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United States Oil Fund

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USO trade ideas

High potential profits awaiting for youMany new traders , even some experienced ones still make the cardinal sins of trading. They are eager to find out the holy grail of trading, believing it is the next indicator in town - the more sophisticated , the better it is. Sorry, let me let the cat out of the bag. If you are the one selling the indicators, no matter what the price tag is, does it not tell you that you can make much more money selling it than to use it to make money for yourself ? It is also not about being able to spot the right trading opportunity as in catching the lowest of low and highest of high. This timing of the market can be a hair pulling exercise. Like in this case, for now , it appears that the bottom is in. I mean, it is already below 4, how far lower can it gets ? See example here . See how many times it breaks out from the bearish trend line only to return below it not once but several times. That is my point - Say it goes to 1 dollar and you long 5.37, your paper loss is 4.37 for 1 contract. Can you afford to lose that ? If yes, read on. Alternatively, if this is indeed the bottom (which we will know much later) and the price shoots up to 8.50, then you are in 3 dollars profit. But, if you want to hold this for a much longer term and the price enjoys a nice bull run to say 11 dollars (conservatively), then your risk is only 4.47 vs a potential gain of 6 dollars. As such, such kind of trade opportunity when it present to you, you must grab it as the risk is low and the rewards are much higher. Over time, if you can spot 1 -2 of such trading opportunities in a month or so, you are going to make some good profits. Hope this explanation helps in planning your trades.
AMEX:USOLong
by dchua1969
9
USO RecoveryInverted H&S forming with following supporting evidence of recovery: - Increasing volume at the apex on the right shoulder. This was when OPEC+ announced cuts to production. Scared sellers took advantage of the pump to $5.8 to unload, but momentum has stayed strong. - This past week has seen the first strong flip from sellers to buyers being in control since the drop started in early January. - RSI has been diverging since the start of the inverted H&S pattern. - We have now crossed the middle BB line and we will likely start following upper BB line up.
AMEX:USOLong
by Ahn_Options_Trading
1
TRADE IDEA: USO OCTOBER 16TH 2 X 2/MAY 15TH 5 CALL RATIO SPREADPictured here is a bullish assumption diagonalized call ratio spread with two times the number of long calls at the 90 delta strike in October as the number of calls in the front month with a 4.45 break even versus 4.47 spot. As of Friday close, it's priced at a 4.89 debit and had delta/theta metrics of 134.84/.45. I generally visualize this setup in two, separate pieces -- one consisting of a long call diagonal and the other, a standalone long. Assuming price breaks the short call running into expiry (and stays there), the long call diagonal consisting of one long call and the front month short will converge on max profit. This will be the difference between the width of the spread (3.00) and what it cost to put on one long call leg and the short call (2.17) or .83 ($83), at or near which that aspect should be stripped off. The remaining call is then left to ride alone as synthetic stock to be taken off in profit, potentially targeting the $8-10/share, making a 5.25-7.25 profit on the standalone long conceivable. In the event price doesn't clear the short call toward expiry, the short call aspect is rolled out to reduce cost basis further.
AMEX:USOLong
by NaughtyPines