USO - Open Position
Written on December 9, 2008 – 7:08 pm | by admin
Today I opened a position in USO. I’ve been looking to get into oil around $40. I don’t believe we will get to $20-$25 oil. If that happens production will stop so much that supply will deminish. I tried to establish a position in DIG yesterday which would benefit from a drop as well as a rise in oil prices but decided to not expose myself to another leverage ETF. I have enough of that with all my SSO positions. The details:
Buy: 100 @ $35 ($7.00 commission)
Initial Investment: $3507
Sold: $32 strike @ $4.20 ( $8.51 commission)
Net Investment: $3095.51
Expected Return: 2.88%
I am ok with holding this etf for a while. I think there will be good premiums on this one because of its very oversold nature. People will be expecting a rally and I think the time value on this one will be pretty good.
Tags: USO
