There are a lot of comments about oil directions - some of them bullish and other ones are bearish. But please share your opinions about how we can play that trends. Let assume it will go upside in short term. What are the possibilities? USO ? Maybe day trading only, or swing trades lasting one-two days ? Having in mind how that ETF is constructed it is naturally the best short at the market today. Please share your opinion over potential plays - both bullish and bearish.
Oh yeah...rising dollar. Is that a bad thing? How much the US export and how much US import? Doesn't that means that the buying power of the people will increase, therefore they will have some more money to spend for something else. Doesn't the stronger dollar make the commodities cheaper? What about your tank full with gasoline? Multiply by the number of drivers? How much money will remain un-spent for gasoline ( and the example is just simple, the real effect is much more broader ) and would be spent for something else, boosting the economy? Do cheaper commodities mean increased companies profit?
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DutchMark and truthinvesting correctly point that the calculation is not much correct. There is also option requirement over selling of PUTS that make the needed capital to perform the trade - DOUBLE. So, the ROI is not correctly calculated
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USO ?
Maybe day trading only, or swing trades lasting one-two days ?
Having in mind how that ETF is constructed it is naturally the best short at the market today.
Please share your opinion over potential plays - both bullish and bearish.
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'Take Off' with Boeing Option Combination Plays [View article]