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USO

First signals of bottoming in WTI Crude Oil, Longs FavouredBreakout off short-term resistance at 35$, and a more significant breakout off the June 2014 downtrend line, is positioning WTI Crude Oil Futures for a great long opportunity. Buying this breakout, targeting the next visible resistance target (Yearly Pivot and 50-week MA, also overlapping with the 200-day MA), and placing stops below the downtrend line, makes total sense here in my opinion. The RSI made a higher low on the 13-year-low print in february 11th, and oil has been a one-way street ever since, with RSI flashing a clear buy signal. The only dubious indicator is MACD, which is making a positive print (fast MA going over the slow one), but it remains in a slow downtrend since June 2015. The timeframe of the trade should be similar to last year's impulse towards 60$, hence I expect WTI to test 45$ in early May. Let's see!
FX:USOILLong
by Daniel_Urdaneta
USO JAN 17 7 LONG CALL/APR 1ST 8.5 SHORT CALL DIAGONALTruth be told, things like calendars and diagonals are best suited for a low volatility environment, but I'm looking for a bullish assumption setup in oil that offers me some flexibility over a larger time frame than, for example, a 45 DTE credit spread would (which is generally just a "one and done" kind of thing). As an alternative to a covered call, I'm going long-dated diagonal here since I can do it more cheaply/smaller than buying USO outright (although at 8.33 a share, it's pretty cheap to begin with). Here's the setup, although it's off hours and the option pricing is unlikely to be accurate: USO Jan 17 7 Long Call/Apr 1st 8.5 short call diagonal Max Profit: Undeterminable Buying Power Effect: $1.52 debit/contract Notes: You want to work this setup like a covered call, leaving the long option untouched as you roll the short option to rake in credit for the life of the trade, taking the entire setup off when the amount of credits received exceeds the debit you paid to put it on by some measure. Naturally, you can also continue to work the short call for credit all the way toward long call expiration as long as it remains profitable to do so. This is why the max profit of the setup is "indeterminable" -- it all depends on when you take the trade off and how much credit you've received for it up to that point.
AMEX:USOLong
by NaughtyPines