As I am writing this USO is trading at $3.77. On yahoo finance it states that this funds top holdings are April futures contracts. With May CL futures falling to a record $-40 a barrel what will happen to USO? Can the fund actually trade at a negative? Or is it possible it will cease to exist?
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USO price question?
- Thread starter Lucsan001
- Start date
is it really a fund or is it a purchasing society?
USO can be liquidated. i would expect a reverse-split first, but who knows. it's holding June futures (and also July?).
It seems to me that if oil stays under $20 USO will continue to drop regardless short-lived rallies.
It seems to me that if oil stays under $20 USO will continue to drop regardless short-lived rallies.
I believe USO is an ETF of FUTURES only. I remember during tax time I would get a different kind of 1099 for USO. It is different than most ETFs. It is almost like a co-op...Best way to explain it. It is an LLP. It's like buying pork belly futures...It is not for the average investor. It was designed for professional oil managers. Regular people have moved in (not knowing what they are doing) and are getting burned.
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its in the prospectus, read it all or go to page 35
http://www.uscfinvestments.com/documents/united-states-oil-fund-pro-20180228.pdf
it can liquidate
http://www.uscfinvestments.com/documents/united-states-oil-fund-pro-20180228.pdf
it can liquidate
Ok, but with CL trading negative and if it continues to stay that way will USO stay at 0?USO can be liquidated. i would expect a reverse-split first, but who knows. it's holding June futures (and also July?).
It seems to me that if oil stays under $20 USO will continue to drop regardless short-lived rallies.
Or will it get liquidated kind of like what Credit Suisse did to the XIV etf?
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Thanks for this info. I am interested in USO because I was thinking about purchasing Jan 2021 call options.I believe USO is an ETF of FUTURES only. I remember during tax time I would get a different kind of 1099 for USO. It is different than most ETFs. It is almost like a co-op...Best way to explain it. It is an LLP. It's like buying pork belly futures...It is not for the average investor. It was designed for professional oil managers. Regular people have moved in (not knowing what they are doing) and are getting burned.
I don't wanna be long by directly purchasing USO but I was interested in purchasing call options expiring on Jan 2021.rolling in a futures curve with extreme contange is extremely costly ... not something i'd wanna be long
I don't wanna be long by directly purchasing USO but I was interested in purchasing call options expiring on Jan 2021.
just calls-ITM, OTM, or what about lower cost vertical spread ...?
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