Aug. 20 at 12:33 PM
$USO For those that are new to USO, hereās a friendly reminder:
Options donāt heavily move USO like normal stocks.
USO holds real oil futures- when thereās fear, this thing flies. Big institutions can create and destroy USO shares on demand, so if the share price ever drifts from the value of those futures, they arbitrage it right back (sometimes). Not anymore of course.
Translation: USO follows the front-month WTI contract (right now /CLV26). Thatās it.
Options are passengers. The futures are the driver.
GL to all the bulls