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  • Marc Faber, Jim Rogers and Boone Pickens - Bullish on Oil [View article]
    Can you elaborate on this roll concept?

    I have been tracking USO and it seems like there is an opportunity to trade it (by buying right before options expiration Fridays and selling 1-2 days later).


    On Jan 11 03:00 PM mkreisel wrote:

    > I'm bullish on oil for the long term, but I'm utterly bearish on
    > USO.
    >
    > It's a trap for retail investors who cannot venture into the futures
    > trading and do not understand the monthly roll of future contracts.
    >
    >
    > Right now, oil of March expiration stands at 46.07, while oil of
    > February expiration stands only at 40.83. If the USO has to roll
    > from the Feb to Mar oil today, it will have to pay a ghastly 14-15%
    > premium. Now repeat that 12 time during a year, you can see how much
    > left will be there for USO holders.
    >
    > At this point, I would rather invest in oil related stocks than this
    > USO trap.
    >
    Jan 11 16:58 pm |Rating: +1 0
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