Position opened June 25

Position expires July 21
Long 20 calls at $29.00 for $1.45
Short 20 calls at $31.00 for $0.49
Initial Capital outlay: $1,920.00
Profit/Loss point: USO at $29.96
Max profit: USO at $31.00 108.33% or $2,080.00
15% stop loss is $300 lost at USO: $29.81

This is more of a technical trade than anything (thus we have stops at 15% loss). Looking at the chart we see that USO may see some upward movement by late July to take us back into last year’s “Greek” range. Demand and supply of oil are a tricky thing to comprehend. Right now there is an embargo being placed on Iran for example. This is a small trade, and reasonably conservative given how low we have fallen on USO since May. WTI Crude may see further weakness in which case this trade will fail so we’ve placed our 15% stop loss at $300 lost on the trade, or USO at $29.81.

USO Jun27 3 Month Chart