Trade of the Week- Crude Oil

One of the secondary reasons for the market crash (after COVID-19) has been the extreme selloff in the price of crude oil. Crude oil has dropped to around $20 per barrel for the first time since 2002 due to a price war between Russia and Saudi Arabia. One popular method for trading crude oil is the United States Oil ETF (USO), which has dropped all the way down to about $4.50 per share.

Some trader or fund is taking advantage of the low price by using very long-term options, all the way out to January 2022. The trade involves selling puts to help finance calls, which makes a lot of sense given how low the price of USO is.

Source: MoneyShow.com
(April 3, 2020 - 6:12 AM EDT)

News by QuoteMedia

www.quotemedia.com