USO , huge discount

[vguy]

Historically, Oil prices have been up atleast 3 dollars in January month. I go long on USO.

 

[walter4]

I hope you had a tight stop on that USO long.

I'm up 2%, that was a lucky call

 

[Aaron]

I can't win! I drive my SUV around all day to increase the demand for oil and drive the price UP. But, no, instead my greenhouse gases just create global warming and we get a warm winter and lower heating demand and LOWER oil prices. Grrr!

 

[S2007S]

DCR. IF you think oil is going to 50 buy DCR

 

[aeliodon]

Does anyone know if when, options will be available for USO?

 

[kinggyppo]

Quote from aeliodon:

Does anyone know if when, options will be available for USO?

Options on USO are in the works. I do not know when specifically they will trade. I am told that they will trade on the AMEX exchange. The conventional wisdom is that XLE is an ok proxy to hedge the downside to USO. Hedging is somewhat problematic; if the asset classes are not highly correlated you now have two losing trades, not to mention delta, etc. XLE tends to reverse before the commodity itself. I would look at XLE or put options on a high beta stock such as SU (Suncor). Options on crude itself could be considered as well.

 

[TorontoTrader2]

USO volume through the roof lately? Panic selling or Pickens buying?

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[ess1096]

Quote from aeliodon:

Does anyone know if when, options will be available for USO?

You can trade the $oix options for now.

 

[kinggyppo]

Here is an update on USO. There is much interest as oil has broken many lows. The longer term trendline has been broken so its anybody's guess as to the next leg. The last rally was a false breakout. I would look to hedge the downside with high beta oil stocks. XLE is often used. I like the SU march 70 puts for $1.85 as a hedge, you may want to wait for a little to put on a hedge.

 

[kinggyppo]

crude monthly chart.