Wednesday, November 04, 2009

USO Covered Call -- Hedging the price at the pump

There aren't many opportunities to hedge our market positions with our personal finances.  It's nice that if I bet wrong going long on USO, that I will be paying less at the pump the next time I fill up, and if I'm right I've more than recouped the extra cost.  

 Doubled up on oil, buying USO at 40.97 and sold-to-open Nov 41 calls at 1.30 for a net investment of  39.67.   I did sequential market orders because I have not been getting quick fills on combo orders on USO.

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