{"id":50155,"date":"2019-10-01T00:21:18","date_gmt":"2019-10-01T07:21:18","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=50155"},"modified":"2019-10-01T00:21:20","modified_gmt":"2019-10-01T07:21:20","slug":"a-roundtrip-for-the-united-states-oil-fund","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2019\/10\/01\/a-roundtrip-for-the-united-states-oil-fund\/","title":{"rendered":"A Roundtrip for the United States Oil Fund"},"content":{"rendered":"\n

The sudden surge in oil prices<\/a> two weeks ago seemed like such a big deal at the time. Yet, there was enough chatter at the time that made me doubt the sustainability of the run-up. I decided to make a hedged play of puts and calls on the United States Oil Fund (USO):<\/p>\n\n\n\n

“I am not quite sure what to make of the market\u2019s response. In a previous era, I think oil prices would have surged a LOT more. So one side of me thinks oil has a lot higher to go as risks increase of a major escalation of war. Another side of me thinks the market\u2019s reluctance to send oil even higher suggests this whole episode will be over relatively quickly. I want to participate in an extreme move that could either get completely reversed or get even more extreme, so I decided to go the hedged route by buying December call options and October put options on USO.”<\/p><\/blockquote>\n\n\n\n