%% It sounds like you agree with his motly fo*l rebuke.Pardon my sarcasm/LOL Looks like USO tracked Tx tea badly in 2008/$120 , but my data wrongly showed $120. I see from USO annual report it went up to about $150, so OK. Looks like most traders will lose money trying to trade this long term; unless you trade it like ERX, use 5 hour charts...…………...…………………......………………. + sell/close it sooner rather than later.LOL Exspense/ETF exspense seen a bit high=$11, 000,ooo+ a bunch of other stuff ; but 00.84 % is about average for levereged stuff. Its chart looks like nat gas etfs x3; trade it seldom is the best way to profit from it;wisdom is profitable to direct
Over approx 99 days, both (USO & /CL) declined by approx the same % as can be seen in the chart below? Seems very negligible. Are we talking longer time frames like years where there lies a huge difference?
I have a bear call spread on USO expires 15jan21, I'd like to ride it down and buy back the short side when it's out of the money. I would like to end up long USO by June. I am one of the fools that read the Seeking Alpha article on Contango. I must admit, in futures contracts I know just enough to be dangerous. Can you explain the divergence from 08-09? Does rolling front month contracts just effect long term investment over long periods of time? Does supply and demand of the shares of the ETF have any effect on price?
The performance of USO or any other crude oil ETF vs spot when the market is in contango is shit. Don't listen to what others are telling you, look at the data. Over it's lifetime, USO has fallen 93% while spot WTI is down 67%. During 2008 - 2011, where prices fell and then rose sharply, it's divergence was huge. https://finance.yahoo.com/quote/USO...81600&interval=1d&filter=history&frequency=1d https://www.eia.gov/dnav/pet/hist/RWTCD.htm
It looks like the May contract expires today or Monday. The June is trading at $25 or $7 above the about to expire May. Whats spot price? Why hasn't the June contract greatly narrowed the spread with the May contract. So that means Monday they'll be quoting the $25 June contract? I'm confused . People will say wow oil was just $18 and now its $25? Makes no sense why the may and June premium did narrow to maximum $1 before the May contract is gone.
U.S. Oil Fund to Move Giant WTI Position as Market Sours https://www.bloomberg.com/news/arti...nd-to-move-giant-wti-position-as-market-sours I'd be careful around oil ETFs right now.