The Next USO Trade — Going Out to November The USO Daily chart has guided our Oil Sector trades since early summer. From the Wave (2) July low near $100, USO has advanced roughly 50 points, producing three profitable call trades in the Premium Service. USO Daily For our next USO trade, we're moving it into the PRO Service and extending duration. Rather than trying to capture another short swing, we're looking for an intermediate-term position capable of participating if the larger Wave (3) advance continues. A continuation of the larger Wave (3) advance could ultimately carry USO toward $225 — roughly midway between the Wave 3 and Wave 5 targets shown on the chart. This is a scenario, not a forecast, but it gives us a useful benchmark for comparing strikes and expirations. USO 2 Day With the technical trend intact, I would rather establish the position ahead of the weekend than risk chasing both USO and call premium following a geopolitical-driven gap Monday morning. With USO holding its breakout during Friday's opening hour, we're going with the November $170 Call for the PRO Portfolio. At roughly the same premium as the December $180 Call, November gives us a strike $10 closer to the money, higher delta and substantial open interest. December gives us another month, but at this point I prefer the more immediate participation in USO's underlying move rather than paying for more calendar. Buy USO Nov. 20 $170 Call at approximately $8.50–$8.85. As always, risk 50%. Once the position reaches a triple-digit gain, our 50% trailing stop takes over. USO November - 63 days out USO Dec Alternative - 91 days out
