won't make the same mistake twice.

I would rather do the opposite of that trade until the end of the year.

 

[maxinger]

what strange strategy.

USO is as flat as a flat glass. price has been around $28 for donkey months.


when you do spreading, you expect
spread to widen or
spread to shrink.

In this case, why bother to do spread when USO price is so flat?
why don't you simply long the unknown oil and unknown gas stocks?
why add another complexity?

 

[christielowe]

Considering the totally unpredictable value of oil right now, I would suggest you to rather wait a while.

 

[Overnight]

Considering the totally unpredictable value of oil right now, I would suggest you to rather wait a while.

Aren't you a bit late to the party offering this sage advice?