United States Oil Fund (USO)

[Toro KMA]

The USO isn't a good play on oil IMO. It invests in futures, not the underlying physical. With oil currently in contango, you are getting negative roll, which is eating away at returns.

 

[michaelscott]

Today is the key point with USO. One of my energy models has oil going to over 100 dollars per barrel in the times to come.

 

[Sparohok]

By the way, oil is no longer in contango and USO now has a positive roll.

Martin

 

[michaelscott]

Im maintaining my call on USO. Its about 10% up from my first post. I know a lot of ET'ers frown upon a modest 10% one month return, but I am happy with it. I believe it will go higher with a short term target of $64. Longer term it will probably complete the huge cup and might even splash higher.

I know its more profitable to trade oil futures with this thesis, but I dont play around with those. Im happy with my 1 month 10% return on this especially when the entire market is taking a big dive.