Are there short-term trading options for oil names?
I know the intermediate to long term is down, but I like to get in and get out of sectors for a quick buck. What's the outlook?
Answers
195 points
BryanPerry answered 3 months ago …
As you said, crude oil, as measured by the U.S. Oil Fund (USO), continues its downward trek toward the all-important 200-day moving average that sits right at $88 per share.
USO shares are currently trading at $91.50 as crude has fallen recently to the mid-$113 area. The slide in oil prices still feels heavy, but it might be worth staging a quick trade for a technical oversold bounce.
I prefer to use call options rather than trading the stocks or ETFs outright. I think it's easier to capture the upside gains with a lot less capital that way.
732 points
alanj answered 3 months ago …
If you think oil will continue in it's downward trend you may what to consider DUG. It is ProShares' Ultra OIL and GAS sector. It shorts oil. If oil is down, DUG will be up. And the objective is to double whatever the underlying DOW sector is doing on a daily basis. If the underlying oil sector is down 1%, DUG will try to be up 2%. The opposite is also true. If the oil sector is up 1%, DUG will be down 2%.
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