Thursday, 5 September 2013

Setup for 6-Sep-13 $USO

With a bunch of economic events being release before the bell rings, it is tough to lock in a definite setup for tomorrow.  That being said, I am looking at the best way to play oil even after it has had a bullish last couple of weeks.  I think oil will continue to increase but would also like to make some money if it takes a couple of weeks to figure out where it is going.  I will be looking to use a diagonal spread on USO.  With the IV almost the same across Sep 2 weeklies and Oct monthlies I will be able to buy the farther out month and not have to pay up for it while collecting front month premium.  Please follow @GreedyOptions to find out if I get filled on the trade.

The Trade - Buy 38.5/39.5 Oct/Sep2 Diagonal

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