Learn a Smarter Way to Play a Bounce in Oil

  • The easiest way to play a bounce in oil isn't always the smartest. The Crude Oil ETF ($USO), energy stocks, and MLPs all have their own problem with roll yields, debt, and principal risk.
  • Because the Crude Oil ETF USO focuses on matching the movements in Oil prices today or tomorrow, not over the long term, every day you own a ETF and prices aren't bouncing, it's dragging down the ETF's price.
  • Investing in Oil via $USO or Oil futures, or oil stocks is a binary, you either make money via Oil going back up or not. 
  • Investing via a trading strategy with exposure to Oil takes away that binary aspect. You'll get exposure to a bounce, but also get protection until it bounces (or it never bounces), via diversification into other markets and the ability to go short.