LD Lossdog Research
symbol

USO

3 matching records.

Trade idea

USO selling calls

The speaker took a short position by selling calls on USO at 30 and 3040 when it hit a dark pool at 127 and 18 cents. The trade was based on the idea that dark pools could provide insights into market movements, and the speaker believed that the price action in dark pools could be used to inform trading decisions. The trade was executed with the expectation that the price would not move significantly beyond the dark pool levels.

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Strategyselling calls
AssetETF
Expirationnot specified
Time horizonnot specified
Entry / triggerUSO hit a dark pool at 127 and 18 cents
Target / exitnot specified
Invalidation / stopnot specified
SpeakerSpeaker
Structure / legs
  • 30
  • 3040
Risks
  • Market volatility
  • Liquidity issues
  • Inability to execute trades at desired prices
shortETFshortselling callsUSO
medium confidenceVerify in video at 32:45 ↗
Trade idea

USO defined risk

A short put butterfly is a high probability trade that can be used when the markets are wide on the call spread side. This strategy is bullish and aims to collect a small premium. However, it is important to note that the trade is only profitable if the crude oil price moves higher, and the risk increases if the price moves against the trade. The trade is best executed when the market is in a late cycle, and the trader should be prepared for potential losses if the trade goes against them.

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Strategydefined risk
AssetETF
Expirationnot specified
Time horizonlate in the cycle
Entry / triggermarkets are wide on the call spread side
Target / exitcollect a few pennies
Invalidation / stopif the crude oil price moves against the trade, the risk increases significantly
SpeakerChris
Structure / legs
  • short put
  • long put
  • long put
Risks
  • significant risk if the crude oil price moves against the trade
  • limited profit potential
short put butterflyETFUSO
medium confidenceVerify in video at 35:04 ↗