Thoughts on going long oil and gas stocks, shorting USO?

Discussion in 'Trading' started by Saltynuts, Jul 28, 2020.

  1. Thoughts on this?

    Thanks!
     
  2. qwerty11

    qwerty11

    u mean short uso because of short oil or the alleged flaws?
     
  3. xandman

    xandman

    Aside from buying longer term futures contracts , there is no more contango to bleed USO. The declining dollar will reprice oil higher and OPEC won't make the same mistake twice.

    I would rather do the opposite of that trade until the end of the year.
     
    unconventional wisdom likes this.
  4. maxinger

    maxinger

    what strange strategy.

    USO is as flat as a flat glass. price has been around $28 for donkey months.


    when you do spreading, you expect
    spread to widen or
    spread to shrink.

    In this case, why bother to do spread when USO price is so flat?
    why don't you simply long the unknown oil and unknown gas stocks?
    why add another complexity?
     
    Last edited: Jul 29, 2020
  5. Considering the totally unpredictable value of oil right now, I would suggest you to rather wait a while.
     
  6. Overnight

    Overnight

    Aren't you a bit late to the party offering this sage advice?