Discussion in 'Commodity Futures' started by fluttrader, Aug 23, 2008.
What's the relationship between USO and CL ?
For every X move in CL, USO moves X...
it's almost the same.
look back at the charts. there might be a few percentage points difference, but it's still a pretty good hedge.
look at the relationship between gas(function of CL) and USO. that's what you want to look at if you r looking to hedge your gas costs.
and USO is an ETF, not a futures contract
It's not an ETF. It's a PTP (publicly traded partnership)
You will get a K1 for your income tax return.
I've never invested in USO and thus haven't seen the USO K1 statement.
But, in my regular line of work, I have to pay quarterly income taxes with K1 statements. They are several pages long, but not too difficult to understand for tax filing purposes.
USO includes heating oil, gasoline, natural gas, etc.
go with DXO - double long oil
Now that's a great contract!
Hasn't been out all that long, but the interest will continue to increase in this wonderful product.