USO - Open Position


Written on January 2, 2009 – 12:51 pm | by admin

Today I opened a position in USO.  I got involved in this last month and am going to take the plunge again.  The details:

Buy: 100 @ $33.15 ($0 commission)
Initial Investment: $3315
Sold: $28 strike @ $5.80 ( $5 commission)
Net Investment: $2740
Expected Return: 2.00%

I am ok with holding this etf for a while.  I think there will be good premiums on this one because people will keep trying to find the bottom and 

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  1. 2 Responses to “USO - Open Position”

  2. By Robert Nicholson on Jan 10, 2009 | Reply

    If you want to hold the stock why are you selling a strike that’s already in the money?

  3. By admin on Jan 11, 2009 | Reply

    I don’t want to hold anything more than one month if possible. That’s why I sell in the money strikes. What I meant was that should oil drop the 15-20% needed to fall below my strike, I would be ok with holding oil for a while. I think oil will stay between 30-40 for a while. Oil also can’t go out of business so if it does fall to $20, it will come back. It may take a long time but oil should come back and as long as I can keep my annual return around 20-25% on this position, I will be happy.

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