Back into Oil 27-Nov-09 Buy-Write at USO 38.20 / 1.49

USO has been on a pretty negative trend recently.   The big question is whether it will drop through the resistance level around 38, or will it start trending back up.    With the general economy on an uptrend I doubt that oil prices are really going to drop much, so I bought USO at 38.20 and sold to open Dec 38 calls at 1.49 for a net investment of 36.71.    If USO just stays where it is the gain at the option expiration would be $3.5%  for a 3 week investment.

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