Gary Lucido

Four Ways to Capitalize on 'Super Contango'

Given how USO works you can not capitalize on the contango by buying USO. USO holds the front month contract and rolls it over to the next month each month. Therefore, if we assume that oil futures remain unchanged from where they are now and the spot price follows the futures exactly then there would be zero profit from holding USO. Each month it would have to reinvest at the higher price of the next front month contract. However, if USO actually inventoried oil it would be a different story.

The Search For Yield

There are some opportunities out there with some of the struggling institutions. They are offering higher yields to attract depositors and, of course, the government will bail you out if they go under. Unfortunately, it's often not worth the effort to pursue these as I found out. I got in on a 5.25% CD with Countrywide but you would not believe the hell I went through to make it happen. You can read the story here if you are interested:
www.investingminds.com...