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USO

Opening (IRA): USO December 20th 68 Covered Call... for a 66.48 debit. Comments: Back into the slippery stuff with /CL trading at 70.48. Selling the -75 delta call against stock to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call. My basic approach here is to dink and donk on the underlying when /CL is at $70/bbl. or below. Metrics: Break Even/Buying Power Effect: 66.48 Max Profit: 1.52 ROC at Max: 2.29% 50% Max: .76 ROC at 50% Max: 1.15% Will generally look to take profit at 50% max; roll out short call on take profit test. I'll also look to add "rungs" should I be able to do so at strikes/break evens better than what I currently have on.
AMEX:USOLong
by NaughtyPines
Opening (IRA): USO Oct 18th 69 Monied Covered Call... for a 67.44 debit. Comments: This isn't as low as I wanted to get in, but the short call is below where I would've entered would have to have been more patient and waited for 70. In any event, selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call. Metrics: Buying Power Effect/Break Even: 67.44/share Max Profit: 1.56 ($156) ROC at Max: 2.31% ROC at 50% Max: .78 ($78) ROC at 50% Max: 1.16% Take profit at 50% max; roll in-profit short call to maintain net delta <30.
AMEX:USOLong
by NaughtyPines
Opened (IRA): USO Dec 20th 63 Covered Call... for a 61.26 debit. Comments: (Late Post). High IV (67.7% as of Tuesday close) + weakness. Added a "rung" to my existing position at a strike better than what I currently have on, selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call. Metrics: Buying Power Effect/Break Even: 61.26 Max Profit: 1.74 ROC at Max: 2.84% 50% Max: .87 ROC at 50% Max: 1.42% Will generally look to take profit at 50% max, roll out in-profit short call on test of take profit. Here, the 50% max take profit would be .87 + 61.26 or 62.13.
AMEX:USOLong
by NaughtyPines
Opening (IRA): USO December 20th 65 Covered Call... for a 62.41 break even. Comments: High IVR/IV (79/51) plus weakness. Adding a rung to my USO position out in December at break evens better than what I currently have on. Selling the -75 delta call against stock to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call. Metrics: Buying Power Effect/Break Even: 62.41 Max Profit: 2.59 ROC at Max: 4.15% 50% Max: 1.30 ROC at 50% Max: 2.07% Will generally look to take profit at 50% max; look to roll out the short call on test.
AMEX:USOLong
by NaughtyPines
Opening (IRA): USO Nov 15th 67 Covered Call... for a 65.26 debit. Comments: Adding a rung at strike prices better than what I currently have on, selling the -75 delta call against long stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. Metrics: Buying Power Effect/Break Even: 65.26 Max Profit: 1.74 ($174) ROC at Max: 2.67% 50% Max: .87 ROC at 50% Max: 1.33% Will generally look to take profit at 50% max/roll out the short call on side test.
AMEX:USOLong
by NaughtyPines
Opening (IRA): USO Nov 15th 63 Covered Call... for a 61.27 debit. Comments: Adding to my USO position at strikes better than what I currently have on (the Nov 15th 67's and the Dec 20th 69's). Selling the -75 delta call against stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. Metrics: Buying Power Effect/Break Even: 61.27/share Max Profit: 1.73 ($173) ROC at Max: 2.82% 50% Max: .87 ($87) ROC at 50% Max: 1.41% Will generally look to take profit at 50% max, roll out short call on side test.
AMEX:USOLong
by NaughtyPines
Is Global Oil Demand the Key to Energy Market Stability?In the intricate landscape of global energy markets, the question of oil demand remains a central enigma. Driven by a confluence of geopolitical tensions, OPEC+ production strategies, and economic dynamics, global oil demand is a complex tapestry that shapes the future of energy markets. Geopolitical events, particularly in the Middle East, have historically been a significant driver of oil price volatility. The recent escalation of tensions has once again underscored the delicate balance between geopolitical stability and global oil supply. As geopolitical risks rise, so too does the price of oil, impacting investors in oil-related securities like the United States Oil Fund (USO). However, geopolitical factors are just one piece of the puzzle. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, OPEC+, play a crucial role in regulating global oil supply. Their production decisions, often influenced by economic considerations and geopolitical pressures, can significantly impact oil prices and, consequently, global oil demand. Beyond geopolitical tensions and OPEC+ dynamics, economic factors also play a vital role in shaping global oil demand. The global economy, with its cyclical nature, influences energy consumption. During periods of economic growth, oil demand tends to increase, while economic downturns can lead to reduced consumption. The interplay between geopolitical risks, OPEC+ strategies, and economic factors creates a complex and dynamic environment for the global oil market. Understanding these intricate relationships is essential for investors seeking to navigate the challenges and opportunities presented by the oil sector.
AMEX:USOLong
by signalmastermind
Is oil signalling a recession? Oil has really started to free fall. The death cross on the daily chart has occurred. this is where the 50 MA intersects with the 200 MA in a downtrend. This often implies more downside to the medium and long term but is often a great short term long signal. Usually when you get this signal the market makers bounce the stock or commodity a bit before taking it lower. We are hitting a massive multi year trend line going back to 2022 that should act as some support. XLE looks ready for 1 more down leg before a swing tradable low is in. Energy does have a tendency to fall precipitously so understanding oil can keep falling if investors fear the worst or a recession.
Editors' picks
AMEX:XLE
by Trading-Capital
5
Crude Oil Slips: Third Consecutive Week **"Crude Oil Slips: Third Consecutive Week Of Losses Amid Mounting Bearish Pressure"** On Friday, August 30th, front-month crude futures sharply dropped before paring losses. OPEC+ is reportedly leaning toward an output increase in October. Our algorithm issued a daily chart sell alert on July 22, 2024, followed by a weekly chart sell alert on August 12. A break below the $69.28 price level on a weekly basis could potentially trigger a more significant decline, driving crude prices down to $60 or lower by early next year.
NYMEX:CL1!Short
by AlgoTradeAlert